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What do you think logically, morally and financially about people who work for cash and don't pay taxes?
Many of my blue collar friends got tired of a formal company paying them $20 an hour for a handyman, hauling and landscaping work and decided that they would branch out on their own.
They advertise on Craigslist as labor and are getting more work than they can handle. Cash only, $50 an hour tax-free. Some days they work from dawn to dusk and earn $500.00. They won't get rich but that is great for people who are basically unskilled and work with their hands. One used to make $8.50 an hour stocking shelves at Safeway.
As a resident of the USA, what do you think about people who work for cash only and don't pay taxes doing jobs on Craigslist?
What do you think logically, morally and financially about people who work for cash and don't pay taxes?
Many of my blue collar friends got tired of a formal company paying them $20 an hour for a handyman, hauling and landscaping work and decided that they would branch out on their own.
They advertise on Craigslist as labor and are getting more work than they can handle. Cash only, $50 an hour tax-free. Some days they work from dawn to dusk and earn $500.00. They won't get rich but that is great for people who are basically unskilled and work with their hands. One used to make $8.50 an hour stocking shelves at Safeway.
As a resident of the USA, what do you think about people who work for cash only and don't pay taxes doing jobs on Craigslist?
I'm sorry, WHERE is it that a random laborer can pull in $50 per hour in cash?
And somehow you personally have MANY friends making this money?
I'm sorry, WHERE is it that a random laborer can pull in $50 per hour in cash?
And somehow you personally have MANY friends making this money?
It depends on the zip code. NYC tri-state? Boston inside the 128 belt? Metro-DC? Bay Area? $50/hour cash for a handyman to clean 2nd floor gutters or a furniture mover is pretty standard.
I'm sorry, WHERE is it that a random laborer can pull in $50 per hour in cash?
And somehow you personally have MANY friends making this money?
Quote:
Originally Posted by GeoffD
It depends on the zip code. NYC tri-state? Boston inside the 128 belt? Metro-DC? Bay Area? $50/hour cash for a handyman to clean 2nd floor gutters or a furniture mover is pretty standard.
So, places where $50 spends like $15 does in the Heartland.
It depends on the zip code. NYC tri-state? Boston inside the 128 belt? Metro-DC? Bay Area? $50/hour cash for a handyman to clean 2nd floor gutters or a furniture mover is pretty standard.
Maybe for a mover. I don't see landscapers getting that.
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This is no different than the people making money without paying taxes at garage sales, selling on Ebay, Craigslist, or other internet sites. It's risky though, and easier to get caught, because when they do their taxes and claim an income of $10,000 and a mortgage interest deduction of $20,000, it will raise a bright red flag. If they put any of that money into the bank for checking/debit to pay bills, the IRS has access to it, and will wonder where it came from. Another source of tax-free income for the self employed is bartering. Someone who owns a roofing company, for example, gets his truck transmission rebuilt in exchange for repairing the roof of the mechanic. The IRS doesn't have enough people to catch anywhere near all of the cheaters, and people know it so they are willing to take a chance and get away with what they can.
How do these people get caught ?......if it a cash job, how is it traced ?. Granted, they will take a hit with SS later in life, but will also be sitting on a pile of cash if they are smart, and if they have a spouse who is working and has Health Insurance, should be fine. I don't think it's right, but there are a whole lot of folks doing it, some don't have a choice, gotta keep your head above water and feed the family.
It's very easy. They trace it when you deposit or invest it or in some cases when you spend it. Banks actually report deposits over a certain level to the IRS, the interest is likewise reportable. If there is an audit - you better have a good explanation of where the source of this funds come from, and if they see a new car in the driveway, once again be prepared to support that via documented income sources. Buy a house? - reported to the IRS. Buy an expensive boat? - reported to the IRS. Of course we are talking about large money, not Joe six-pack money. You can also bury your money in a pillowcase and bury it in the backyard I guess.
That's why the illegal practice of money laundering is an industry in itself.
