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I dunno. Most people I know are 1099 / contract workers, and a lot of them get paid cash off the books. The government might have a rough idea of what they make
by noduerme 5y ago
I dunno. Most people I know are 1099 / contract workers, and a lot of them get paid cash off the books. The government might have a rough idea of what they make, but it definitely doesn't know down to the penny. I keep very good books, but I have foreign bank accounts, crypto trades, subcontractors I paid over Paypal, people who paid me over Paypal, and there's no one system I'm aware of that could figure out what I actually owe in taxes. It still costs me about $800 a year through an accountant to file my taxes. (Luckily, you can write it off).
Until or unless everything is centralized and cash ceases to exist, I don't know how they'd really do it. In South Korea do waiters live on tips? Because in the US, almost all money made in the restaurant service industry comes from unrecorded cash tips; the actual wages are extremely low. The restaurant will attempt to estimate their workers tips and cover the taxes out of the fixed wages, but... this doesn't even get into all the other cash industries like stripping or moonlighting as a dominatrix. The US's tax attitude seems to be: You're on your honor, and most of the time we won't catch you, but not even Jesus can help if we do.
- alistairSH 5y agoWe should keep a broken tax system because many of your peers are paid illegally? Or because edge cases exist? I should be a pretty typical middle-class example. Two salaries (me + spouse), a mortgage, limited other deductions. Yet every year I have to wait for various forms that the government already has, enter the values on paper or pay for tax software, hope I don’t fat finger a value, and wait 7-10 years for an audit. Heck, since Trump increased the standard deduction, I’ll probably be taking that soon (mortgage interest is near that threshold now), but still can’t just click a button at irs.gov that says “yup, that’s right, here’s my bank info for refund/payment”
- noduerme 5y agoOh no. I'm just explaining why it's more efficient for the IRS to do it this way. I'd personally like to abolish income tax and only tax sales, with up to 100% tax on luxury goods and no tax on food, etc.
- adwww 5y agoThat sounds pretty regressive. A massive tax burdon on a low income family so that high earners don't have to file income taxes.
- noduerme 5y agoWell, really it's progressive if it only taxes stuff you don't need to buy. Here's what I think: Fuel and food, no tax. School supplies, shoes, clothing, any item under $100, no tax. Over $100, ramp it up. Diamond rings, 100% tax. Alcohol and cigarettes, 20-30%. Used cars, no tax. New cars, 10% up to 100%. Credits if they're electric or extremely fuel-efficient. Playstations, high end sneakers, Smart TVs, iPhones, rims, jewelry, expensive furnishings, rugs, anything better than your basic washer/drier: 100% tax. Books: Free and subsidized by the government, as many as you want, any book ever written. Healthcare: Free. College: Free. Basically under my plan, as long as you get stuff you need for your family, you pay no tax. If you get stuff you want for your pleasure, you pay tax on it. How's that regressive? The only real downside I see is the potential for a massive black market in luxury goods, tobacco and alcohol. But legalizing and taxing pot and prostitution should take some of the sting out of that.
- adwww 5y agoSo low earners are allowed to eat basic food, but pay astronomical taxes for any luxuries in their life. Which you and I could easily afford.