4 ms·
Joe's Pizza not reporting their entire income or some plumber not reporting their side gig income isn't really a big deal except to the people who get bent out
by throwaway0a5e 6y ago
Joe's Pizza not reporting their entire income or some plumber not reporting their side gig income isn't really a big deal except to the people who get bent out of shape over the sanctity of taxes. Only their thin profit margin (businesses with fat margins can afford to not run the risk of being on the wrong side of the law) doesn't make it right back into the local economy, arguably in a more efficient manner than if the money was taxed and given back by the government.
- FooBarBizBazz 6y agoI've heard that one of the down-sides of underreporting is that, if in the future you want to get a business loan, you won't be able to claim as much past/future cash flow, so the bank won't extend you as much credit. For a plumber who plans to avoid debt, maybe that's fine. For another business that depends on leverage, like real estate, it could be disadvantageous, overall.