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IRS Compels PayPal to Release Info

An anonymous reader writes "Just in time for the tax season, the IRS won a federal court ruling, allowing them to force PayPal to turn over records of American taxpayers who have certain foreign accounts. It's all part of an ongoing effort to track down money held in offshore accounts by would-be taxpayers. A spokesperson for PayPal acknowledged receiving the summons (PDF) and said 'We're still evaluating our options [...] The privacy of our customers' information is something we take really seriously.'"

328 comments

  1. Aww, poor tax evaders! by DrEldarion · · Score: 5, Interesting

    The privacy of our customers' information is something we take really seriously.

    Unfortunately, the article cut out the rest of what was said. The full quote is as follows:

    The privacy of our customers' information is something we take really seriously. This is so we can give them the illusion of actually caring while we continue to fleece them. Fools!

    Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more. In 2001, there was a discrepency of $311 billion between what was owed and what people paid. $311 billion! If half the people in the US pay taxes (I have no idea the true ratio), then that's $2000 less on average per taxpayer that would need to be paid (and actually, even more than that for the honest taxpayers, as the dishonest ones would be paying more). Alternatively, that's a good portion of the budget deficit.

    Privacy is necessary, but honestly, screw tax evaders.

    1. Re:Aww, poor tax evaders! by LiquidCoooled · · Score: 1, Troll

      If the American government would actually reduce Military spending a little then I'm sure you Americans wouldn't have to make up a deficit like that.

      And interestingly, if they KNOW so much is missing, why haven't they got it back - they wouldn't need to go fishing, they would simply say "You DrEldarion, you haven't paid all your taxes, give us your money".
      The figures you quote sound like the *AA made up "lost revenue" figures.

      --
      liqbase :: faster than paper
    2. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Taxes are way too high as it is. The answer isn't paying more taxes, it's getting the message through to government that, no, you aren't going to have this money to work with.

    3. Re:Aww, poor tax evaders! by voice_of_all_reason · · Score: 0

      Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more.

      You fail justice. Hard.

      I'm pretty sure everyone else will agree that with the amount of money the government wastes or just plains steals, the less you have to pay (by any means), the better. Therefore, you are championing for an unjust system because it makes life slightly better for yourself. (insert godwinn-comparison here)

    4. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 2, Insightful

      I'd much rather just replace the whole bloated mess with a harder to evade, less invasive sales tax or VAT.

    5. Re:Aww, poor tax evaders! by DrEldarion · · Score: 1

      Listen, I hate it as well, and yes, I want the government to stop wasting so much money. I don't agree with a LOT of the things our government spends my money on, and I am of the opinion that they spend far too much even on the things that I agree with. It's gotten so bad that I'm seriously considering leaving the country once I'm ready to buy a house and settle down.

      That said, however, none of this changes the fact that people who cheat on their taxes are directly screwing me out of my money.

    6. Re:Aww, poor tax evaders! by eln · · Score: 4, Informative

      The largest class of tax evaders are small business owners who either fail to report or underreport income, or deduct spurious expenses. Unfortunately, the IRS basically relies on the honor system for this information. Because of this, it's really not possible for the IRS to know for sure exactly how much owed tax goes unpaid every year, because it's difficult for them to determine what these small businesses (some of which exist only as tax shelters on paper) should actually owe. The $311 billion is only an estimate. The actual problem may be better or worse than the estimate.

      As for individual wage earners, tax evasion is much more difficult since those wages are also reported by the businesses paying them, so it's easy for the IRS to tell if the numbers don't match up.

    7. Re:Aww, poor tax evaders! by Billosaur · · Score: 5, Interesting

      Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more.

      From CNN: The request for information is an outgrowth of an IRS effort, begun several years ago, to trace money that American taxpayers hold offshore to avoid paying taxes. The IRS said many of those taxpayers access their money through credit and debit cards. The tax collectors have already obtained information from some credit card companies, merchants and payment processors.

      "PayPal is another one of the mechanisms by which money stashed overseas might be spent," Eileen O'Connor, assistant attorney general for the Justice Department Tax Division, told reporters.

      Mind you, while I applaud the IRS's efforts (something I never thought I'd hear myself say), I'd like to know when they plan on applying the same hammer to US corporations and businesses that do the same thing. Hey, if the average dishonest American citizen is going to be made to pay up, let's have some of that dirty money that fatcat CEOs are squirreling away too. I don't like taxes, taxation, and the IRS any more than anyone else, but as long as we're going to have the current system of taxation, then everyone needs to play fair and pay up. If you're an honest citizen, you don't have much to worry about.

      --
      GetOuttaMySpace - The Anti-Social Network
    8. Re:Aww, poor tax evaders! by exi1ed0ne · · Score: 1

      Oh good. You can show me the law that says who's liable for taxes then, because the IRS can't.

      --
      Pessimists.net - as if life wasn't depressing enough.
    9. Re:Aww, poor tax evaders! by itsdave · · Score: 1, Offtopic


      I wonder what it is like to see the world through your eyes.

      what a wonderful world we would live in if the United States would just quit funding the military, why.. there would most certainly be world peace.

      oh, you only said reduce military spending... somehow I doubt you would be happy until we reduce it to nothing.

    10. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0
      That said, however, none of this changes the fact that people who cheat on their taxes are directly screwing me out of my money.

      Wrong.

      Wrong. Wrong. Wrong.

      The government is screwing you out of your money by having an unsustainable budget. There's a budget shortfall so they raise taxes. Wrong solution. THE SOLUTION IS TO CUT SPENDING.

    11. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      Okay... What about the people who are paying the taxes they're supposed to, and correctly declared all the money in their paypal account? Do they not have the right to privacy?

    12. Re:Aww, poor tax evaders! by darjen · · Score: 0, Troll
      Why was the parent modded funny? Am I completely missing a sarcastic joke here or what?

      IMHO, taxes are nothing more than theft, and I have no moral problems with those who are able to find ways to get out of it. Just because the government has the ability to steal money from you at gunpoint doesn't mean they are right in doing so. However, if you are comfortable with financing the murder of thousands/millions of foreigners, as well as the burgeoning police State at home, by all means rail against those who refuse to do so.

    13. Re:Aww, poor tax evaders! by nomadic · · Score: 2, Informative

      Oh good. You can show me the law that says who's liable for taxes then, because the IRS can't.

      Chapter 1, Subchapter A ("Determination of Tax Liability"), Part I of the Internal Revenue Code states quite explicitly who's liable for taxes.

    14. Re:Aww, poor tax evaders! by Dan+Ost · · Score: 1

      Could you please explain this comment in a little more detail?

      --

      *sigh* back to work...
    15. Re:Aww, poor tax evaders! by DrEldarion · · Score: 3, Insightful

      Here's the problem with your argument: The government is spending this money. They're most likely going to spend this money whether we like it or not. Yes, they should spend less. Yes, they are screwing me out of money.

      However.

      People who don't pay what they owe are ALSO screwing me out of money. Whether they like it or not, they have a tax responsibility. If they do not pay their share, then that share must be made up by the other taxpayers. Whether the total amount of taxes collected is $400 thousand or $400 trillion, people who don't pay their share are still screwing me out of money.

      The solution is BOTH to cut spending AND for people to step up to their responsibilities. Even if the government did cut spending, tax evaders would STILL be screwing me out of my money, just not to the same degree as they are now.

    16. Re:Aww, poor tax evaders! by pembo13 · · Score: 1

      I thought they would have aimed at corporations and businesses first as I assumed there would me more fiscal reward to be hard there. But I am not on the inside.

      --
      "Thanks for all the money you paid to us. We've used it to buy off ISO among other things" -Microsoft
    17. Re:Aww, poor tax evaders! by bluephone · · Score: 1

      If you're one of those people who claim income taxes are unconstitutional, I would like to introduce you to the Sixteenth Amendment!

      The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

      If your'e not arguing unconstitutionality, merely you wish to know the actual law, the poster above me nailed it also.

      --
      jX [ Make everything as simple as possible, but no simpler. - Einstein ]
    18. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      The people who should be paying more taxes are the upper class rich. In President Bush's world, the "really rich" have an easier time cheating on taxes without fear of punishment. http://www.americanprogressaction.org/site/pp.asp? c=klLWJcP7H&b=138068 See this article. The "average" taxpayer pays way more than he/she should.

    19. Re:Aww, poor tax evaders! by Dan+Ost · · Score: 2, Interesting

      It's not theft, it's a trade.

      You gain benefit from the actions of the government, and in return, if you are able, you pay
      taxes.

      Just because you didn't ask the govenment to do these things for you does not release you
      from this arrangement.

      If you would like to suggest improvements to this arrangement, please, be bold and post them
      here. We'd love to hear from you.

      --

      *sigh* back to work...
    20. Re:Aww, poor tax evaders! by huge+colin · · Score: 2, Insightful

      By living in the United States, a citizen agrees to give a percentage of their own income to the government. That's one of the rules of this club that we're all in. If you don't like that, you are free to leave and join a different club.

    21. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      In 2001, there was a discrepency of $311 billion between what was owed and what people paid.

      Who came up with that number? The IRS? And if so, how would they know? We're talking about hidden or undisclosed assetts, right?

      And second, what's the discrepency between that number and the billions overpaid by taxpayers who didn't have the know-how to push every possible deduction and loophole to the limit? The middle class and small business owners tend to pay hundreds more per household than they potentially could.

      Not justifying tax cheats, but I do question how much the IRS is really operating in the red.

    22. Re:Aww, poor tax evaders! by fernandoh26 · · Score: 0
      taxes are nothing more than theft, and I have no moral problems with those who are able to find ways to get out of it.
      So you would also have no problem with:
      1) No police to stop vandals from raping your wife and killing your kids because there is no money to fund a police force (and no money for 911 system either)
      2) No firefighters to put out your burning house (that the vandals lit in step #1) because there is no money to fund firefighters
      3) No clean water to drink because there is are no money to fund water processing / distribution facilities
      4) No way to safely go somewhere because there's no money to make / maintain a system of roads and traffic control
      While you may not agree with what the government is doing with your money, not paying your taxes is not the solution to the problem. Voicing your opinion and letting them know with your vote is how you fix it. Taxes are an entirely necessary evil which no one should evade. The mere act of evading it to me seems unpatriotic and (I don't want to start a flame war, but...) dare I say treasonous.
      --
      Chums up, let's do this!
    23. Re:Aww, poor tax evaders! by DrEldarion · · Score: 1

      If you correctly declared the Paypal money, then the IRS already knows the money is there. Is it a privacy risk anymore if now Paypal tells them this as well?

    24. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Larger payoffs, but more work to get there == less ROI.

    25. Re:Aww, poor tax evaders! by rwven · · Score: 2, Insightful

      I think people who whine about the america deficit need to step back and look at some of the deficits of european and other contries have. The ratio of tax income to national debt in America is SMALL fries compared to most european countries.

      The US is FAR from the only country deep in debt and budgets wackiness.

      While i do have a problem with the amount of money being spent by the US gov't, the one place that i would NEVER cut funding would be the military. If they want to cut funding they should cut funding to the pointless social programs paying people to sit around all day. A lot of people in this country refuse to find jobs because...why should they when the gov't sends them money for no reason.

    26. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Would you stop invading other countries?

      No we wont. You are really starting to piss me off.

      Where do you live again?

    27. Re:Aww, poor tax evaders! by DrEldarion · · Score: 1, Offtopic

      What you're saying is like saying that cable thievery is justified, because the cable company is stealing from people by charging for their service.

      So who's the thief, here, again? The government providing services and charging for them, or the person taking advantage of the country while not contributing? If they don't want to pay taxes, then they can move somewhere they don't have to pay taxes. If they want to stay here and take advantage of what the country offers, then they need to realize that they have a responsibility as a citizen to pay the taxes.

    28. Re:Aww, poor tax evaders! by MrLogic17 · · Score: 1

      > If you're an honest citizen, you don't have much to worry about.

      You've obviously never experienced an IRS audit.

    29. Re:Aww, poor tax evaders! by TheSkyIsPurple · · Score: 1

      But how does the IRS know you properly declared everything?

    30. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 1, Interesting

      Or you could look at it like they're just better at playing the money game than you are because it is just a game, afterall. At least that's how both the corporations (and the corporations are screwing you a lot harder than any individuals) and the government apparently see it... survival of the fittest, screw your neighbor and all that. Hey, we'd all like it to be a fair world, but it just ain't.

    31. Re:Aww, poor tax evaders! by Hollyfeld · · Score: 1

      Technically, the Sixteenth Amendment was improperly ratified, but the Supreme Court has already called bollocks on any attempt to use that to get out of tax liability...

    32. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      elbonia

    33. Re:Aww, poor tax evaders! by m50d · · Score: 1

      And ensure the poor pay not just most but all tax.

      --
      I am trolling
    34. Re:Aww, poor tax evaders! by UnknownSoldier · · Score: 1

      http://www.supremelaw.org/sls/31answers.htm

      --
      A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.

    35. Re:Aww, poor tax evaders! by LordOfTheNoobs · · Score: 2, Insightful

      They aren't trying to find "known" tax evaders. They're trying to find the good Dr.Smith, who wants cash up front, does the surgery out back and then uses paypal to sneak his unreported income out of the country. They have reason to people are doing this, and they are looking for a way to track it.

      That we spend too much is nonissue when it comes to finding those that avoid paying their share of the nations budget. Presumably, they would avoid even if we had a smaller debt. After all, I somehow doubt it's the poor and honest doing this.

      Seems more a rich and/or to cover up further illegal activities sort of thing to do...

      --
      They're there affecting their effect.
    36. Re:Aww, poor tax evaders! by Yartrebo · · Score: 0, Flamebait

      The people doing the tax evading are filthy rich. Salaried people have very little opportunity to cheat on taxes. I have extreme contempt for rich people who won't even pay their share of taxes under a system that already favors them.

      The military should be cut too, but why can't we both cut the military and crack down on rich tax cheats? Then we'd have money left over to pay down the debt.

