It happens all the time. Pay in cash, get paid in cash. It cheats the honest taxpayers.
2006-10-24 12:55:13 · 14 answers · asked by notme 5 in Politics & Government ➔ Politics
Yeah, brainiac. You have visions of these wealthy conglomerates out there gleefully bilking the government.
Do you realize the IRS is bilking the jobs from Americans?
Have you filed any payroll taxes lately? Paid any?
Most employers are ordinary Americans trying to get by and they are also the ones most likely to create jobs. Make it more attractive for people to create jobs, and they will.
2006-10-24 13:08:21 · answer #1 · answered by ? 7 · 0⤊ 0⤋
A business doesn't get a tax benefit if it pays out cash anyomously (Especially if it goes to audit). It looks like the business owner took a draw - the $$ went in his own pocket which is taxable income.
To record an expense on the P&L - has to go thru payroll or 1099. If an employee is on payroll (payroll taxes filed - state lists SSN#'s) then that expense can show up on the P&L statement. If a person is an independent contractor, and pay out over $ 600 in the year gets reported on a 1099 (filed w/ tax ID# to IRS) & can be recorded on the P&L.
So paying someone off the books isn't cheating the taxpayers, it actually overstates the business' income - which is taxable.
2006-10-24 13:08:08 · answer #2 · answered by Vicki B 5 · 0⤊ 0⤋
You don't save taxes by paying in cash. You can't write off the labor expense, since it's not on the books. Since they end up paying the income tax and whatever other tax on that money, the savings in the payroll taxes would be offset.
2006-10-24 13:07:07 · answer #3 · answered by icetender 3 · 0⤊ 0⤋
Yeah and it screws the ones with actual degrees and training in any line of work cause an illegal will work for minimal pay just to make a liveing in the us.The taxpayers need to work harder to support this garbage.
2006-10-24 13:02:56 · answer #4 · answered by Drew 4 · 0⤊ 0⤋
Of course it happens they get cash, no taxes are taken out for squat then they go get foodstamps and all the other goodies and your a bad person when you need the governments help cause you was born here
2006-10-24 12:59:51 · answer #5 · answered by tigerlilliebuick 3 · 0⤊ 0⤋
It's definitely true that people do it...doesn't make it right, but you can't honestly label the people repulicans or anything like it...get real. There are millions of dishonest people out there. Republican, Democrat, Independent...whatever...the political affiliation has nothing to do with it.
2006-10-24 13:00:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Oh you bet!
Happens all the time! Wanna know how you can stop this?
Really simple! WELFARE REFORM. There is less incentive to hop the border if you cannot get free healthcare (that's right, immigrants can get FREE healthcare)... etc.
2006-10-24 12:58:04 · answer #7 · answered by Charlie Bravo 6 · 0⤊ 0⤋
George Bush said our economy depends on illegals. Makes me made.
2006-10-24 12:57:52 · answer #8 · answered by stinkbait30 2 · 0⤊ 1⤋
Yes, it's called ,under the table,but yet this administration clearly does nothing about it.
2006-10-24 13:01:45 · answer #9 · answered by kman1830 5 · 0⤊ 0⤋
Of course there is-- you think that all the landscapers and other small businesses pay on the up-and-up?
2006-10-24 12:57:13 · answer #10 · answered by dapixelator 6 · 0⤊ 0⤋