Tax Avoidance on the Rise

[Banjo]

http://www.ritholtz.com/blog/2011/1...ampaign=Feed:+TheBigPicture+(The+Big+Picture)

 

[Lucrum]

Disgusting.

 

[Marcell]

It's obvious right? What are we paying taxes for anyway. For one bailout after another? They seem to get their money out of nowhere anyway. What difference would our little contributions make? Rather keep my money and spend it on good food. Money clearly lost its value, not in inflationary terms, but in terms of trust. Keep whatever you can. Government certainly can't make better use of it.

 

[Lucrum]

Quote from Marcell:

It's obvious right? What are we paying taxes for anyway. For one bailout after another? They seem to get their money out of nowhere anyway. What difference would our little contributions make? Rather keep my money and spend it on good food. Money clearly lost its value, not in inflationary terms, but in terms of trust. Keep whatever you can. Government certainly can't make better use of it.

My sentiments exactly. Although the article is mostly about corporate tax evasion.

 

[nutmeg]

If corps avoid taxes why should I care?

One less cent they pay in tax would probably result in a lower retail price to me. Taxes are passed through to the consumer.

Uhmnnnn.. will my taxes be lower if a corp pays more in taxes? Yes, you say. Prove it.

Oh I get it, my taxes would probably be higher than they are now. Wow...what a way to make a point.

 

[maxpi]

across the board consumption tax is the answer. Consumers would have a direct connection between prices they pay at the point of sale terminal and government's size. Corporations would have to pay tax on everything they buy.

 

[jeb9999]

Quote from Lucrum:

My sentiments exactly. Although the article is mostly about corporate tax evasion.

Tax avoidance and tax evasion are two different things.
The first is legal, the second is not.

Do you claim exemptions and deductions on your income tax return? If yes, then congratulations you are a tax avoider.

The most agressive corporate tax avoider is GE.

The biggest individual tax avoider is Warren Buffet.

The US tax code is designed for favored parties to avoid taxes.

US tax code has gone from 400 pages in 1913 to over 71,000 pages in 2010.

http://politicalcalculations.blogspot.com/2010/03/growing-complexity-of-us-federal-tax.html

Anyone with skill can mine the tax code to reduce their taxes. Even the word "income" has particular meaning in the tax code.

 

[silver914]

Quote from jeb9999:



The US tax code is designed for favored parties to avoid taxes.

It's much more political than most realize. Take the EIC for example.

 

[jeb9999]

Quote from silver914:

It's much more political than most realize. Take the EIC for example.

The US tax code has always been about politics.

It was politics that got the Sixteenth Amendment passed and got us the tax code abomination that we have today.

Evil done is never undone.

 

[silver914]

Quote from jeb9999:

The US tax code has always been about politics.

It was politics that got the Sixteenth Amendment passed and got us the tax code abomination that we have today.

Evil done is never undone.

If you ask the average Joe off the street if the tax code is Democratic, Republican, or neutral I suppose he would think it neutral. I don't know, maybe I'm wrong and maybe the average Joe realizes it depends on who is in office and who needs votes.

Last year I had an IRS agent tell me not to question a fraudulent return...that they needed to give out more money through the EIC. I refused to do it. My boss did it.