    37. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Wow, $311 billion. That's almost enough to pay for the U.S. Military Budget ($420 Billion). All the goverment has to do is spend as much as China on the Military ($62 Billion) and there's a savings of over what the (non)taxpayers are fleecing the government for.

      Source: http://www.globalissues.org/Geopolitics/ArmsTrade/ Spending.asp

    38. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Is that next to Kneeastan and Wristopolis?

    39. Re:Aww, poor tax evaders! by dada21 · · Score: 0

      The only person screwing you is you -- you're demanding the government keep power over domains that are outside of their Constitutional limits. Forget the Federal government, read the Constitution directly; 90% of our Federal government is illegal.

      On top of that, the Federal Reserve is stealing your money -- they print more money every week than previously existed, making your money (and your investments and your savings) worthless very quickly. In 10 years they've decreased the value of $1 nearly 40% and in 20 years nearly 55%. That is who is stealing from you -- you and those you supported with your vote.

      I don't support any of them, and I'm finding great ways to extricate myself legally from the problem. There are a number of ways the government has set up taxpaying for the ultra-elite, and every individual can take advantage of them and reduce their support of a great evil, maybe the greatest evil in history.

    40. Re:Aww, poor tax evaders! by The+Snowman · · Score: 1

      Taxes may be too high, but we still need them, and some people still don't pay what they owe. The U.S. government does provide many valuable services to its citizens, and many less valuable. Sure we'd be better off if we ditched massive money sinkholes such as social security and medicare (and truly fixed the problems they are a band-aid for), but still, we'd be short changed because some people refuse to pay what they owe in taxes.

      --
      24 beers in a case, 24 hours in a day. Coincidence? I think not!
    41. Re:Aww, poor tax evaders! by Yocto+Yotta · · Score: 2, Funny

      Oh, damn, that's a dilbert reference. And it IS next to Kneebonia. That Kneeastan was just me being clever. See how fucking smart I am. I RULE!

      --
      A B A C A B B
    42. Re:Aww, poor tax evaders! by Khammurabi · · Score: 2, Interesting
      I thought they would have aimed at corporations and businesses first as I assumed there would me more fiscal reward to be hard there.
      Ahh, but corporations are better at hiding their money overseas (and have more legal loopholes to do so) than a regular plebian. The IRS is basically going for the easy wins. Why target a single corporation, when you can pick off 1000+ individuals? Since it's a less complex evasion scheme, it's that much easier to prove and prosecute.

      It's kind of the same logic as why bankrobbers have the highest prosecution success rate, but why corporate crimes go relatively unpunished. Most individuals have very little clout and/or money to defend themselves, while corporations are basically big sacks of money with teeth.

      I think any competent lawyer would be able to force the IRS to narrow their request to users who exhibit "suspicious behavior" as defined by some defensible argument. (Although IANAL and then again Paypal could pull a Yahoo and just cave in.)
    43. Re:Aww, poor tax evaders! by darjen · · Score: 1
      It's not theft, it's a trade.

      Trade involves a voluntary transaction between two parties. Taxes are not trade because if I don't want to pay them, I have to go to jail. End of story.

      You gain benefit from the actions of the government, and in return, if you are able, you pay taxes.

      The benefits I get are for the United States government to spend my money taking over foreign countries, installing harsh dictators all over the world, and imprisoning its own citizens for doing things that should be legal in a truely free society. Sorry but no thanks. Any direct benefit that I receive personally is so small that it would probably cost a small percentage of everyone's taxes.

      Just because you didn't ask the govenment to do these things for you does not release you from this arrangement.

      I don't see any reason why not. If the government's services really are necessary, people would gladly volunteer to pay for them. Right?

      If you would like to suggest improvements to this arrangement, please, be bold and post themere. We'd love to hear from you.

      I would suggest allowing people the choice of paying for the services they would like to receive. Anything else isn't really freedom.

    44. Re:Aww, poor tax evaders! by nomadic · · Score: 1

      Technically, the Sixteenth Amendment was improperly ratified, but the Supreme Court has already called bollocks on any attempt to use that to get out of tax liability...

      Thereby making it technically properly ratified.

    45. Re:Aww, poor tax evaders! by wile_e_wonka · · Score: 2, Interesting
      I'd like to know when they plan on applying the same hammer to US corporations and businesses that do the same thing. Hey, if the average dishonest American citizen is going to be made to pay up, let's have some of that dirty money that fatcat CEOs are squirreling away too.

      When the IRS says "taxpayer," the term includes corporations within it by definition. So, they aren't necessarily going for individual citizens here. Really I think this is getting at those internet businesses that sell stuff on ebay (or wherever) and has PayPal transfer the funds to an offshore account. I think this is a much more likely scenario than some grandma with a Bermudan anonymous bank account.

      At the same time, however, there are other problems that the IRS needs to go after, like this CEO thing you mentioned. Truthfully though, I don't think that's as big of a deal. Most of our tax income comes from small businesses, so that's the more important segment to keep honest. (I know, you're thinking, sure "most of the tax income comes from small businesses," that's because the big ones are evading! But really, there are a ton of small businesses out there. And also more and more businesses of many sizes are taking PayPal).

      Also I think there's one other reason to put off going after the big businesses--they are very sophisticated. It's very expensive to show in court that a big business is cheating because they are so darn good at it. There's just no way to close all the loopholes; the businesses evolve in response to the way the government taxes them. I think the government realizes this, and says "hey, they're employing our citizens."

      But who knows....

    46. Re:Aww, poor tax evaders! by darjen · · Score: 1
      By living in the United States, a citizen agrees to give a percentage of their own income to the government. That's one of the rules of this club that we're all in. If you don't like that, you are free to leave and join a different club.

      I don't recall personally signing any documents stating this agreement. If you have it I would gladly like to see. Thanks.

    47. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 3, Insightful
      If they want to cut funding they should cut funding to the pointless

      social programs paying people to sit around all day.


      Isn't this what we pay our military for most of the time?

    48. Re:Aww, poor tax evaders! by GigG · · Score: 1, Offtopic

      Let's take a nice peaceful year from the past, say 1958. Defense spending was 10.2% of the US GDP. In 2003 the year we invaded Iraq it soared to a staggering 3.7% of the GDP. Get a clue the military isn't where our money get spent.

      --
      Is buying a Harley Davidson as your first motorcycle since you were 16 at age 49 a midlife crisis issue?
    49. Re:Aww, poor tax evaders! by Ohreally_factor · · Score: 2, Interesting

      I think you are under the mistaken notion that your taxes are raised to cover both the increased spending of a GOP controlled Congress(!) and the decrease in tax revenues from tax chorts. The truth is that it's not you who will be penalized or burdened by the tax chorts or the profligate spending of Republican politicians, but those who come after us.

      (Disclaimer: I'm a registered Republican that is more than just a little dismayed at the course the GOP has taken in the last decade.)

      --
      It's not offtopic, dumbass. It's orthogonal.
    50. Re:Aww, poor tax evaders! by darjen · · Score: 1
      What you're saying is like saying that cable thievery is justified, because the cable company is stealing from people by charging for their service.

      The cable service is not thievery because you are entering into a direct, voluntary agreement with them, to give them money so you can view their programming. Moreover, if you grow tired of this programming you are free to cancel this service and remain free from any further obligation with them. I never entered into such a voluntary agreement with the US government.

      So who's the thief, here, again? The government providing services and charging for them, or the person taking advantage of the country while not contributing?

      Once again, I never agreed to receive any of these services. They are pretty much forced on me by virtue of being born and raised in this country. Furthermore, if I don't like the services there are no other options for me but to accept.

      If they don't want to pay taxes, then they can move somewhere they don't have to pay taxes. If they want to stay here and take advantage of what the country offers, then they need to realize that they have a responsibility as a citizen to pay the taxes.

      Why should I be forced to move from my home where I was born and raised because I don't want to pay these thugs who are extorting money from me? I would like to move somewhere where I don't have to pay any taxes but I don't think there's any such place in the world that exists, besides desert islands. And saying that I should move to a desert island if I don't want to be extorted isn't exactly a fair proposition.

    51. Re:Aww, poor tax evaders! by AuMatar · · Score: 1, Insightful

      So, you would rather people in the US die of starvation, malnutrition, and lack of medication? Oh yeah, and let the elderly who are no longer able to work die on the streets. You'd rather spend it on killing people over waepons of mass destruction. Oh, except they didn't exist. Good to know.

      When you say things like that, what it basicly means is you think people like my grandmother- 80 years old, suffering from macular degeneration, and having lost an arm to cancer- should have been living in the streets. She should have had no help for her sight, she should have had no help for her heart medication. In other words, she should have died a decade before she did.

      All I can do to that kind of sick world view is most sincerely wish that you *DO* suffer that kind of pain. Fucking asshole.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    52. Re:Aww, poor tax evaders! by rwven · · Score: 1

      Great... i can see you didn't get my point at all.

      I'm talking about the billions of dollars going to fund people who are perfectly able to work and are not working. Not your 80 year old grandmother. She's living on social security and medicare...

      I'm all for people getting who really do need it. But i am ALL against the majority of people who DON'T need it who are getting it.

      New Orleans post Katrina is a prime example of a whole crapload of people whining because they don't get something they probably never deserved a day in their lives. Yeah there were exceptions, but those pictures of countless 30-40 year olds whining about how the government has never given them enough welfare say it all. It's pathetic.

    53. Re:Aww, poor tax evaders! by twiddlingbits · · Score: 4, Informative

      WRONG! Small business bears the brunt of the IRS. We are more audited than any other class of taxpayers. We can't deduct a lot of items big companies can since most of us as cash based businesses (not accrual based). Ever tried to take a home office decduction as a small biz? Thats a big red flag for an audit. We have already had meals and travel cut back to only 50% deductible. And its not the "honor system", you DO have to have receipts. IMO, large business get all manner of tax breaks, carry forward/carry back of losses, foreign tax credits, worker training credits, property tax breaks, etc. plus they can hire smart accountants to figure out where to save taxes. That being said, I would rathter the Gov't didn't tax the profits distributions (i.e. dividends) to investors, as that is DOUBLE taxation.

    54. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0
      While i do have a problem with the amount of money being spent by the US gov't, the one place that i would NEVER cut funding would be the military.
      Yeah, cuz the American's need someone to invade countries at the whim of a madman.
    55. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      The rest of the world spends $500 billion, while the US spends $466 billion(not counting the cost of ongoing wars in Iraq and Afganistan.) So what is it like to see the world through eyes? I doubt you even have it open.

    56. Re:Aww, poor tax evaders! by Mydron · · Score: 1

      Government waste is one reason why many Asian countries, even without the benefit of low-cost workers (i.e., Taiwan) can eat the lunch of any European nation when it comes to competitive production. Government waste is one reason why American's are finding less in their lunch boxes too.

      Just because someone is worse doesn't mean we have to be satisfied with the status quo.

      You might enjoy your military superiority, but try having the misfortune of being poor (or even middle-class) and sick. You might wish that the government would trade in a few tanks for a few doctors. American's spend 430 billion each year -- not including research, maintenance, production, or active 'wars'.

    57. Re:Aww, poor tax evaders! by C10H14N2 · · Score: 4, Informative

      Roughly 135 million people file tax returns. That's about 93% of the workforce.

      http://www.irs.gov/taxstats/article/0,,id=96629,00 .html

      Now then, as for who isn't paying taxes, well...

      http://www.irs.gov/pub/irs-soi/02in11hi.xls

      28% of all returns have no tax liability, 39% of those under $50k. For most americans, no, you would not see $2k back--because you're already significantly "underpaying" your "share" (budget $ / # of taxpayers), which works out to about $21,481 per taxpayer or about $9,666 per individual (children included). Now, the GDP/capita is $36k, for which an individual is taxed about $5,671. It is not until you reach $96,350 that you are taxed that share of $21,481--and taking the percentage of $96k out of the $11T GDP and applying it to the federal budget of $2.9T you get $25,401. Pretty danged close to the other, eh? Funny, that.

      Still think you're getting screwed? Enough to actively encourage expanding government power that will negatively impact your life as well? Hmm...

    58. Re:Aww, poor tax evaders! by Ohreally_factor · · Score: 0, Troll

      Your agreement is signaled by your sticking around. if you don't like the rules, then leave.

      Otherwise, your argument is similar to the argument that private property is not valid, since you never personally ratified the concept.

      --
      It's not offtopic, dumbass. It's orthogonal.
    59. Re:Aww, poor tax evaders! by um...+Lucas · · Score: 1

      Except, for some odd reason, these days our defense budget is higher than it ever was during the Cold War. Go figure on that one, where we for some reason need to spend more money defending ourselves from a few thousand terrorists than we did against a country aiming 16,000 nuclear missiles at us.

    60. Re:Aww, poor tax evaders! by Gigaplex · · Score: 1

      Actually, you are incorrect. There is nothing in there that requires me to pay taxes. It may not be obvious to you because simple everyday words like Head of Household are legal terms in here and are redifined.

      For example, it says that Head of Households must pay but if you look at the definition of Head of Household it says:

      "maintains as his home a household which constitutes for more than one-half of such taxable year the principal place of abode, as a member of such household..."

      So the year has to be taxable, which would lead you to looking for another law that tells you what determines a taxable year. This goes on forever in circles and that is why the IRS has NEVER been able to tell anyone what law requires a person to pay taxes.

      Just rattling of sections of a code is not impressive. Next time do a little research.

    61. Re:Aww, poor tax evaders! by JesseMcDonald · · Score: 2, Interesting

      Trade requires that both parties agree to the exchange. If one party compels the other to comply (as in the case of taxes), then the term "trade" does not apply, even if the coerced party receives something in return.

