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This seems broadly accurate, in the sense that middle class wage earners cheat on taxes the least, and have the least ability to. Lower income workers don't che

by CPLX 3y ago

This seems broadly accurate, in the sense that middle class wage earners cheat on taxes the least, and have the least ability to. Lower income workers don't cheat out of much taxes either, because they don't have much money and don't get taxed much, but it's widespread for the under the table or cash economy of course. Which yes, leaves consequential tax evasion as mostly the province of the more well off, where it is rampant.

seanmcdirmid 3y ago
I would think, at least for under the table cash transactions, that it would be more lower income, not higher. That includes the fly by night electrician who will install a new outlet for you as long as you don’t need it certified, cash only, the guy also lives out of his truck. Or is consequential excluding those cases?
- CPLX 3y ago
  Yes it's widespread and frequent among the lower income classes for the reasons you mention. But it's a whole lot less money than tax evasion by the wealthy, for obvious reasons.
  - seanmcdirmid 3y ago
    I’m not sure, probably. But they are usually skipping out on not only income tax, but self employment taxes. I have to say I don’t find myself bothered by it as much as tax evasion.
    - CPLX 3y ago
      I would hazard a guess that the amount of taxes avoided by the top 10% of wealthy in the United States is larger than the actual total income of the bottom 10%.
      - seanmcdirmid 3y ago
        Avoidance isn’t illegal, however, so I’m not sure why it would count. I’m pretty sure evasion in the top 10% is pretty low, just because they have better accountants and wouldn’t take the risk.
  - 2devnull 3y ago
    I’m not sure. I do know that until some of Biden’s changes, identifying tax evasion in the lower classes was hardly possible. The only evasion cases worth identifying were those that could pay enough to help fund the expensive prosecution of such crimes. Now, with greater government power over bank accounts (the 600 dollar rule), we should have better ability to measure tax evasion in the lower classes even though we won’t prosecute it yet.

by CPLX 3y ago

seanmcdirmid 3y ago

I would think, at least for under the table cash transactions, that it would be more lower income, not higher. That includes the fly by night electrician who will install a new outlet for you as long as you don’t need it certified, cash only, the guy also lives out of his truck. Or is consequential excluding those cases?

CPLX 3y ago
Yes it's widespread and frequent among the lower income classes for the reasons you mention. But it's a whole lot less money than tax evasion by the wealthy, for obvious reasons.
- seanmcdirmid 3y ago
  I’m not sure, probably. But they are usually skipping out on not only income tax, but self employment taxes. I have to say I don’t find myself bothered by it as much as tax evasion.
  - CPLX 3y ago
    I would hazard a guess that the amount of taxes avoided by the top 10% of wealthy in the United States is larger than the actual total income of the bottom 10%.
    - seanmcdirmid 3y ago
      Avoidance isn’t illegal, however, so I’m not sure why it would count. I’m pretty sure evasion in the top 10% is pretty low, just because they have better accountants and wouldn’t take the risk.
- 2devnull 3y ago
  I’m not sure. I do know that until some of Biden’s changes, identifying tax evasion in the lower classes was hardly possible. The only evasion cases worth identifying were those that could pay enough to help fund the expensive prosecution of such crimes. Now, with greater government power over bank accounts (the 600 dollar rule), we should have better ability to measure tax evasion in the lower classes even though we won’t prosecute it yet.