Reply to For those of you cheat on your tax return...

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Perhaps you don't realize this but it is very difficult for wage earners to cheat on their taxes in a material way.  Almost all of your income is going to be reported to the IRS (i.e. W-2, 1099, etc.) so there is very little tax evasion in this income group.  Brokerages track the basis for securities now so that one loophole has mostly been closed unless you've owned securities for a very long time.

The vast majority of tax evasion comes from the 1%.[/quote]

Perhaps you don't realize this but cheating is very common among those paying low/ no taxes. Think about all those tips or cash transactions. Think about highly-questionable benefits or child credits. That's a huge pot of money the IRS could well go after.[/quote]

1) They already go after this group the most.
https://www.cbsnews.com/news/where-does-the-irs-audit-the-most-poor-rural-counties-that-are-mostly-black/

2) Refundable credits like the EITC and the CTC are the most scrutinized at the IRS, and are the easiest to audit.

3) The money from these audits is not a lot bc these people don’t have a lot. Audits of wealthier people result in more tax even with the increased costs.[/quote]

1) Not true, not even by a mile (and the report in the very link you provided shows why)

2) Easiest to audit: Yes. Most scrutinized: not by a mile

3) You don't understand volume. 20 million people x $500 = $10 billion in easy-to-get tax dollars. That's more than fighting 10 billionaires to death and getting $500M from each -- which rarely ever happens to begin with.[/quote]

I don't see why people don't get this.  Small amounts from millions of people usually adds up to a much bigger amount than a large amount from one individual.

I see this in discussions of corporate pay.  Reducing a CEO's pay by $10 million and spreading that over tens of thousands of employees does not result in a noticeable pay increase for any employee. Same principle at work as above.

(Not meant as a defense of executive management pay--current practices have many problems, but it is generally not the root of low employee pay.)[/quote]

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