      Think of it this way: Without any prior, voluntary agreement, I go over to your house and do something for you while you're gone (mow your lawn, or wash your car, for example). You may think I did a terrible job of it, or you might think I did a great job. Either way, how much do you owe me for my work? Whatever price I happen to ask for? Of course not. An amount equal to my costs (assuming you can determine what my costs were)? No, because you have no control over those costs; I may have spent more than you would be willing to pay. The right answer is absolutely nothing. You never agreed to pay me, and as a result I cannot legally require payment. The work performed is irrelevant in this case, as is your benefit (or lack thereof). There is no contract between us, express or implied, that would give me any right to your property, and there the matter ends. Similarly, there is no contract (express or implied) that gives any member of the goverment any right to my property. They perform their services without any voluntary contract, and then employ theft to recover their costs. If they did not do so, they would by definition be members of private organizations and not the government. The simple fact that governments can legally employ coercion prevents them from engaging in free trade in the first place, since they can always use force to get what they want.

      P.S. In case anyone from the IRS is reading this: I am not a so-called "tax evader." I believe taxes are theft, and therefore wrong, but it's a case of spending some money to protect the rest -- as would be the case with any other thief.

      --
      "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
    62. Re:Aww, poor tax evaders! by Maradine · · Score: 1

      Can I just go on record as saying "Well, if you think things are bad here, look at *Europe*" isn't really a fantastic defense?

      --

      trustedworlds.net - gaming, security, and the gunk that lives in between

    63. Re:Aww, poor tax evaders! by BigJake4589 · · Score: 2, Interesting

      As a small business owner I realize that this problem could be solved by becoming a total cashless society. The problem is the politicians are the largest tax evaders not the people. They would never pass a bill that would create a cashless society.

    64. Re:Aww, poor tax evaders! by Deagol · · Score: 4, Insightful
      A lot of people in this country refuse to find jobs because...why should they when the gov't sends them money for no reason.

      I agree. But ever wonder why so many people try to scam the system like this?

      Um, I dunno... maybe a feeling of disenfranchisement? The thought that they've been fleeced their entire lives by excess taxes to fund worthless pork?

      Yeah, I know. The US dosn't have the most-taxed population in the world, but that still doesn't make it any more correct.

      One year I got very bored and very curious, and for 6 months, I tracked every single cent that I spent, and all forms of taxes extracted from it. That included breaking out the state/federal taxes for every gallon of gas, sales taxes, income taxes withheld from my paychecks, vehicle registration/taxes, property taxes, and all those damned taxes and "fees" on utility and telecom bills. The grand total was about 50% of my gross pay -- and I was making just over $50k/yr at that time. Given how regressive (I think I have that right), lower income working would get shafted a lot harder. WTF?

      So in some sense, I can't blame some people for trying to fleece a system that has fleeced them for so long.

      I just changed jobs -- cut my salary to about 1/3 of what I was making. This was intentional. It so happens that my new annual earnings will be just a hair over the yearly income for a family of 4 to receive the maximum of the earned income credit, which is about $4400. See IRS Publication 596" for details, including the income/benefit tables.

      Our family's self-imposed low cost of living will result in the gub'ment giving us a $4k gift next year, and our standard of living is pretty comfortable as it is. Is this playing the system? Perhaps. But as Lazlo once said, "Well they set up the rules. Lately I've come to realize that I have certain materialistic needs."

      You wanna cut EIC? Go ahead -- so long as you cut industry subsidies (farm, energy, etc.) and corporate welfare (tax-paid sports venues, no-bid contracts, etc.). I'm very libertarian, but I'll take any breaks within this corrupt tax structure that we have.

    65. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Reduce Military spending how much more? The military is half as big as it was 10 years ago, and 10% as big as it was 25 years ago. Yes, the military is basically gutted. That being said, half of the military budget is for stuff that's not at all defense related, and if you'd look at the money instead of just lying, you'd realize that defense spending is a small fraction of federal government spending, and a tiny fraction of total government spending.

      In short, you're a lying cunt.

    66. Re:Aww, poor tax evaders! by suv4x4 · · Score: 1

      "Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more."

      That's the beauty of it. Let's replace taxes with something more graphical, like for example being raped analy.

      If someone escapes and isn't raped analy, the rest will cheerfully hunt him down so that he can be raped analy like they are, since why should only they suffer.

      All should suffer!

      -----

      Back to taxes, large corporation evade taxes without needing PayPal. Those who hide money in PayPal are small businesses and individuals, for most of whom paying the taxes is the difference between profit and bankrupt.

      If the IRS targets PayPal cheaters, that would be since they are the easy target, not the biggest problem.

    67. Re:Aww, poor tax evaders! by Fulcrum+of+Evil · · Score: 1

      I'd much rather just replace the whole bloated mess with a harder to evade, less invasive sales tax or VAT.

      Then we'd have a high VAT and an income tax - no tax ever dies.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    68. Re:Aww, poor tax evaders! by abh · · Score: 1

      How many Americans were killed due to Soviet attack?

      How many Americans have been killed by middle-eastern based terrorists?

      I think we should allocate money toward preventing the latter...

    69. Re:Aww, poor tax evaders! by GigG · · Score: 1

      Except, for some odd reason, these days our defense budget is higher than it ever was during the Cold War. Go figure on that one, where we for some reason need to spend more money defending ourselves from a few thousand terrorists than we did against a country aiming 16,000 nuclear missiles at us. Not by any meaningful comparison we're not.

      --
      Is buying a Harley Davidson as your first motorcycle since you were 16 at age 49 a midlife crisis issue?
    70. Re:Aww, poor tax evaders! by Deagol · · Score: 1

      No, that would be all the state-funded, "certified flaggers" who shepherd orange cones along our nation's interstates. $15/hr, man -- tough work.

    71. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Any you have? If so, please tell us. Otherwise, you're just repeating hearsay...

    72. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      From Art. I Sec II Clause III of the United States Constitution explicitly states that the income tax is not legal:

      "Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers"...

      I compell all U.S. Citizens to prove that the income tax is not a "direct tax" as it is currently administered. This tax is completely and 100% volunatary to citizens living within the U.S.

    73. Re:Aww, poor tax evaders! by Orionetheus · · Score: 1

      I honestly have no idea which way to support, I mean, yeah I think they should pay, but I don't think that paypal should be forced to reveal their information.....

      --
      To each his own.
    74. Re:Aww, poor tax evaders! by vertinox · · Score: 1

      Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more.

      I think I see the problem here... The problem is that we are paying taxes on things that do not need to be taxed.

      Or rather... You are paying too much taxes without fighting it.

      The way I see it... The people who are really frauding the tax system are corporation with multi-million dollar loop holes or maybe Uwe Bolle with that German tax law movie budget thing and not Grandma making extra cash on her ebay sales.

      You see other people as criminals and tax frauds... While the other side sees these people as reducing government income that would have been spent on pork barrel anyways.

      Truth be told, I perfer the middle route. Legally pay as less taxes as possible... Unfortunatley, since I own a small business, I am litterly screwed unless I claim an ungodly amount of expenses.

      And you would be suprised what you can use as legitimate expense... From travel time... Donating to wikipedia... Housing costs... Kids... Entertainment costs for your business... New computer... Advertising costs... etc...

      Keep in mind... My refund check was only $26 from working a full time job and having my small business. Now if I didn't have a business (or didn't report my earnings) I'm sure I would have made several hundred back, but I like to do things legally.

      If you really feel hurt by taxes then I suggest really taking a look at how much you yourself can reduce your tax burden and not blame tax evaders for your high taxes because they aren't the ones to blame...

      It's Uncle Sam.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    75. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Its people like you who think paying taxes is a legal duty that we must all perform. Its people like you who think that taxes are something people pay as their dues to society, their fair share. Whatever happened to ``inalienable rights endowed by their Creator?'' Its people like you who promote socialism and communism under the guise of being fair. Hopefully any and all patriotic American will see through the wool on the wolf. We aren't being fleeced by other taxpayers, we are being fleeced by the government. What gives one man (or even many men) to come take taxes at gunpoint? The fact that the majority says so? If God gives man their rights, how can a majority of people take them away?

      Privacy is everything. If we can't be insured against this kind of intrusion, seriously how can we expect to trust each other in commerce?

    76. Re:Aww, poor tax evaders! by slughead · · Score: 2, Informative

      When you say things like that, what it basicly means is you think people like my grandmother- 80 years old, suffering from macular degeneration, and having lost an arm to cancer- should have been living in the streets. She should have had no help for her sight, she should have had no help for her heart medication. In other words, she should have died a decade before she did.

      Yes but both of the programs that actually DO help people (medicare and social security) will be gone by the time I retire (I'm 23 ATM), and I'll have paid all those taxes and recieved precisely SQUAT for my troubles, aside from a few whore-iffic politicians buying old peoples' votes with promises of riches (which, unfortunately, belong to my generation).

      My grandmother (before she died) stopped voting when all the polticians on the ballot offered her more tax-payer dollars. She considered it 'theft.' She died poor, but she was directly supported by her children. My parents just vote libertarian.

      Social Security started out as a scam (retirement age was 65 which was the same as the life-expentancy), and it turned into a scheme (LBJ added SS dollars to the general fund, allowing him to buy 'guns and butter'). Now, polticians are struggling to gain political clout by fixing or ignorning the situation. Can someone tell me the Democrats' official stance on fixing SS? I heard "anything but what Bush is doing" and not a word more. Bush's stance (allowing you to keep would-be SS taxes in something like a 401k) did NOTHING to fix SS, but simply allowed some people to have a bit more when the system collapses.

      My solution is to slowely eliminate social security spending over time, to the point where it's as worthless as welfare (in spite of all the bitching, Social Security is despensing ~960 TIMES more dollars than welfare).

      Part of it is woeful mismanagement of our government. Consider this: Canadians and their 'free' healthcare pay LESS per capita in annual taxes than we do. If we had their government, PLUS our huge military (before you mention it), it'd STILL be less than we're paying now. However, this does not mean I'm pro-socialism, it simply means ANYTHING is better than what WE have.

    77. Re:Aww, poor tax evaders! by darjen · · Score: 1
      if you don't like the rules, then leave.

      I disagree. Like I said in another post, I was born here and this is where my life is. I shouldn't have to leave just because I don't like people's greedy little hands in my wallet. And any other country I go to will have the same problem.

      I don't like your post, so I think you should leave. There now, doesn't that make you feel great?

    78. Re:Aww, poor tax evaders! by vertinox · · Score: 1

      Thereby making it technically properly ratified.

      The Supreme Court cannot ratify constitutional amendments.

      If the Supreme court tomorrow voted 9-0 to repeal the 1st, 2nd, 3rd, and 5th amendment in the Bill of Rights doesn't make it so.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    79. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      What would she have done 100 years ago? She would have relied on her relatives. That's you, by the way. That was just the way it was done. Grandma moved in with the kids when Grandpa passed away. What's so wrong with that? Are you or your relatives too selfish to collectively care for your own grandmother? Why rely on the rest of the country to foot the bill?

    80. Re:Aww, poor tax evaders! by Gorshkov · · Score: 1

      Part of it is woeful mismanagement of our government. Consider this: Canadians and their 'free' healthcare pay LESS per capita in annual taxes than we do.

      Not quite right. We pay less in INCOME TAX than you do. But our total tax burden is slightly higher (IIRC, about 8% higher?)

      What I DO find interesting, though, is that the single biggest governmental programme in canada (all levels) is the health care system - it's far from free.

      But we still pay LESS per capita on health care than you do.

      I remember recalling a story out of General Motors about 6 months or a year ago saying that they estimated that not having to contribute to medical insurance for their employees in Canada saves them something like $800 per vehicle.

    81. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Despite the fact the taxes and anal rape are totally disimilar since the anal rape doesn't have a purpose and taxes do, I'll correct what is wrong with your version. Change the choice to you and 50% of people being raped anally twice or instead making sure 100% of people get raped anally. Or course you don't want to be anally raped (okay I'm make an assumpmtion here, you might get off on it for all I know), but do you want it go through it twice?

      It is still a bad analogy though.

    82. Re:Aww, poor tax evaders! by nomadic · · Score: 3, Informative

      Well take it from someone who, unlike you, has actually has been through law school, your reading is completely incorrect and borderline crazy. The code I cited to says straight out, "There is hereby imposed on the taxable income...a tax", do you honestly maintain because you don't understand what a taxable year means the entire code is thereby invalid? You obviously know very little about statutory construction if you think that has any legal validity.

      Furthermore, first you complain that everyday words "are legal terms in here and are redifined[sic]", then go on to complain that "taxable year" wasn't redefined. The fact that they didn't define "taxable year" should have clued you in to the fact that it wasn't necessary to define it; for an individual, it's a calendar year.

      The Internal Revenue Code says you have to pay taxes if you make a certain income. The courts have unanimously interpreted it to say so. Any wingnut who tries to raise that defense in court is laughed out of court. I know you really, really hate paying taxes. But so what? You're going to have to keep doing it if you don't want your stuff confiscated and yourself thrown in prison. Life sucks, huh?

    83. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0
      honestly, screw tax evaders

      I don't believe in war. Frankly, I don't believe in 99% of what government does. If I had the means, I would "cheat" on every last cent. Screw you for believing in the whole scam, and for blindly accepting the claim that government deserves funding no matter what it decides to do.

      I don't suppose you had any idea that the income tax was sold as a temporary measure? Sound familiar?

    84. Re:Aww, poor tax evaders! by cayenne8 · · Score: 1
      "So, you would rather people in the US die of starvation, malnutrition, and lack of medication?"

      No, I think he's like a lot of people where we don't mind a safety net for the elderly and infirmed. However, anyone that is able bodied, should be out there working instead of living on the dole in the projects. All of this flap about needing illegal immigrants to do jobs 'Americans won't do' is nonsense. Why don't we take the people that are on the welfare rolls, and get them to do those jobs?? I guarantee that will be incentive for them to get off their asses and try to educate and better themselves. Welfare without work should not be an option to anyone that is able bodied.

