Re: Why I Pay Too Much in Taxes
17 Dec
2003
17 Dec
'03
11:17 p.m.
From: IN%"frissell@panix.com" "Duncan Frissell" 6-MAY-1996 16:04:24.96
Actually, as a percentage of income, tax evasion is probably more prevalent among the poor than the rich. Because they are less exposed. Studies of spending show that the poorest 20% of Americans spend twice their reported income.
Quite. The poor can get away with this for multiple reasons, including being on more of a cash-based economy. But the largest reason is probably that the IRS doesn't care nearly as much about each individual at the low end of the income ladder as they do about any evasion involving a lot of money. Now, the low end tax evasion probably costs the government a lot more than the rich does... but it's also a lot harder to pursue. -Allen
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E. ALLEN SMITH