How do these people get caught ?......if it a cash job, how is it traced ?. Granted, they will take a hit with SS later in life, but will also be sitting on a pile of cash if they are smart, and if they have a spouse who is working and has Health Insurance, should be fine. I don't think it's right, but there are a whole lot of folks doing it, some don't have a choice, gotta keep your head above water and feed the family.
They usually don't unless they are making and depositing big money. All these people working for cash aren't making as much as others make it out to be. Work isn't consistent enough and too much time is spend traveling from gig to gig adding commute time and cost to each day. Plus no benefits either and benefits aren't taxed for us normal people and that amounts to a lot of money.
If they get disabled there is no money for social security disability.
But on the other hand, one of my friends made $18K one year at the grocery store which he paid taxes on and then when he started his Craigslist jobs he made $60K tax-free the next year.
There is no free lunch.
Quote:
Originally Posted by evening sun
I know a plumber ( in his late 50s/early 60s) who has made a lot of money in his life, pays no taxes, & says he can't retire becasue he won't get any SS. I think that was a bad deal. IMO it is not worth it, they are better off, if they pay taxes on some of the income, if not all of it.
I'd print up a copy of
The Æsop for Children
The Ants & the Grasshopper
One bright day in late autumn a family of Ants were bustling about in the warm sunshine, drying out the grain they had stored up during the summer, when a starving Grasshopper, his fiddle under his arm, came up and humbly begged for a bite to eat.
"What!" cried the Ants in surprise, "haven't you stored anything away for the winter? What in the world were you doing all last summer?"
"I didn't have time to store up any food," whined the Grasshopper; "I was so busy making music that before I knew it the summer was gone."
The Ants shrugged their shoulders in disgust.
"Making music, were you?" they cried. "Very well; now dance!" And they turned their backs on the Grasshopper and went on with their work.
33 percent of my annual salary is taken away in taxes. Yep, that's correct.
I get up every day, busy my ass and work hard, am exhausted, get disrespected on an almost daily basis, go home, and get up every day to do it all over again the next day. I don't enjoy the process part of earning my paycheck is to pay taxes.
It angers me that people evade taxes and yet my tax dollars still benefit them.
I'm unsympathetic to anything that happens to them.
Nicely and succinctly put.
Quote:
Originally Posted by yellowsnow
Well, the wealthiest corporations on the planet pay no taxes. I don't think our current chief executive pays taxes. I don't think the rich and poor pay taxes either. These people are in good company. Maybe they are just trying to learn how to amass wealth from the wealthy.
Quote:
Originally Posted by TaxPhd
Yes they do.
Quote:
Originally Posted by ryanms3030
What facts do you have? Rachel Maddow proved that Trump paid $38 million in taxes in 2005 alone. How much have paid in your entire life? But his current tax plan will cut taxes and you'll be able to make up to $24k/year without paying taxes so it will be possible to legally not pay taxes for many people
Aside from that, and that I consider RM to be a sublime imbecile, why did no one question where she got confidential tax documents? There was a time, before the Pentagon Papers, when people who did this would be hustled off to the Interview Room. Many probably ARE doing time for such stunts.
We need to remember, taxpayers do not write tax law. Tax law is so complex that if you ask 10 different IRS agents a question, you're likely to get 10 different answers. 80,000 pages of tax law is a direct result of allowing lobbyists to bribe our representatives.
Kick out the lobbying, things get straightened out fast.
Quote:
Originally Posted by kapikap
damn straight. no workers comp, ssdi, un employment, insurance, vacation and sick days. trouble getting loans is another problem. and how are they planning to hide the cash?
It's kind of amazing how some people, some people I repeat, can get away with stuff. I recall the story of, IIRC, a CIA analyst or some mid-level guy like that with access. He was taking bribes from a foreign power, for information. He lived in a house far beyond his means, he drove extremely pricey cars, and this went on for years.
Finally a twig snapped somewhere, again IIRC he was audited and lo! and behold! there were some questions about where the million-dollar house came from on a 50-grand salary.
I think we need to pay people more so that they don't have to resort to working under the table.
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