      I don't believe Social Security is a good program either...if they'd give me the choice to get out of the program today, if I forfeited all my share I've contributed to this point, I'd do it in a heartbeat...and I've paid quite a lot into it so far. I'd rather take that $$ and invest it towards my own retirement. But, I don't mind contributing to a program that helps the elderly and infirmed. But I find it galling that I pay to keep people to lazy or stupid to work fed and sheltered. If they're that lazy, then fuck'em....there are opportunities out there, but, it is up to the individual to take advantage of them.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    85. Re:Aww, poor tax evaders! by cayenne8 · · Score: 1
      "New Orleans post Katrina is a prime example of a whole crapload of people whining because they don't get something they probably never deserved a day in their lives. Yeah there were exceptions, but those pictures of countless 30-40 year olds whining about how the government has never given them enough welfare say it all. It's pathetic."

      Tell me about it...I live here. So far, it sure is nicer without them here again, tho I feel for the communities that got stuck with them. I do keep hearing Jessie Jackson ranting about people not "having the RIGHT to come back to NOLA". That is nonsense, if you have a job and are willing to work, you can come back just like anyone else. However, there is no longer a tax base capable of supporting the lazy, welfare leeches that lived in all the projects....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    86. Re:Aww, poor tax evaders! by ahodgson · · Score: 1

      I remember recalling a story out of General Motors about 6 months or a year ago saying that they estimated that not having to contribute to medical insurance for their employees in Canada saves them something like $800 per vehicle.

      Sure, even unions haven't figured out a way to make GM pay their personal income taxes for them.

    87. Re:Aww, poor tax evaders! by Software · · Score: 4, Informative
      >And its not the "honor system", you DO have to have receipts.

      The honor system applies more to the income side of the business, not the expense side. Many small businesses often under-report income. They get audited more often than large businesses for this reason. Show me a building contractor who offers a cash discount, and who won't give a receipt for all-cash transactions, and I'll show you a tax cheat.

    88. Re:Aww, poor tax evaders! by slughead · · Score: 1

      Not quite right. We pay less in INCOME TAX than you do. But our total tax burden is slightly higher (IIRC, about 8% higher?)

      What I DO find interesting, though, is that the single biggest governmental programme in canada (all levels) is the health care system - it's far from free.

      But we still pay LESS per capita on health care than you do.

      I remember recalling a story out of General Motors about 6 months or a year ago saying that they estimated that not having to contribute to medical insurance for their employees in Canada saves them something like $800 per vehicle.


      Last time I checked, income taxes paid by americans averaged $22,000 per capita. I doubt it's that high in Canada, however you could be right as the numbers I used were on income tax (I didn't know employers paid so much).

      I find it funny that governments try to conceal taxes by putting the number-crunching on the corporate side. In that I think the sales and income tax is the most honest: at least you KNOW what's being paid.

      Economics Side-Note:
      Keep in mind that according to economics, whenever ANY good or serviced is taxed, less of it is bought and what is bought will be purchased at a higher cost (take a 100-level econ course in college to find out how much). Therefore, the higher the income taxes, the fewer the workers, and the higher the pay. By the same token, if employers are forced to pay taxes per laborer, they too will hire fewer workers but the pay will be lower. Either way, your take-home pay will be the same no matter who pays it if the total tax is the same, and companies will have fewer employees.

      So, as an example, with social security, 6% of your paycheck is ganked, and the company matches it. According to economics, your take home pay would be the same if the company paid all the tax or you paid all the tax. The burden is determined by the tax and the supply and demand curves for your job, and not who writes the actual check to the government.

    89. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      The thing is, there's a basic moral principle here. They should not assume that you're lying. They should assume that you're honest. If you're committing tax fraud, surely It's up to them to prove your guilt, not for you to prove your innocence.

      I'm just playing devils advocate here. Being totally dogmatic about the assumption of innocence clearly isn't going to work. Far too many people would avoid paying taxes. the question is, what should and shouldn't the IRS be allowed to do and see? Should they have any access to overseas investments? Swiss bank accounts? Safety deposit boxes with precious family heirlooms? Account information of foreigners who may have made taxable income in the US?

    90. Re:Aww, poor tax evaders! by suv4x4 · · Score: 1

      "Or course you don't want to be anally raped (okay I'm make an assumpmtion here, you might get off on it for all I know), but do you want it go through it twice?"

      You really don't know how a government make a budget I guess. First, you can take more than half of it on in corruption deals, that's given.

      You can take half of what's left in funding ridiculous projects like tank robocop suits and robot donkeys for the military.

      Then you gotta know that when the budgeting is done, every institution HAS to claim to be as inefficient as possible so they can get more money. If they become efficient (i.e. require less money), they will report lesser expenses and will get progressively less money each year. That's bad since when they need the money they can't go back and change the budget.

      Another reason it's bad is you don't get to spend on cars and luxury buildings, or how about the 500 million FBI computer system that was scrapped recently since it "kinda didn't work".

      So basically government institutions and organisations are motivated by "design" to waste money in the worst ways possible way. A little percentage of that money is spent on infrastructure and salaries.

      Last but not least, if IRS finds that half of US isn't paying taxes and makes them to pay, do you honestly believe that would result in taxes dropping twice? No, we'll see more corruption and more robot donkeys.

      Just don't be naive, people.

    91. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      I don't know. What extra information will they receive?

      Is it a privacy violation for the police to search your home for drugs with no evidence when you have already declared that you have no drugs? Of course it is, but that's probably not the same situation. There are other things in your home that you may want to keep private. Is it possible to have information in your Paypal account that the IRS has no business knowing?

    92. Re:Aww, poor tax evaders! by maxume · · Score: 1

      Harder to evade? What's your solution to the inevitable black market that comes with a 30% tax? People already cheat on state sales tax, no one reports out of state purchases.

      Also, I'm not real convinced that the government tracking the purchase of all new goods is really 'less invasive'.

      --
      Nerd rage is the funniest rage.
    93. Re:Aww, poor tax evaders! by h4rr4r · · Score: 1

      Maybe according to economics I would have the same take home pay, but in the real world I can guarantee you my boss would not give me a raise, if I had to pay more taxes. I can also tell you fairly certainly yours would not either. This is the sort of economics that says people are paid exactly what they are worth. Which does not explain how I this year have saved my employer 10 times my own income, yet received no raise, and how as our company goes deeper into debt the CIO and CEO have gotten huge raises. Your fairy tale capitalism is just that a fairy tale.

    94. Re:Aww, poor tax evaders! by Beryllium+Sphere(tm) · · Score: 1

      >the one place that i would NEVER cut funding would be the military

      Interesting. What would you do at the end of a major war?

    95. Re:Aww, poor tax evaders! by mshiltonj · · Score: 1

      Privacy is necessary, but honestly, screw tax evaders.

      I err on the other side. Screw tax collectors!

    96. Re:Aww, poor tax evaders! by legirons · · Score: 1

      "Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out."

      Even if that requires disclosing financial information on 96,000,000 people who were previously told that it would be held securely?

    97. Re:Aww, poor tax evaders! by Josh+teh+Jenius · · Score: 1

      Quick: Someone give this guy the last +1 he needs for the 5.

      I am so tired of people calling me a "crook" for making a conscious effort to invest in new technology, and taking a perfectly legal tax deduction for it.

      If not for our many great entrepreneurs, you would all be unemployed. Please, take the time to learn the difference between people like me, and people who "start a business" after watching an infomercial.

      --
      Math is math. Regular expression is regular expression. The tools are there. The future is now.
    98. Re:Aww, poor tax evaders! by zstlaw · · Score: 1
      Ummm... You shouldn't have picked New Orleans for your example.

      From wikipedia (http://en.wikipedia.org/wiki/New_Orleans,_Louisia na) : "The per capita income for the city was $17,258. 27.9% of the population and 23.7% of families were below the poverty line. Out of the total population, 40.3% of those under the age of 18 and 19.3% of those 65 and older were living below the poverty line."

      Below I set out a comparison of the US average versus New Orleans.

      Comparison of US average:
      Median household income 1999 $41,994
      Per capita money income 1999 $21,587
      Persons below poverty, 1999 12.4%

      With New Orleans
      Median household income, 1999 $27,133
      Per capita money income, 1999 $17,258
      Persons below poverty, 1999 27.9%

      (statistics taken from http://quickfacts.census.gov/qfd/states/00000.html )

      People are not joking when they said they could not afford a bus ticket out of town. Some places I know in Mississippi which was also hit by Katrina were even poorer than that.

      Mississippi and Louisiana have had some of the worst education systems in the nation for over a decade. As a result there is a poorly educated workforce, which means there is no industry, which means there are no jobs, which mean there is no money for education, which means the next generation is also poor. This is a "vicious cycle" that contributes to the long term poverty of residents.

      People don't work because there are no jobs in their community. When a community has 20% unemployment then service sector jobs an minimum wage opportunities also dry up. Also a LOT of people were unemployed after the storm making it even harder to find work.

      Sorry, I just took umbrage at your choice of New Orleans residents as freeloaders.

    99. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      "If you don't like [taxes], you are free to leave [the United States] and join a different club."

      How did your job interview for Fox News go, b.t.w.?

    100. Re:Aww, poor tax evaders! by ScrewMaster · · Score: 1

      No, you're reacting to his commentary in an extreme way. He may be a fucking asshole but nothing is his comment implied it. He was quite straightforward about it: get the people that can work but just don't want to work out finding it rather than living on the dole. Maybe they don't want to work at a Wal-Mart but they also have no intrinsic right to my hard-earned money, or yours either for that matter. Nothing in the GP's remarks had anything to do with denying medical care to your grandmother.

      And he's right: there are one hell of a lot of people on welfare and the rest of us are paying for them. And just so you understand, my father suffered horribly due to advanced diabetes and all the complications (yes, pretty much all of them) and after the insurance ran out he was fortunate enough to suffer total renal failure ... that got him on Medicare. The previous two years cost us about $15,000/year in medications, and about the same for insurance, and at least when got on Medicare they paid for his meds. He died anyway, but at least it wasn't on the street. He earned it: he paid into that system for decades.

      But that doesn't mean that I have much sympathy for freeloaders. All they do is divert resources that would have been better spent on your grandmother. Yes, I agree that a humane society should provide for those that go through difficult times, but there is one hell of a big difference between "safety net" and "lifestyle."

      --
      The higher the technology, the sharper that two-edged sword.
    101. Re:Aww, poor tax evaders! by Malc · · Score: 1

      It seems the US is just copying Britain. In 1805 the government debt was 30 times the annual budget. The biggest budget item was the navy. From this point Britain expanded trade in its favour, and also built the biggest empire in the world. Roll the clocks forward 140 years and wars had bankrupted the UK and their time the top was over. 50 years later and the US is in a strikingly similar position to Britain after the Battle of Trafalgar.

    102. Re:Aww, poor tax evaders! by MobileTatsu-NJG · · Score: 1

      "Isn't this what we pay our military for most of the time?"

      I'll give you $5 to walk up to a soldier and tell him that. ;)

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    103. Re:Aww, poor tax evaders! by Gorshkov · · Score: 1

      Sure, even unions haven't figured out a way to make GM pay their personal income taxes for them.

      There's really nothing to figure out - the public system already give them the benifits. That's why the savings per vehicle.

    104. Re:Aww, poor tax evaders! by Gorshkov · · Score: 1

      Last time I checked, income taxes paid by americans averaged $22,000 per capita. I doubt it's that high in Canada, however you could be right as the numbers I used were on income tax (I didn't know employers paid so much).

      I don't know about the multipliers there, or even the current ones here in Canada. But back in 2000 or so, I remember that the rough calculation at the time was 1.5. That is, it would cost me about $75,000/year to have an employee at $50,000, by the time you added in the statutory benifits.

    105. Re:Aww, poor tax evaders! by Firehed · · Score: 1

      If the system works as it should, the most you should get in return is an angry look. Should being the operative word, of course.

      --
      How are sites slashdotted when nobody reads TFAs?
    106. Re:Aww, poor tax evaders! by KarmaMB84 · · Score: 1

      My 16th amendment trumps your Article I Sec II Clause III:

      Amendment XVI - Income taxes authorized. Ratified 2/3/1913.

      The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

    107. Re:Aww, poor tax evaders! by KarmaMB84 · · Score: 1

      Any institution that stashes money away fro people bank or not should provide information to the IRS for tax purposes when requested. Why should PayPal be an asset hiding device?

    108. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Few people make me say "WTF?!", and you sir, have achieved that.

      You pay 10-15% tax on your income to the federal government, plus 3-10% to the state government. In addition, you are paying anywhere between 5% and 15%, depending on your income range, into social security of which the government has told you that you will never see. In addition, you are taxed on your very right to have money, since the Federal Reserve Banks continuously issue fiat currency at the cost of printing said money and spending it, which devalue's your money. The Consistant, 3%, year-to-year Inflation you and I see is evidence of as much, and if you think that's not bad, consider saving money anywhere else than a bank. If you saved cash in a safe for 60 years, by the time you were done, you'd lose about half of the value of your savings. Then, there's munincipal governments that have property tax on both the house you happen to live in car you happen to drive. Nevermind the fact that those items are fedal property; check your titles, they're only "certificate of title" and if you check the fine print on the bottom of the loan you used to acquire your certificates for your house and car, you'd quickly come to the realization that FEMA has the right to confiscate those things whenever it wants to, namely to back the national debt. Finally, you pay taxes on everything from gas to electricity to food.

      The national debt is about $50 trillion when conservativally estemated, half of which is to the American people in the form of pensions for public servants, spent social security money ($3 trillion on it's own), and in the form of corporate state and corporate local (state and local governments are instrumentalities of the federal government and are, by definition, corporations). $50 Trillion dollars in governmental debt translates into $30,000 of debt for every man, woman, and child.

      The crux of it all? The federal government, alone, takes in somewhere in the viscinity of $1 Trillion a year, and HALF of that goes to servicing that debt. Meaning, they aren't paying it off, they're paying the interest. Half of that money you pay goes to bankers, and what do those bankers do with it? You can make assumptions, but neither of us knows where that money goes. You can say "into the economy" and I can say, like into prison corporations, or monsanto who sues farmers for having their crops infected bty gen-joked seeds? Do me a favor, go get a dictionary and look up the term "usery"; it used to be a crime that drew capital punishment a few hundred years ago if you do the research.

