Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: bert
We are going to wind up with what all socialist and communist countries wind up with - a growing black marked economy. All of us who have played by the rules and have our income all above board and visible, and pay our taxes, will be the suckers, and as all of the new ways to tax us increase, our relative incomes (e.g. buying power) will continuously decrease as those who operate under the IRS radar will ultimately earn more.

I know someone who employs a woman to clean their house, once a week, for 3-4 hours, for $100 (cash, no taxes). This woman doesn't appear to stay always for the full time, has many customers, and cleans multiple houses each day. So, if she cleans an average of 3 houses/day, for 5 days/week, this will earn her ~$1,500/week, without taxes. If she works 47 weeks/year, taking 5wks vacation, she will earn ~$70,500/year with no taxes. To earn that equivalent income, with let's say only 20% taxes would require her to make ~$88,000/year if she were part of the visible economy. Most people making close to $90,000/year probably pay a significant amount more than 20% in taxes, so this woman can earn the purchasing power of someone in a job earning $90,000 or somewhat more per year, while working only 5 days/week and taking 5 weeks vacation.

Yes, I know she probably doesn't always have all of her time slots filled etc., but this type of scenario is not far-fetched. People who cut grass, nannies, house-painters, etc. etc., often have opportunities to get paid ‘under the table’.

37 posted on 01/13/2013 6:40:48 AM PST by pieceofthepuzzle
[ Post Reply | Private Reply | To 27 | View Replies ]


To: pieceofthepuzzle
We are going to wind up with what all socialist and communist countries wind up with - a growing black marked economy. All of us who have played by the rules and have our income all above board and visible, and pay our taxes, will be the suckers, and as all of the new ways to tax us increase, our relative incomes (e.g. buying power) will continuously decrease as those who operate under the IRS radar will ultimately earn more.

Just make sure to stick to cash, as in paper and little pieces of metal.

IRS to track credit card and debit card purchases
55 posted on 01/13/2013 8:45:03 AM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
[ Post Reply | Private Reply | To 37 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson