Wealthy and Small Business Owners Avoid Taxes
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JoeUser Forums
JoeUser Forums
Here is a reality that can not be denied. The wealthy and the small business owners are the people that can avoid Federal Income Taxes either by using the legal loopholes that were placed in the law to help the FEW or by cheating on their taxes.
A perfect example is Dick Cheney. He had an AGI last year of about $1.7 Million. With that level of income we would expect him to be paying about 33% of that income in Federal Taxes after his exemptions and deductions. Cheney paid only 23% in federal Income taxes last year or about $170,000 less then if he had paid the expected 33%.
Cheney does not release the supporting scheduled for his income taxes. The law only required the release of the 1040 and that is all we get from Cheney. Just how he avoided $170,000 in income tax is NOT released to the public. That is something that Congress needs to change. The President and VP should be required to make public there entire Federal Income Tax. Bush has released his entire return to the public.
I an confident that Cheney only uses LEGAL Tax Loop Holes to avoid taxes but many small business owners are not in that situation. I have no indication that the average non business owner is any more honest than the average Small Business Owner but the fact remains that the ONLY people that have any real chance to cheat on their Federal Income Taxes is the small business owner. I am not saying that all or even most small business owners cheat on their taxes but they are the group that has the ability to cheat the Federal Government.
Individuals who work for some one else have their income directly reported to the Fed as do mortgage companies and banks. If an individual does not include all their income from either W-2’s or 1099’s the Fed computers compare the two and if you fail to report ALL your Income you will most likely receive an exception letter.
Small business owners have many ways to avoid taxes. They can transact some of their business in cash and not report the transaction. They can charge personal expenses as if they were business expenses. They can pad things like depreciation or non business expenses. They can have employees do work on their properties and change that labor to other jobs and make it appear as if it were an operating expense. They can charge personal items on the company credit card. Some small business owner’s use all these are others dodges to avoid Federal Income Taxes.
I wondered why Bush has been cutting the number of IRS agents. Then I realized that these agents are the people that would uncover the tax fraud by small business people who cheat. They are not needed for non business owners because their information is directly reported to the IRS and the computers can determine if an individual fails to report all of their Income. Mortgage interest is also reported to the fed and today you must have documentation for chartable deductions and local taxes.
Bush tells us just how important the small business owners are to our economy. That is true but they should be required to pay their fair share of taxes. We are not talking about the RATE of tax but the AVOINENCE of taxes by cheating. Given the annual deficit, we should be enforcing our tax laws and it is time we add the IRS agents needed and simplify the tax code to eliminate most of the LEAGL Tax Loop Holes like the ones Cheney use to avoid paying taxes. Step one should be enforcement. Step two should eliminating tax loop hopes that benefit the few. Step three return to the tax rates of the 1990’s for the top 10%. Finally cut the pork, earmarks, the Iraq War and some Foreign Aid.
Then we should see what the situation is with our budget deficit. I bet we would be a LOT closer to a balanced budget if not actually have achieved the feat of balancing what we are spending with the tax revenue being collected! We might find we could even begin paying DOWN the National Debt. I will be sending this Blog to the two final Presidential Candidates.