      Why do they want to evade taxes? Because 25% of your income goes to the government for it's function, which is horribly overgrown and doesn't do it's job, and about 25% of your income goes to service debt. Some people would rather put their income to a more constructive use than engauging in foreign wars for no good reason or paying banks money just because they exist. Defense spending was about $250 billion last year, so in total, you could stop paying about 65% of your taxes and the government would still function. The banks would almost surely collapse, and we wouldn't be waging any wars, but you'd be getting about 20% of your income back. Where'd that income go? To important things, like raising kids, making the economy bloom, buying weapons since the cops can't protect you from shit, ect.

      If you are a law-abiding, tax-paying, program-fallowing, vote-casting citizen in this government, you are a tool.

      The ONLY thing I think these people did wrong as seeking remedy in a place where the government would eventually decide what they are doing is illegal and go after them.

    109. Re:Aww, poor tax evaders! by slughead · · Score: 1

      Maybe according to economics I would have the same take home pay, but in the real world I can guarantee you my boss would not give me a raise, if I had to pay more taxes. I can also tell you fairly certainly yours would not either. This is the sort of economics that says people are paid exactly what they are worth. Which does not explain how I this year have saved my employer 10 times my own income, yet received no raise, and how as our company goes deeper into debt the CIO and CEO have gotten huge raises. Your fairy tale capitalism is just that a fairy tale.

      Barring chronism and nepotism (your situation, not your bosses'), people are paid based on how many people will do the job at a given price (supply), and how much the employer is willing to spend to fill the position (demand). If you have a 90% tax rate on a $10,000/year job, nobody will be willing to work it because it's simply impossible to live on that little money.

      Just because the curves aren't "simple" doesn't mean they're not there. You also must factor in the cost of information (can an employer find a dumbass willing to work for so little, or can an employee find a job that they think they're worth). The board at your company might see the cost of information on finding a new CEO/CIO for lower pay as too high to bother, not to mention the added costs of them picking their butt and not knowing there way around (as percieved by the board).

      Per capita taxes usually rise (take a 10 year span, not a 1 year), as do wages.

    110. Re:Aww, poor tax evaders! by FLEB · · Score: 1

      Keep on, y'know, truckin'. Start another one.

      --
      Information wants to be free.
      Entertainment wants to be paid.
      You just want to be cheap.
    111. Re:Aww, poor tax evaders! by FLEB · · Score: 1

      Or you could look at it like they're just better at playing the money game than you are because it is just a game, afterall.

      As would be the crackdown on unreported income.

      --
      Information wants to be free.
      Entertainment wants to be paid.
      You just want to be cheap.
    112. Re:Aww, poor tax evaders! by ScrewMaster · · Score: 1

      Privacy is necessary. Period. Screw the witch hunt for tax evaders. Slice some of the pork from the budget, reduce the tax rate, and maybe you'll find a lot more people less interested in evading it. Furthermore, given the shift in taxation from the corporate world to the middle class, I'd say "tax evasion" takes many forms.

      --
      The higher the technology, the sharper that two-edged sword.
    113. Re:Aww, poor tax evaders! by PPH · · Score: 1
      And I have to side with the businesses. The original article says that the IRS is seeking data on foreign income. This country (the USA) is one of the few that have a unitary tax system. It reaches outside of its borders to tax its citizens on transactions that do not occur within its jurisdiction.

      This places US businesses at a disadvantage compared to foreign interests, who only pay US taxes on transactions that occur within the US.

      If a US business makes money overseas and brings that cash back inside the USA, fine. Pay taxes on it at that point. The banking system is already set up to report these transactions to the IRS. They don't need details of businesses gross proceeds overseas.

      The primary problem I have with the IRS position on this subject is not so much that someone might be getting away with something, but its the attitude that our gov't has toward its own citizens. Imagine for a moment the reverse situation: A foreign corporation, doing business within the USA and their home government sticks out their hand and asks for a cut of their US earnings. That corporation wouldn't stand for it. But we seem to have no problem behaving as slaves even when we are off the massa's plantation. Lincon didn't free anyone. We all belong to Uncle Sam.

      --
      Have gnu, will travel.
    114. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Next time, get a law degree.

      Taxable year is always the calendar year, UNLESS otherwise specified for certian orginizations.

      Do not confuse calendar/taxable/and fiscal years.

    115. Re:Aww, poor tax evaders! by geekoid · · Score: 1

      You took an 17,000 cut just to get 4400?

      wha?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    116. Re:Aww, poor tax evaders! by Deagol · · Score: 1

      No, I took a less stressful job, with fewer hours because I could. Going from $45,000/yr to $17,500/yr, which is $27,500 less/yr. The government handouts are just icing on the cake. :) The real motivation is being able to work from home and be with my wife and kids full-time. The job's only 20 hrs/week, and the rest is free time.

    117. Re:Aww, poor tax evaders! by jftitan · · Score: 1

      I second your opinion.

      I rather NOT pay for other peoples wellfare, to sit at home and buy expensive crap, that they should be using the money elsewhere.

      My tax money should be going to the fat supervisors at TXdot. Department of Transportation in Texas. I've noticed many times, at road contrauction sites, upto 6 men would be standung around one man working. MANY TIMES, not just one occassion.

        I hope i wont sound racest, or anything, but I do believe in one simple fix (no adjustments or ammendments, flat out this rule with no exceptions) We should deport all the illegals (that cannot pass qualification to become citizen (greencard)), disban the wellfare system (COMPLETELY, force those fat ass (white trash, slackers, college students, people that "don't WANT to work")) to get out and get a job. That would also help our medical system. Because now we wouldn't have illegals using our medical benefits, more unemployed employed with jobs with possibly medical coverage) so less of a drain would be on our medical insurance. almost 3 birds with one stone. I would even think of many other issues that could be corrected by this reason.

      But as many positive options I can think of, I can think of just as many negative issues.

      --
      "Don't Forget to Salt the Fries"
    118. Re:Aww, poor tax evaders! by anagama · · Score: 1

      (quote, paraphrased) "Whine whine whine about lazy welfare slobs".

      How about the lazy ass politicians who wanna be rambo ... except with other people's lives and money?

      http://nationalpriorities.org/auxiliary/interactiv etaxchart/taxchart.html

      28.5% of your fed tax dollars goes to the military.
      18.7% to pay debt, of which about 9% is related to miltary debt.

      In other words, the military sops up 37.5% of the money we send to the feds. And for what? A missile defense system that won't ever protect us against a container bomb (and probably not against a missiles either). A war based on falsehoods to drive up the price of oil? (I own energy stocks and I don't mind the dividends -- but it is true, every bit of news about Iran, or hurricanes, or Nigeria, or some other type of instability makes me check my stocks with a bit of guilty glee -- you think Bush and cronies didn't know the war would punch up their dividends and cap. gains? Don't be a retard.)

      Housing, nutrition, education, and income security amount to a whopping: 11.3%. It's easy to get pissed at the lazy freeloaders out there, but we should be livid at the active freeloaders, e.g., the Fucking Federal Government.

      --
      What changed under Obama? Nothing Good
    119. Re:Aww, poor tax evaders! by Dachannien · · Score: 1

      Sadly enough, this is true, more often than not. Here's a related anecdote:

      Many years ago - around 1990, as I recall - my original home state of West Virginia was running a significant budget deficit. In response, the governor (Gaston Caperton, or Gas Cap, as we used to call him) and the state legislature decided to pass a few tax edicts. One of these was an ill-fated tree tax where you were taxed based on the number of trees you had on your property. The tax was intended to target the lumber industry, but since much of West Virginia consists of forest, the gnashing of teeth among private citizens forced the repeal of this tax within the year.

      But another of these new taxes was a sales tax hike of one percentage point (from 5% to 6%). The tax was touted as being necessary to resolve the budget shortfall, and the public was reassured that it would be a temporary measure.

      16 years later, West Virginians are still paying a 6% sales tax.

      That said, if the federal income tax were actually replaced by a federal sales tax, as in the income tax repeal and the sales tax levy occurred in the same piece of legislation, I would wholeheartedly support it (as long exemptions for necessities of life were made in some way).

    120. Re:Aww, poor tax evaders! by bluephone · · Score: 1

      The point is SCOTUS has ruled that it cannot be challenged, and it is the law of the land. Dozens of time sthrought history SCOTUS has ruled that errors in punctuation or capitalization do not invalidate a law. PAY YOUR TAXES. :)

      --
      jX [ Make everything as simple as possible, but no simpler. - Einstein ]
    121. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      So what is it like to see the world through eyes? I doubt you even have it open.

      I'm going to put that on a t-shirt.

    122. Re:Aww, poor tax evaders! by roman_mir · · Score: 1

      I live in Canada, not the USA, but I still think that you are wrong. Everyone must cheat as much as possible, so that the government gets almost no taxes and is forced to do with a smaller budget. Maybe then, they wouldn't be so haste to start unprofitable wars, finance more public surveillance and remove more and more freedoms. They have too much money and they always find new ways to waste it, don't let them.

    123. Re:Aww, poor tax evaders! by smoker2 · · Score: 1
      People who cheat on their taxes just make the rest of us pay more.
      That sounds a lot like -
      Every person who downloads a movie from the net costs the movie companies $49
      In other words, bollocks !

      Even if every person due to pay taxes actually paid their taxes, do you really think your taxes would go down ?

      Heh, dream on.

    124. Re:Aww, poor tax evaders! by Whiteox · · Score: 1

      I don't think you're racist by definition, but you may be discriminatory by generalising your point of view.
      There are people who wrought the system and there are methods that governments can use to find them, fine them and help them find work. However there are those, who by no fault of their own, become disabled and can only work part time or become unemployable due to their disabilities. In a properly functioning society, the society should look after their own. That would be the aged, infirm, young, single parents and so on. That should be a right and not a privilege.
      In some countries there are re-training schemes, medical examinations on a regular basis to assess disabilities for everyone classified as disabled, reporting of casual or part time earnings that are checked against employer records and an auditing system for others that fit between the cracks.

      Disbandening the welfare system would be a death sentence for most of these people who would have no choice but to become homeless and be looked after by non-governmental agencies like the Salvation Army and similar organisations.
      These organisations exist through donations to proper charities by people like you and I.
      Also, what would happen to you if you suffered a permanent disability? Or if you become fully redundant?
      Where would you go and what would you do if there was no welfare system?

      --
      Don't be apathetic. Procrastinate!
    125. Re:Aww, poor tax evaders! by drsquare · · Score: 1

      I agree. But ever wonder why so many people try to scam the system like this?

      Um, I dunno... maybe a feeling of disenfranchisement? The thought that they've been fleeced their entire lives by excess taxes to fund worthless pork?


      Either that, or they're just lazy. Guess which one of us is closer to the mark?

      So in some sense, I can't blame some people for trying to fleece a system that has fleeced them for so long.

      Come off it, most people scamming benefits have barely done a day's work in their life. Single mothers with four children all to different fathers, nothing to do other than spend benefit money on scratchcards and cigarettes. Work? Why work when the government pays for anything? Sometimes you even get a free house.

    126. Re:Aww, poor tax evaders! by drsquare · · Score: 1

      Small business bears the brunt of the IRS. We are more audited than any other class of taxpayers

      Guess why?

    127. Re:Aww, poor tax evaders! by drsquare · · Score: 1

      There's no such thing as privacy from the IRS. They have the right to find out EVERYTHING you earn. Do you expect them just to take your word for it?

    128. Re:Aww, poor tax evaders! by drinkypoo · · Score: 1

      Coin-operated businesses in the US, which are typically small businesses, are not audited as to their coin in (that's a casino term I guess, but I work in one now) and so they are free to underreport income. Vending businesses, coin-op car washes, and all that are typically heavily underreported to make it look like the business isn't making any significant money. Of course, you don't make it look like it's losing money, because if that happens for too long, you get audited. Eventually they'll require everyone to have coin/bill counters certified by the department of weights and measures or something, and then this will change, but it's a pretty significant amount of money.

      Even aside from this issue, so what if you "have" to have receipts? People aren't sending the receipt you give them for work in to the IRS (yet?) so if you get paid in cash and don't report the income, and don't keep any record you might have of the work in the same place as the rest of it, how the hell are they going to know? Even better, if you can "forget" to issue a receipt (or your receipts don't have identifying marks, just numeric values) and you're paid in cash, then you can definitely still misreport income. I'm not advocating any of this of course, just trying to point out that there are plenty of opportunities to game the system - and where there's a way, there's a will :)

      If you're running a business, why are you worried about an audit? You should be keeping meticulous records for your own benefit in any case. If you don't already have all the information you'd need for an audit prepared, then you're not doing yourself any favors. Take the home office deduction.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    129. Re:Aww, poor tax evaders! by drinkypoo · · Score: 1

      All of this flap about needing illegal immigrants to do jobs 'Americans won't do' is nonsense. Why don't we take the people that are on the welfare rolls, and get them to do those jobs?

      It's not nonsense, exactly. They're jobs Americans won't do for less than minimum wage - we elected the officials who elected to raise it. If you have americans picking lettuce instead of illegal immigrants, then your produce costs double or triple and suddenly (in order to subsidize more expensive produce to the point where people will actually buy it) you're spending five bucks on a head of iceberg lettuce.

      Now maybe you don't mind paying what something is actually worth, but a lot of people do. And really, what IS that head of lettuce worth? The Mexicans are willing to work for less than minimum wage because to them it's a lot of money in that they can support their whole family back home on the crap they get here if they're willing to live 12 to a one bedroom apartment - which they are. Are Americans willing to do that? Probably not very many. Will we be willing to do that before our currency stabilizes again? Probably. Will I be in this country when all that happens? I sure fucking hope not.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    130. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      Yes!

      Why do they have the right to know everything I earn? Why am I presumed guilty of tax evasion?

