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Almost 1 in 6 Americans Blow Off the IRS and Don't Pay Taxes
Associated Content ^ | 7/5/07 | John Bambenek

Posted on 07/05/2007 3:17:45 PM PDT by indigo5

According to an IRS spokesperson in an article about anti-war tax resistance, 16.3% of Americans are in non-compliance with their taxes according to the Associated Press.That isn't fudging the numbers or coming up with creative tax deductions; it's simply evading taxes outright. While the story about the anti-war movement calling on people to not pay taxes to protest the war is interesting, the fact that a growing number of Americans are simply evading taxes is startling.

According to IRS estimates, that means there is $345 billion in uncollected taxes per year or roughly 2.6% of the national GDP. As a result of collection efforts, the IRS has generated over $48 billion of that amount in 2006 (or about 15%) according to CNN. These estimates do not include corporations using tax shelters (which "legally" protect them from taxes) or the rich using similar tactics. In 2006, the IRS audited about 1.3 million tax returns out of 130 million filed or an audit rate of about 1% according to an IRS source quoted by CNN. With over 16% overtly flouting the IRS, at best only 1% of those will even be challenged.

Seen at Digg

(Excerpt) Read more at associatedcontent.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: crime; fairtax; govwatch; irs; taxes; taxevasion; undergroundeconomy
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To: indigo5

There are just too many and we can’t do nothing about it, so we should give them amnesty.


61 posted on 07/05/2007 5:26:49 PM PDT by Exton1
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To: MacDorcha

Don’t worry. We’ll all be criminals soon enough.


62 posted on 07/05/2007 5:29:25 PM PDT by B4Ranch (Check out this website for the National Veterans Coalition http://www.nvets.org/)
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To: livius

I listen to Bortz as well.

You are quoting *current* taxes.


63 posted on 07/05/2007 5:34:57 PM PDT by MacDorcha (study links agenda-driven morons and junk science...)
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To: MacDorcha
You have no clue what you are talking about.

You have offered no proof that this is a means by which people will not be able to avoid taxes. How many people already abuse reseller certificates to consume items that are currently untaxed for their own use, without paying the tax? What's to say that isn't going to continue if the sales tax is the only source of revenue?

64 posted on 07/05/2007 5:38:32 PM PDT by pnh102
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To: Parmenio
More and more people are finding ways of working off the books, and it’s not just illegals. People from all walks of life are doing it.

that's been going on for decades. From the electrician doing side work on the weekend to the cash-paid bartender at the local saloon - it's prevalent. People do it to avoid the extra paper work of reporting income, they do it to avoid going over the "earned-income-credit" level, they do it to maintain government support checks such as disability, unemployment, or welfare bennies.

And the employer benefits as well - businesses running on the edge can stay in business by not having to pay withholding taxes for "undocumented" employees, not to mention increased insurance and government costs that are saved when the employee isn't legit.

Walk through any large city neighborhood and note all the small restaurants, bars, and shops. Odds are that half of them employ somebody "under-the-table".

65 posted on 07/05/2007 5:38:43 PM PDT by meyer (It's the entitlements, stupid!)
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To: MacDorcha

Well, yes. What are you thinking of?


66 posted on 07/05/2007 5:42:34 PM PDT by livius
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To: pnh102

And the resale venue doesn’t ever see taxes in your view of the proposed code. Gotcha.


67 posted on 07/05/2007 5:43:21 PM PDT by MacDorcha (study links agenda-driven morons and junk science...)
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To: stefanbatory

No, taxing people at the point of sale or service is too logical. We must support the current oppressive, over-complicated, politically-manipulated system instead! It’s for the Common Good!


68 posted on 07/05/2007 5:46:34 PM PDT by Tolerance Sucks Rocks (Will I be suspended again for this remark?)
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To: livius

My statements are in regard to proposed measures. None of which could viably be used as examples yet.

My “coke tax” statement was simply an illustration of consumer-based taxes.

Just call the supplier a “consumer” and the general populace is then simply paying for the initial costs plus tax. (and those pesky resale scammers foot the bill regardless)


69 posted on 07/05/2007 5:47:14 PM PDT by MacDorcha (study links agenda-driven morons and junk science...)
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To: Bloody Sam Roberts

I use the DRIP principle.

