Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (94122)	11/5/2008 3:59:04 PM
From: Katelew	Respond to of 541842

Good point, Neolib. I've read estimates of huge amounts of uncollected taxes in the country. Beefing up the IRS might go a long way to restoring the health of the Treasury without even raising marginal rates.

To: neolib who wrote (94122)	11/5/2008 4:48:42 PM
From: TimF	Read Replies (2) \| Respond to of 541842

Even if true it doesn't mean that higher taxes on them don't have a negative effect. One of those negative effects is that it creates more incentive to cheat. If 50% are cheats then 50% are not, and for the 50% your talking about "cheating" doesn't equal not paying tax. If they manage to hide some income increasing the tax on the rest of their income (probably a strong majority of their income if your talking about that many cheaters) has the negative effects of reducing the incentive to work and invest, and distorting the investment in to tax favored areas.

To: neolib who wrote (94122)	11/5/2008 4:54:35 PM
From: Travis_Bickle	Read Replies (1) \| Respond to of 541842

Imo number of small business owners who cheat is probably closer to 80%. Back when I used to represent people before the IRS if a small business client got audited I'd just throw out the more obvious cheats right from the start ("Okay I'm going to start out by conceding that sea kayaks are not a valid deduction for a psychiatric practice") hoping the IRS didn't catch the less obvious cheats. Every small business in the U.S. that maintains an inventory cheats on inventory. Never heard of one that didn't. A small business can easily skim 10% of net income year after year but if you are a wage earner you're screwed, it's taken out of your paycheck. So wage earners get the short end of the stick there.