    131. Re:Aww, poor tax evaders! by Jim_Callahan · · Score: 1

      "...ever wonder why so many people try to scam the system like this? Um, I dunno... maybe a feeling of disenfranchisement? The thought that they've been fleeced their entire lives by excess taxes to fund worthless pork? "

      The fact that "people are lazy and greedy" was not present in your answer indicates to me that your issue-spinner needs to be turned down by about 100000000 rpm.

      --
      ...it's really a sad day for America when we require a goddamn ACT OF CONGRESS to make our DVD players work properly. ~
    132. Re:Aww, poor tax evaders! by FiveDollarYoBet · · Score: 2
      If the system works as it should, the most you should get in return is an angry look.

      Depends, ask a general and you'll get a fatherly look of disappointment.
      Ask a LT and you'll get a bubbling teenage argument on why you're wrong.
      Ask an NCO and he'll probably just walk away in disgust.
      Ask me and I'll tell you about the Christmas I spent building sandbag bunkers for 14 hours.
      Ask some of the guys I served with and you would get knocked on your ass.

    133. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Cutting welfare for individuals sounds great until you realize that corporations receive an order of magnitude more free money and tax breaks on top of being a large part of the reason why individuals go on welfare in the first place. You have fallen into the trap of our garbage...err, I mean politicians...seeking to address the problem only from the bottom end of society, lest it hurt their gravy train of bribes...err, I mean campaign contributions. Thomas Jefferson is surely spinning in his grave right now.

    134. Re:Aww, poor tax evaders! by MrLogic17 · · Score: 1

      I have. The IRS works on the premise of guilty until proven innocent. They may have a party line of being friendly, but the entire basis of an audit is confrontation on the assumption that you're probably hiding something.

      Lots of fun.

    135. Re:Aww, poor tax evaders! by exi1ed0ne · · Score: 1

      Not really. All SCOTUS did was clarify what direct and indirect taxes are. Not to mention your definition is in direct conflict of Article 1, Section 9, Clause 4 of the Constitution. See Pollock vs Farmer's Loan and Trust Co. (157 US 429)(1895); Stanton v. Baltic Mining Co. (240 US 112)(1916); Brushaber v. Union Pacific R.R. Co. (240 US 1)(1916); etc.

      This gets really interesting when you realize that if something is unconstitutional it was never a law. If it was ever struck down, the US Gov't would have to pay all of us back all the tax money ever collected. THAT is why there is so much dirty business whenever the tax subject comes up. There is a huge vested interest in not only the gravy train, but also back liabilities.

      I don't understand why so many people will defend such an opressive, unaccountable (bordering on terrorist) organization. The rules are so confusing, even H&R block couldnt figure it out properly. If you think a citizen asking legitimate questions stands a chance, drink more Kool-Aid. The question "Show Me The Law" should be an easy one to answer. The truth is they can't because there isn't one. I DARE you to ask and see the response you get.

      http://www.rushonline.com/visitors/16thamendment.h tm
      http://www.thepriceofliberty.org/04/04/16/greensla de.htm
      http://www.constitutionalincome.com/sup_ct_pet.php
      Many, MANY, other sites on this subject exist. The fact that they won't answer a simple question to end the debate once and for all is quite telling.
      --
      Pessimists.net - as if life wasn't depressing enough.
    136. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      Do you live in the ghetto? How the hell can you live on $17,500 a year? I can't live on 6 times that amount.

    137. Re:Aww, poor tax evaders! by Politburo · · Score: 1

      Similarly, there is no contract (express or implied) that gives any member of the goverment any right to my property.

      There most certainly is an implied contract. Please reference the works of John Locke, etc. Furthermore, the government has exclusive right to all your property, provided that there is 'due process of law'. I think Article I and the 16th Amendment can safely be classified as 'due process'. Reference the Constitution for that one. If you want to live somewhere with no taxes and no government, move to Somalia or something.

    138. Re:Aww, poor tax evaders! by drsquare · · Score: 1

      Why do they have the right to know everything I earn?

      Because they need to collect taxes based on what you earn. This isn't rocket science.

      Why am I presumed guilty of tax evasion?

      Maybe when you're grown up you'll understand how taxation works.

    139. Re:Aww, poor tax evaders! by Deagol · · Score: 1
      Buying a rural fixer-upper home for $40k was the latest step -- can't beat a $275/month house payment. Getting out of debt and learning to live frugally was another.

      I was commuting 65 miles each way to get to work, and that cost $400/month alone. Throw in $5/day for lunches, on average. It all adds up. I've telecommuted before, and after trying a normal job for a few months, I decided it was time to go back.

    140. Re:Aww, poor tax evaders! by woogieoogieboogie · · Score: 1

      Since you are a lawyer, can you please show why this http://www.wealth4freedom.com/law/IRS-EXPOSED.htm is incorrect? I normally do not believe stuff like this, but it is reinforced by the simple fact that every constitutional Amendment specifically authorizes congress to enforce that amendment, but the 16th amendment does not specifically authorize congress to enforce it. eg... section 2 here Amendment 15 - Race no bar to vote 1. The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude. 2. The Congress shall have power to enforce this article by appropriate legislation. But no section 2 here... Amendment 16 - Income taxes authorized The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. So congress was given the authorization to collect taxes, but no authorization to enforce such collections. As such, it would seem that some legal trickery would be needed to transfer these levied taxes from the people in their "sovereign state" to the federal government which has no authority to involve itself in matters directly affecting the peoples of the individual states. Of course it is easier to dismiss anyone as a kook when they questions the legitimacy of income taxes.

      --
      ... Governments are instituted among Men, deriving their just Powers from the Consent of the Governed...
    141. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      No, you have it all wrong. People who pay taxes are not screwing anyone out of money. The people who are screwing you out of money are the people taking it from you. You need a lesson in common sense.

    142. Re:Aww, poor tax evaders! by The_Honkey · · Score: 1

      Sorry, I have to side against the IRS here. Yes, they are poor tax evaders! Here the government is trying to steal their money (taxes == stealing, one group loses, another one gains), and they have every moral right to keep their hard earned cash! You try to color these "tax evaders" in an evil light with phrases like "they cheat the system so we have to pay more." But you assume that it is right for the government to steal our money in the first place, which I disagree with.

      --
      I am what I am and thats what I am -Popeye
    143. Re:Aww, poor tax evaders! by nomadic · · Score: 1

      I'm not a lawyer, just been through law school. But anyway...

      I normally do not believe stuff like this, but it is reinforced by the simple fact that every constitutional Amendment specifically authorizes congress to enforce that amendment, but the 16th amendment does not specifically authorize congress to enforce it.

      Well by it's very wording such a clause is unnecessary; its already authorizing Congress to levy taxes. Saying "Congress shall have the right to enforce this article" would just create something circular. Congress authorizing itself to authorize itself to collect taxes? Unlike the amendments you cited this one actually starts with the phrase "Congress shall have power...", so a second clause starting with that line would seem superfluous.

      As for the Puerto Rico thing, the Tax Protester FAQ addresses that with all the other issues.

      If you want to call income taxes illegitimate from a moral, philosophical, or practical ground, there is plenty of ammunition for that. I don't personally believe they are, but there are legitimate arguments you can make on all those grounds. To say that they are illegal though is something else; the courts have addressed all these issues, and pretty decisively decided them. To maintain that you can legitimately refuse to pay income tax really is kooky.

    144. Re:Aww, poor tax evaders! by Anonymous Coward · · Score: 0

      The people who don't pay their share of the taxes are also screwing you out of money.

    145. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      Because they need to collect taxes based on what you earn. This isn't rocket science.

      So I tell them what I earn, and they tax accordingly.

      Maybe when you're grown up you'll understand how taxation works.

      I do understand how taxation works.

      Perhaps you'll understand how due process works.

      If the police think I've stolen something, they can't jsut demand access to a safety deposit box and try to find it. They'd need a search warrant. If the IRS think I've evaded taxes, they can start rifling through my account to find this out. Why does one crime give me privacy, and the other not?

    146. Re:Aww, poor tax evaders! by MechaStreisand · · Score: 1

      Of course, you could also have the people who are on welfare now just do those jobs and get paid with welfare only. That way it wouldn't cost any more, and there wouldn't be as much need for illegals. Better all around.

      --
      Disclaimer: IANAL. This post is, however, legal advice, and creates an attorney-client relationship.
    147. Re:Aww, poor tax evaders! by drinkypoo · · Score: 1

      The thing about that is that there's really only two kinds of welfare now, there's disability and there's TANF which only lasts five years and is only available to families with children. The latter class really needs to be able to take care of their children, which means they either need to provide the childcare themselves, or get a job which can pay for childcare. Unless you see their kids out in the fields, too. The disabled could certainly do some jobs, though, depending on disability, like data entry, paper shredding, and so on. Of course you could say that we should just take away people's kids if they can't support them, and at times I think that's a good idea (although I think sterilizing people who go on TANF is a more functional idea... but that's not going to happen in any world I want to live in) but I'm not sure if that actually makes life better for much of anyone. Oh, there's also food stamps, but those are usually given to people who can't support themselves [and their families] even though they are working. In order to get them (in california anyway, but it's under the USDA so I'd imagine this is pretty universal) you either have to be working half-time or a full-time student.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    148. Re:Aww, poor tax evaders! by drsquare · · Score: 1

      So I tell them what I earn, and they tax accordingly.

      Great, I'll tell them I earnt £50 last year.

      You're an idiot.

    149. Re:Aww, poor tax evaders! by huge+colin · · Score: 1
      I don't recall personally signing any documents stating this agreement. If you have it I would gladly like to see. Thanks.
      I never signed anything stating that I wouldn't murder people. But I'd be fucking stupid if I thought I could get away with murder just because I never signed a document like that.
    150. Re:Aww, poor tax evaders! by 91degrees · · Score: 1

      Well, that would be tax evasion, which would result in a very long prison sentence. You're an idiot, and clearly can't even comprehend the argument.

    151. Re:Aww, poor tax evaders! by darjen · · Score: 1

      So here's a question for you: Is murder ok as long as it's done by the State? Because history has shown that war (murder) is the unquestionable result of concentrating a whole nation's resources in one stong government. Regardless of whether you are dealing with fascism, democracy, communism, etc. Maybe you wouldn't get away with it, but our government gets away with it every day.

    152. Re:Aww, poor tax evaders! by huge+colin · · Score: 1
      So here's a question for you: Is murder ok as long as it's done by the State?
      Um... if you're talking about the death penalty, that's not murder. From WikiPedia: "In criminal law, murder is the crime where one or more human beings causes the death of others, without lawful excuse" -- the 'without lawful excuse' part is key. In states with capital punishment, it's totally lawful. Furthermore, at wartime, killing engaged enemy combatants is also totally lawful.
  2. Really? by Anonymous Coward · · Score: 1, Funny

    I mean we take it really really really seriously. In other news, Paypal apparently hires 8th graders to make public statements.

    1. Re:Really? by Maxo-Texas · · Score: 1

      That's very very very funny.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  3. First read by LiquidCoooled · · Score: 2, Insightful

    First glance, whats the problem - paypal must follow requests for the law, then I read it and realised its another fishing mission.
    They want paypal to give out the info of all US customers who use bank accounts in 30 taxhavens.

    I really hope paypal manage to prevent this from happening, it seems like somebody has let power go to their head.

    --
    liqbase :: faster than paper
    1. Re:First read by Alex+P+Keaton+in+da · · Score: 4, Insightful

      I get a bunch of 1099s every year from my investment income- and the IRS gets copies... How is that much different?
      If PayPal wants to act like a bank, they should, well, act like a bank.
      I am all for a simpler tax code, and lower taxes. But until that happens, why should we all be bled dry by the IRS while people with accounts in tax havens get the advantages?
      In all seriousness, how many good reasons could there be for a US citizen to have an account in a tax haven?

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    2. Re:First read by schon · · Score: 3, Informative

      If PayPal wants to act like a bank, they should, well, act like a bank.

      That's the problem though - PayPal doesn't want to act like a bank.

      Banks have to keep track of the money moving through them.

      Banks have to be responsible.

      PayPal wants everyone to give them money, with no accountability.

    3. Re:First read by Anonymous Coward · · Score: 0

      how many good reasons could there be for a US citizen to have an account in a tax haven?

      As many as there are for corporations to have accounts in tax havens as well. Yet, while the IRS is on a campaign to publically shake down individuals, I don't hear much reporting on them catching any corporations with their taxes down.

    4. Re:First read by asuffield · · Score: 2, Funny

      In all seriousness, how many good reasons could there be for a US citizen to have an account in a tax haven?

      Tax evasion, of course.

    5. Re:First read by cinnamoninja · · Score: 1

      In all seriousness, how many good reasons could there be for a US citizen to have an account in a tax haven?

      The article says they are looking for information on any customer who had money sent to over 30 countries. You don't think any American paypal user has legitimate ties to one of 30 countries? Someone can be sending money to family or friends, or be planning on buying a vacation home in one of these places, or otherwise be doing business with people in one of those _30+_ countries.

      This probe worries me, because it just isn't well targetted. Nobody would have a problem if the IRS had a warrant for information about a specific person. However, they don't even have suspects!

    6. Re:First read by bluephone · · Score: 1

      PayPal wants everyone to give them money, with no accountability.

      Bingo! If they were to become a bank they couldn't do things like play with the customers' money in various and sundry shady ways, they couldn't freeze accounts at will with no provocation or proof, hold that money for months and months, generally only refunding it when you actually file suit, etc. This way, PayPal can be a "private" bank-like entity to customers, while enjoying the crooked shade provided by not being beholden to banking laws. that company is as crooked as Lombard street. They don't want to divulge these records for their OWN reasons, not because of customer privacy.

