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> Tax evasion is a felony. The cost of continually having your employees arrested and assets seized can easily exceed the cost of just paying the taxes (which i
by xerophyte12932 12y ago
> Tax evasion is a felony. The cost of continually having your employees arrested and assets seized can easily exceed the cost of just paying the taxes (which is kind of the idea).
You do realize that the Drug Cartels are committing crimes far far worse than tax evasion, right? And there have been no repercussions for them. By suddenly charging them with tax evasion, do you think they'll be stopped?
- AnthonyMouse 12y ago> You do realize that the Drug Cartels are committing crimes far far worse than tax evasion, right? And there have been no repercussions for them. By suddenly charging them with tax evasion, do you think they'll be stopped? Let's try to explain this with math. Suppose X amount of drugs has a market price of $100 and of that, $20 is the actual production cost and $80 is the amortized cost of law enforcement occasionally arresting you and seizing your drugs (and the various measures to attempt to prevent that). Tomorrow we legalize drugs and impose a $60 tax. Joe Farmer in Iowa plants a field full of marijuana and starts selling it for $85 after taxes, keeping a $5 profit after the $20 cost and $60 tax. The drug cartel now has to hit an $85 price point to compete but they need to charge $100 to justify the costs of breaking the law, so they're out of business.
- deleted 12y ago[deleted]