I think the American people are fast warming up to it. The natives are getting restless; some are leaving the evil reservation, so to speak. 

One-term limits will be especially powerful when executed by the voters, not legislature. Senators will champion the voters call to repeal the Seventeenth Amendment. House and Senate candidates will have less vested interest in lobbyists and evermore incentive -- prodding/demand from voters -- to pass the FairTax and repeal the Sixteenth Amendment. Secure boarders and the snowball continues to gain momentum. We live in interesting times. 

70 posted on 07/05/2007 5:49:28 PM PDT by Zon (Honesty outlives the lie, spin and deception -- It always has -- It always will.)
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To: Revolting cat!

Or to put it another way thats roughly the number of cash paid illegal laborers in this country.............


71 posted on 07/05/2007 5:54:37 PM PDT by festus (The constitution may be flawed but its a whole lot better than what we have now.)
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To: pnh102

Well, the FairTax argument goes something like this: evading income taxes only needs one actor (the income earner). I’m aware, by the way, that the employer can conspire with the employee as well. On the other hand, FairTax evasion will always require two actors: the seller and the buyer.


72 posted on 07/05/2007 5:54:44 PM PDT by Tolerance Sucks Rocks (Will I be suspended again for this remark?)
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To: MacDorcha

Well, it’s true that the resaler is the one who foots the tax. However, since virtually everything in the US is resold (that is, it’s not the manufacturer who sells it directly), resellers have a lot of clout, and the first producer to lower his prices to reflect his changed tax status will be besieged by resellers.

I have been dealing with a foreign business where the producers sell the item themselves and therefore give very minimal discounts to resellers. But anybody in the US who has to compete for resalers is going to realize that he has to give his price some serious consideration, since he will no longer be liable for many taxes that were automatic before and his buyers will know this.

My other complaint about our current system is the massive insecurity it generates (I never know what my taxes will be until the end of the year or actually, until my accountant has done them) and the fact that a large percentage of any tax we pay now under our current system goes to enforcement.


73 posted on 07/05/2007 5:56:06 PM PDT by livius
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To: livius
That is, if you wanted to qualify for the reimbursement.

You don't keep up with what you spend or what you make.

The only thing you have to keep up with to get the prebate is how many are in your family, and apply for it. You get the amount of money at the start of every month, that if you are at poverty level that you would owe in sales taxes, if you spent every thing you earned each month.

Only new stuff is taxed. Things you buy at garage sales and thrift stores are not taxed.
No sales tax on used houses or cars.

74 posted on 07/05/2007 5:57:27 PM PDT by carenot (Proud member of The Flying Skillet Brigade)
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To: dan1123

the federal government doesn't need to keep an eye on what everyone is buying.

The states that have a sales tax aren't using the sales tax to keep an eye on what people are buying. Nor will the fed under the FairTax.

75 posted on 07/05/2007 5:59:33 PM PDT by Zon (Honesty outlives the lie, spin and deception -- It always has -- It always will.)
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To: indigo5
Hurrah. Maybe the gubberment wll wise up and get rid of the income tax. Go back to a sales tax.

The income tax is slavery.

76 posted on 07/05/2007 6:17:27 PM PDT by ColdSteelTalon
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To: cubreporter

Then QUIT PAYING them. Real easy. I say more power to those who blow off fedgov, no matter their reasoning.


77 posted on 07/05/2007 10:29:24 PM PDT by dcwusmc (We need to make government so small that it can be drowned in a bathtub.)
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To: indigo5

Another cogent reason for abolishing the income tax and moving to a national sales tax or a value added tax.


78 posted on 07/05/2007 11:46:06 PM PDT by patriciaruth (http://www.freerepublic.com/focus/f-news/1562436/posts)
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To: dan1123

Another side benefit of taxing the states is that the states can each come up with different plans. I think in some states they will keep an income tax. Others will try other forms of taxation like property taxes, or sales taxes. Still others will come up with something new.

In any case the states can decide what works best for them, poitically and financially. States will be able to use their tax code as a lure for businesses.


79 posted on 07/05/2007 11:56:45 PM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: indigo5
Its makes me sad to learn the government is not pillaging wallets deep enough? NO! If anything, I think it collects far more than it needs to.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

80 posted on 07/06/2007 12:00:50 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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