      --
      jX [ Make everything as simple as possible, but no simpler. - Einstein ]
    7. Re:First read by Alex+P+Keaton+in+da · · Score: 1

      Keep in mind however, that many transactions must be reported to the IRS. If you buy a car for over 10,000$ and pay cash, the IRS gets notified...
      It is what it is, and I agree with you about the need for specific complaints/warrants, but the IRS pretty much does what they want...
      Also, do a search on jail terms for knowingly evading taxes. The IRS doesn't play around. I would advocate a national sales tax, but that is another discussion...
      And although I agree with your major point, I don't agree with your statement You don't think any American paypal user has legitimate ties to one of 30 countries? (emphasis mine). That type of argument can be used to defend anything. In a nation of 300 million people, you can always show a few people who have a legitimate use for something. Sort of like how there can be a protest with 1 million people on one side and 10 on the other, and the media shows 10 people from each side and it looks like a balanced protest...

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    8. Re:First read by PingXao · · Score: 1

      I agree PayPal should be treated like a bank.

      I also know a few good reasons why someone would want an account in a tax haven, that have nothing to do with taxes. I'd tell you what they were except, quite frankly, it's none of your business.

    9. Re:First read by Ohreally_factor · · Score: 1

      They make Lombard street look as straight as the 5.

      I think it would be better to say that Paypal is kinkier than a rastaman's pubic hair.

      --
      It's not offtopic, dumbass. It's orthogonal.
    10. Re:First read by Anonymous Coward · · Score: 0
      >In all seriousness, how many good reasons could there be for a US citizen to have an account in a tax haven?


      I can think of one: asset protection. If you're scared of people suing you (think accountants, surgeons, etc.), you put some of your money in a country where US tort actions carry no weight. That is, the country won't give your money to pay a judgment. You have to file and win a claim in that country to get any assets out of there. Unfortunately (for the plaintiff), you've also set it up so that if the plaintiff manages to find out what country/bank the money is actually stored in, and files a claim in that country, then the money moves to a different offshore account. So in practice, the plaintiff will never get anything, and doesn't bother to try. At least, the plaintiff doesn't get anything out of your assets in the offshore haven - your domestic assets are still at risk.


      Of course, the offshore haven also doesn't report income to the IRS.

    11. Re:First read by metamatic · · Score: 1

      US citizens and residents who have money in foreign accounts are legally required to report it. If they make profits overseas, they are legally required to pay tax on those profits. Simple fact.

      Are you suggesting that the IRS should simply trust everyone to follow the law, and not attempt to get documentary evidence? Documentary evidence is now a "fishing expedition", eh?

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    12. Re:First read by thomn8r · · Score: 1
      If PayPal wants to act like a bank, they should, well, act like a bank.

      PayPal is fighting tooth an nail to not be treated as a bank.

  4. Eh? by carterhawk001 · · Score: 0, Offtopic

    Some kind of conspiracy, this exact same story just showed up on fark at the exact same time.

    1. Re:Eh? by umedia · · Score: 1
      "Some kind of conspiracy, this exact same story just showed up on fark at the exact same time."

      I bet anything e-gold is behind this...

      --
      "Humans are considered to be primitive, the third smartest species on Earth"
  5. Hmm by voice_of_all_reason · · Score: 3, Insightful

    I thought "fishing expeditions" were clearly a violation of unreasonable search and siezure.

    Oh, wait. What's that you say? They might catch terrorists? Why, in that case, citizen #83264967 stands ready for duty! Just let me chug some victory gin before we get those bastards.

    //yeah, I should probably be less cranky given that my work weed ends in 1h2m :)

    1. Re:Hmm by MindStalker · · Score: 1

      I believe all US banks currently have to provide this info and do on a regular basis. This is simply another issue of paypal not offically being a bank and the debate over the "privacy" of their users as if they arn't a bank because of this issue.

    2. Re:Hmm by BigChiefMunkey · · Score: 1
      //yeah, I should probably be less cranky given that my work weed ends in 1h2m :)
      It does? That's sad. *q:=
    3. Re:Hmm by turtleAJ · · Score: 0

      //yeah, I should probably be less cranky given that my work weed ends in 1h2m :)

      Your "work weed"?! Shit man!!! Quick! Where do you work at???

      Still, it sucks...

    4. Re:Hmm by Billosaur · · Score: 2, Insightful
      Oh, wait. What's that you say? They might catch terrorists? Why, in that case, citizen #83264967 stands ready for duty! Just let me chug some victory gin before we get those bastards.

      RTFA. The word "terror" or "terrorist" doesn't appear anywhere. This isn't the usual US Government obfuscation in the hunt for terrorists. It's asking a global company to help round up deadbeats so they can be shaken until their fair share of the tax burden falls out.

      --
      GetOuttaMySpace - The Anti-Social Network
  6. Slashbot Hive Mind by Anonymous Coward · · Score: 0

    Like idea of making people pay taxes.

    Hate idea of government accessing private data.

    Head....going...to...explode...

  7. OSQ by Anonymous Coward · · Score: 0

    [on phone]
    Cayman Islands guy:
    [laughs]
    I'm sorry, but I cannot divulge information about that customer's secret illegal account.
    [hangs up]
    Oh, crap. I shouldn't have said he was a customer.
    Oh, crap. I shouldn't have said it was a secret.
    Oh, crap! I certainly shouldn't have said it was illegal.
    [sighs]
    It's too hot today.

  8. Oh man ... by Anonymous Coward · · Score: 0

    I hope they don't bust me for selling beanie babies on ebay and not reporting the profit :-(

  9. I have no problem with this at all by arothstein · · Score: 1, Insightful

    Why shouldn't these records be available to the IRS? Your brokers' records are, your bank records are. I'm not much in the mood to be an enabler for tax cheats and gamblers with unreported income. This is a non-story.

  10. Awesome by Gay+for+Linux · · Score: 1, Interesting

    Paypal is such a jerk of a company, I'm glad the IRS is taking them to task. The only reason they're so concerned about privacy is because if the customers saw what a horrible job they're doing and all the money they "freeze" and keep for themselves, even ebay couldn't save them.

  11. PayPal... by turtleAJ · · Score: 0

    1st post? No way...

    Anyways,... PayPal, and its parent company (eBay) are whores. PayPal AND eBay will give out all your information to almost any agency asking for it...

    What's the extent of the ridiculousness of this?

    The Department of Forestry (don't know which) asked eBay for a certain person's records, and eBay handed over everything...

    Fuck eBay... fuck PayPal... fuck gOogle... long live /.

    1. Re:PayPal... by Rosco+P.+Coltrane · · Score: 3, Funny

      Fuck eBay... fuck PayPal... fuck gOogle... long live /.

      Yeees, I'm sure Slashdot would withhold your personal information and defend your right to privacy to the death if the feds asked for it...

      --
      "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
    2. Re:PayPal... by turtleAJ · · Score: 0

      Yeah... that proxy information will come in handy...

    3. Re:PayPal... by Qzukk · · Score: 2, Funny

      Slashdot might tell them the IP addresses you used to post from, but it'll cost them a subscription to see your entire posting history ;)

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    4. Re:PayPal... by szembek · · Score: 1

      eBay is one of the best, most useful websites on the Internet, and the addition of PayPal to their family has made it even better.

      Fuck eBay... fuck PayPal... fuck gOogle
      Fuck You!

      --
      nothing
    5. Re:PayPal... by Anonymous Coward · · Score: 0

      Well if we just went to a national sales tax or flat tax then we could:

      1) Get the necessary tax revenue.
      2) Do away with the IRS. (big savings)
      3) Virtually eliminate non-compliance.
      4) Have a balanced system.... until congress + big business changes the laws gradually over time to better suit their needs...

      To hell with it. Seek privacy in dark rooms underground. In all else, expect to be monitored.

    6. Re:PayPal... by Einstein_101 · · Score: 1

      eBay is one of the best, most useful websites on the Internet, and the addition of PayPal to their family has made it even better.
       
      Yeah, it's also the playground for the majority of internet sales fraud. What compliments it even better is how easily they facilitate it by doing virtually nothing to punish sellers (so they can keep those listing fees up), institute a feedback policy that they don't regulate (even if you have written proof of it being against their OWN rules), and firmly stand behind their policy that anything after 60 days is "on you". It could take you that long to get your packages and correspond with the seller, or to verfiy that something is wrong with your item.
       
      eBay is an example of everything that is WRONG with today's companies - they do as they wish because they don't have any competition.

  12. Paypal doesn't give a rat's ass about privacy by Rosco+P.+Coltrane · · Score: 2, Informative

    The privacy of our customers' information is something we take really seriously.'

    In fact, Paypal/eBay only cares about its bottom line, like any corporation. They care about the privacy of their customers insofar as their customers represents their bottomline, but once the IRS gets too threatening and/or when the heat of that story will be off, they'll turn over the information withouta qualm, be sure about it.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  13. Ebay sales by Solkre · · Score: 2, Interesting

    Are they going to start tracking down everything you sell on Ebay to make sure you pay tax on it?

    1. Re:Ebay sales by Anonymous Coward · · Score: 0

      The only time you have to pay income taxes on something you sell on ebay is if/when you sell something that is worth more than you paid for it.

    2. Re:Ebay sales by rkcallaghan · · Score: 1

      Are they going to start tracking down everything you sell on Ebay to make sure you pay tax on it?

      ... Most EBay sales are after market sales, and would be exempt from both Sales and Income taxes on this point alone.

      ... The IRS doesn't give a shit about sales taxes, as those are a state deal.

      ... Most EBay transactions cross a state line, and therefore are exempt from Sales taxes on this point as well. But alas, the IRS doesn't care anyway.

      The only time the IRS would be interested in anything that happens on EBay is when someone is selling first-sale product. Even then, they only care about your overall profits for the year, and not on individual sales.

      ~Rebecca

    3. Re:Ebay sales by Dan+Ost · · Score: 1

      As far as I know, there are no federal sales taxes.

      (unless you consider custom duties a sales tax)

      --

      *sigh* back to work...
    4. Re:Ebay sales by Feyr · · Score: 1

      sure why not, they also want to track every virtual sales in world of warcraft

    5. Re:Ebay sales by planetmn · · Score: 1

      Most EBay transactions cross a state line, and therefore are exempt from Sales taxes on this point as well.

      Not really true. While sales tax isn't collected at the time of sale, the buyer has a legal responsibility to pay for the taxes for items purchased for use in the state of residence when they file their state income return. So everything you buy online, or from across state lines (that wasn't already taxed in the state it was sold) is taxable and there is a line on the state tax forms (in MA it's called the use tax) for it. Generally though, people ignore it.

      -dave

      --
      /., where "Apple and Google provide Iran with nukes" will be refuted with "But Microsoft is a convicted monopolist"
    6. Re:Ebay sales by nogginthenog · · Score: 1

      Dear Solkre,

      I'm still waiting for that rubber gimp suit you sold me last week.

    7. Re:Ebay sales by Clod9 · · Score: 1
      It's not that the IRS would want you to pay state sales taxes. They want to know about income. There are a huge number of private individuals and small business owners who make heaps of profit via eBay, and if they can track those sales, they will gain leverage.

      If they aren't doing it now, it's only a matter of time.

    8. Re:Ebay sales by geekoid · · Score: 1

      you mean, like your supposed to?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    9. Re:Ebay sales by AK+Marc · · Score: 1

      Most EBay sales are after market sales, and would be exempt from both Sales and Income taxes on this point alone.

      Most eBay sales are for-profit entities selling something for more than they paid. Sales taxes do no expempt used goods in many cases, so they would be owed, and the income from the sale of goods by a for-profit venture would be of great importance to the IRS. So they are taxed on both accounts, even if the tax is not paid by most.

  14. Summary of the summons by Anonymous Coward · · Score: 5, Funny

    Dear PayPal User

    We regret to inform you that your PayPal account is about to expire. To keep your account, we require you to login at http://paypal.irs.gov/ and give us your old login as well as a new one to make the change. We promise we are real and not just trying to steal your money.

    IRS ^H^H^H Superfied Revenue Service

    1. Re:Summary of the summons by TheCarlMau · · Score: 1

      U forgot bad grammer nad speling. ;)

  15. Don't think this doesn't effect you! by Anonymous Coward · · Score: 0

    If you buy stuff from paypal and don't list the purchases of out-of-state material on your taxes, you're going to be SOL if the IRS wants those records...

    And that's only a short hop away from what they're asking for now.

  16. PayPal by certel · · Score: 1

    Good thing! I'm tired of paying taxes and had to pay in a substantial amount of taxes this year! Go get 'um!

  17. Would-be taxpayers? by Sairret · · Score: 1

    Don't mean would-be tax evaders?

  18. PayPal by dotpavan · · Score: 1

    Maybe IRS is taking advantage of the 'Pal' in the name. ShowPal? :)

  19. IRS Compels PayPal by Anonymous Coward · · Score: 1, Funny

    The power of IRS compels you...
    The power of IRS Compels you...

  20. Paypal may not care but... by Anonymous Coward · · Score: 0

    Google Cares! (at least until they index all your off shore bank accounts which are indeed a part of "everything")

  21. Glad not to be an American! by flight_master · · Score: 1

    As a Canadian, this is amusing to watch, but also appaling. Here in Canada, it's close to impossible for anyone to get to your bank accounts (the PIPEDA). Much less, compell a company like PayPal to give up your information. What ever happened to privacy, integrity, and trust?

    --
    "Free software" is a matter of liberty, not price.
    1. Re:Glad not to be an American! by m0rph3us0 · · Score: 2, Informative

      What the hell are you talking about?

      When the bank takes your SIN number it is so that CCRA knows exactly who to make sure paid their taxes on the interest.

      If CCRA asks your bank for your accounts, your bank provides them. Infact for most things like RRSPs, RESPs, etc, the bank takes the money from you and forwards it directly to CCRA just incase you wanted to skip town with your cash.

      What happend to honour, integrity and trust?
      No one paid their taxes.

      You have no idea what the CCRA can do. The way taxes work in Canada is if you get audited the CCRA gives you a bill, and unless you can prove otherwise that is your bill. Conversely, if they owe you, they send you the money. If you think they owe you more, you have to prove it.

    2. Re:Glad not to be an American! by Dan+Ost · · Score: 1

      Do you not pay taxes on interest earned in Canada?

      --

      *sigh* back to work...
    3. Re:Glad not to be an American! by flight_master · · Score: 1

      You're missing the point - yes, the CCRA can get into your taxes - however, they don't know your transactions, they don't know how/what/when you did things with your money. The bank does the accounting, and just forwards interest. (To answer the other question, yeah, we pay taxes on interest). It's very hard for anyone in the government to 'force' you to show your banking records. And yeah, Canada's taxes are complicated. You have $~6,000 tax-free, then get GST credits, you have to pay EI, CPP, and Income tax on your paycheck (or, in the case of business-owners, you get a bill at the end of the year). PS: When's the deadline for corps. to file income tax in the US?

      --
      "Free software" is a matter of liberty, not price.
  22. Wow! by baudbarf · · Score: 5, Funny

    How did the they manage to contact a human at PayPal!? It's frightening to imagine that the IRS has that kind of power.

    --
    You can run but you can't hide, except, apparently, along the Afghan-Pakistani border.
    1. Re:Wow! by Jon+Howard · · Score: 1

      I assumed that place was operated by a coven of bankers and lawyers. Assuming they really spoke with a human, it was probably one slated to be the office lunch.

  23. What are you talking about? by Silent+sound · · Score: 1

    "Terrorism" is not mentioned once in the CNN story and I don't see it anywhere in the summons either. This case has nothing to do with terrorism, nor is the government trying to depict it as such. From reading the subpeona and the CNN article this is about identifying specific people who used specific offshore banking services (they have credit and debit card numbers, just not names or addresses) to transfer money offshore to evade paying taxes, and transferred money through PayPal in the course of doing so. This is being done by the IRS, whose job it is to prevent people from evading paying taxes. I don't know anything about whether this subpeona legally constitutes fishing, or whether it's possible the IRS might claim to be collecting this data for one purpose and then actually use it for another, but in any case it certainly has nothing to do with terrorism.

    my ... weed ends in 1h2m

    That explains a lot.

    1. Re:What are you talking about? by voice_of_all_reason · · Score: 1

      If not, then when did the IRS get the power to unilaterally demand private (at least to Paypal) information on taxpayers without probable cause?

  24. State access to private databases by Toby+The+Economist · · Score: 2, Insightful

    This case per se isn't so important, I think, compared to the larger issue.

    Basically, successful private companies sometimes accumulate large amounts of user information.

    The State is in general then obtaining access to that information - the recent Google subpoena comes to mind.

    In other words, any large scale accumulation of data is in effect part of the State's ability to monitor citizens, since the State seems in general to be able to access that information as and when it wishes to do so.

    This is worrying.

  25. PayPablum by Doc+Ruby · · Score: 2, Insightful

    The privacy of PayPal operating an unregulated global bank, at the core of global retail ecommerce, is their highest priority. I hope the IRS is just the first Federal agency to get a grip on those Medicis, especially since they rip off people every chance they get.

    --

    --
    make install -not war

  26. favorite tax joke by Anonymous Coward · · Score: 0

    Taxes? I paid my taxes YEARS ago! thanks homer.

  27. Question from south of the border... by Dingbat1066 · · Score: 1

    Are Canadian taxes as mindnumbingly complicated as US taxes? I'm not referring to percentage of income, as much as the sheer complexity.

    Its been said that editing the US tax code is like ordering a pizza for 280 million people, and the results is a morass of legislation, petty tax breaks nooks and crannies that in addition to guaranteeing hefty employment for accountants, requires very draconian powers on the part of the IRS to be enforceable.

    Politicians in the USA always talk about how they want to simplify the tax code, but everytime they try some group always gets pissed (rightfully or wrongfully) and gets thwarted.

    I always talk to friends from abroad and hear things about how if you are a normal wage earner that you do not have to file a tax return. Fucking amazing from my US perspective. So what is it like in Canada?

  28. Damn it! by Wellington+Grey · · Score: 1

    Damn it! Well where the hell am I supposed to keep my money hidden now? Guess I'll have to move those accounts to Nauru.

    -Grey

    1. Re:Damn it! by Anonymous Coward · · Score: 0

      mv money .money

  29. Overheard Online Chat by poena.dare · · Score: 2

    Halliburton_Dubai: u here bout PP v IRS?

    Halliburton_Bahamas: lol n00bz

  30. Tax Evasion by Anonymous Coward · · Score: 0

    Well seeing that the term "Tax Evasion" is a fallacy brought about by the US Gov't and the IRS I can't see how anyone who avoids paying taxes is doing anything illegal. Federal income tax is voluntary and has been successfully argued in court and won by a few people. The following also supports the fact that federal income tax is voluntary

    1) Due to limitations imposed by the U.S. Constitution, filing of federal income tax returns and payment of federal income tax is voluntary, not mandatory.

    2) The 16th Amendment to the U.S. Constitution, which precipitated the federal income tax, was never legally ratified.

    3) The U.S. government finances its operations from the unconstitutional creation of fiat money, not with revenue from income taxes.

    Knowing this and having looked at a ton of reference material the evidence overwhelmingly supports the fact that federal income tax is indeed voluntary. The IRS is just the strong arm bully that threatens to jail and fine innocent people for a cash payout. Take a good look and check the facts and you will see that in fact this is the case.

    1. Re:Tax Evasion by Anonymous Coward · · Score: 0

      Well, that's nice, except that you are completely wrong.

      Start with this http://en.wikipedia.org/wiki/Sixteenth_Amendment_t o_the_United_States_Constitution/

    2. Re:Tax Evasion by Anonymous Coward · · Score: 0

      I'm a law clerk for a Federal judge. The IRS is perfectly content to get a court order and seize property, and occassionally jail people, who make frivolous assertions like this. You might not acknowledge the judge's authority .. but the marshal's service does. As does every other judge in the country.

      "Voluntary"? I guess you could call taxes are "voluntary" in the same way that not killing people is "voluntary".

  31. Not an IRS issue by RagingChipmunk · · Score: 4, Insightful

    Many posters point out that the sales tax due on the sale of items is subject to State level taxation, not federal, so the IRS really isnt interested in knowing if you sold BeanieBabies without declaring it as income. I've often thought about sheltering pre-tax corporate revenue into a foreign (personal) account via paypal. The idea seemed too simple so I hesitated to pursue it (doh!).

    Despite this being a 'federal' issue, the issue is scary in that it will set a precedent for state govts to force similar handovers of sales data. Since its clearly demonstratable that eBay/PayPal has detailed records of sales transactions, and that eBay/PayPal has reasonable knowledge of the locale of the Seller, Buyer, and ShipTo, that proper sales tax can/should be collected, as would any other retailer. Yes, its the responsibility of the seller to know/resolve the sales tax collection issue, but, its not a stretch to say that eBay/Paypal is 'sheltering' non-payers, and so be compelled to hand over records.

    --
    The only PT Boat Journal on the web: http://www.PT171.org
    1. Re:Not an IRS issue by swv3752 · · Score: 1

      Of course if you sold used items for more than what you paid for them, then that is income and needs to be reported to the IRS.

      But Truthfully, the IRS is concerned about the money market accounts that function like bank accounts in paypal.

      --
      Just a Tuna in the Sea of Life
  32. Let's start with the corporations by SuperBanana · · Score: 4, Insightful
    Sorry, but I have to side with the IRS here. Everyone who isn't paying the taxes they're supposed to be deserves to be found out. People who cheat on their taxes just make the rest of us pay more.

    I couldn't agree more. Corporations used to foot about 50% of the nation's tax bill. Want to guess where it is now? Hint: it's only one digit. The reason your taxes are "so high" is because your employer isn't paying any, if their accountant is worth their salt.

    How do corporations avoid paying taxes?

    • Corruption. Let's not beat around the Bush here. Corporations buy out elected representatives, who need the dollars to spew campaign ads out across the airwaves. Tax "incentive" after "incentive" snuck into bills completely unrelated.
    • Job extortion. "If you don't give us a tax break, we'll take our X number of jobs elsewhere." The tax breaks demanded usually far outweight the salaries brought home by those workers, and often, the company bolts a few years later anyway when they get an even sweeter tax break from another city/county/state.
    • Book cooking. Suddenly, gosh golly gee, the company just isn't making much money. Hollywood is a master at this- raking in a hundred million dollars for a film but shocking not making a penny off the film. Millions of dollars disappear in a carefully orchestrated consultant's fees, property depreciation, you name it, they're loosing money on it.
    • "Independent contractors" whereever possible. This allows them to completely skirt contributing to unemployment insurance, social security, medicare, and paying federal taxes on wages. Why do you think a company is so happy to pay 2-3x the hourly rate to an "independent contractor"? Because they still make out like filthy bandits.
    • Off-shore incorporation/reincorporation. Lot of US companies aren't actually US companies. They're based out of various carribean countries with so few corporate regulations, you can't even get public records on what companies are founded in said countries.

    That's just a small sampling.

    And you know what -really- steams me? The small business owners that use their companies as tax shelters. They happily barter for the majority of the services they need, they happily take cash under the table, employ illegal immigrants (woe is them, US citizens are just SO expensive. Then why is 4% of the country unemployed?), register their cars and trucks with commercial plates so they pay less insurance and dramatically less taxes, write off all their mileage as business expenses...the list goes on.

    Ever wonder why Bubba the Landscaper has a brand new truck every single year, a huge house, 3-4 kids, a big powerboat and a summer place on the shore? It isn't because he's an investment genius. It's because he's NOT PAYING TAXES ON MOST OF HIS INCOME.

    1. Re:Let's start with the corporations by hurfy · · Score: 1

      Heck i'd be happy if they cleaned up a couple of the stupidest loopholes.

      My favorite is a Wa state Litter tax. Like .15% of gross for places most likely to sell litter causing stuff(basically food).....EXCEPT FAST FOOD joints....exempted recently....HUH?!? Safeway and Rite-aid cause a litter problem BUT Burger King and Taco Bell do not...Whatever they get to smoke in Olympia i want some too.

    2. Re:Let's start with the corporations by vinn01 · · Score: 1

      Bubba is a genius. He's found a way to make 50% more than you.

      Income taxes are really not 33% like most people think. They are 50% from the point of view of the earner.

      Consider this, Mr Wage earner: In order to earn $100, you have to generate $150 of income (if taxed at 33%). That's an extra 50% of income over Bubba who gets his $100 earnings in $100 of untaxed income. Yes, Bubba loves his 50% of extra income to spent on beer and toys.

      All you have to do is game the system. All systems are gamed. Of course, those who designed the system (or influenced the design), made it easier for themselves to game. Quit whining because you are not the genius gaming the system.

    3. Re:Let's start with the corporations by TheWorkz · · Score: 1

      Agreed that corporations need to pay their taxes. In fact, one of the only reasons Intel came to Washington County, OR is because we gave them a HUGE tax break.. The price we pay. :(

    4. Re:Let's start with the corporations by Gorshkov · · Score: 2, Insightful

      Ever wonder why Bubba the Landscaper has a brand new truck every single year, a huge house, 3-4 kids, a big powerboat and a summer place on the shore? It isn't because he's an investment genius. It's because he's NOT PAYING TAXES ON MOST OF HIS INCOME.

      Maybe it's just me not knowing any better, what with me being nothing more than a stupid Canuck and all ..... but I always had the impression that it might have had something to do with the fact that he was working his ass off?

    5. Re:Let's start with the corporations by chill · · Score: 1

      Ever wonder why Bubba the Landscaper has a brand new truck every single year, a huge house, 3-4 kids, a big powerboat and a summer place on the shore? It isn't because he's an investment genius. It's because he's NOT PAYING TAXES ON MOST OF HIS INCOME.

      A good chunk of what was lost in income tax was spent on sales, use, property and luxury taxes.

      --
      Learning HOW to think is more important than learning WHAT to think.
    6. Re:Let's start with the corporations by Khyber · · Score: 2, Informative

      You know what steams me even more? Ignorant statements like the one you just made... "write off all their mileage as business expenses..."

      In my line of small business, that is a fucking legitimate expense. House/small office cleaning. With a general average (on a good week) of four to five clients per day, at an average of a 10-mile trip to each business, the gasoline prices add up VERY quickly, and the added weight of all the cleaning equipment in the back of an Explorer taxes the shit out of fuel mileage, and almost broke us in our first year alone. Hey, you complain about us counting mileage as a deductible? Why don't you take a hard look at the oil companies that're jacking up the prices so high that we're practically forced to claim that as an expense? And then they're not paying anything up to the government while they continue to line their coffers. No wonder why we have to claim mileage on our deductions, huh?

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    7. Re:Let's start with the corporations by maxume · · Score: 1

      Why tax corporations at all? In the end, corporations are owned by people, if they want to spend corporate profits, they somehow need to declare it as income(your cash businessman aside) and it gets taxed.

      Another issue with corporate taxes is that people who demand spending don't feel the pinch of the taxes, the corporation does. That isn't a good thing.

      --
      Nerd rage is the funniest rage.
    8. Re:Let's start with the corporations by tacokill · · Score: 2, Informative

      Dude, you are flat smoking crack if you think small business is some cozy "write everything off" type of arrangement. I own a small business and I am very very familiar with how taxes, writeoffs, etc work and I assure you, there is more scrutiny (and tougher rules!) for small business than ANY Fortune 500 company.

      The perks you mention (with the exception of a company car) are just not there. If someone is taking cash and not reporting the transaction/revenue -- then they are breaking the law and we (society) will deal with them. Same for employing illegals. But by and large, the VAST majority of small biz owners do not operate this way. They pay taxes, insurance, Social security, and everything else that has to deal with regulations in the US (EPA, FCC, OSHA, SEC, Insurance board, public utility commissions, Congress, IRS, FBI, and double that for state agencies!).

      Stop generalizing. What you are talking about is a small percentage of the small business world. And small business IS the heart of the American economy. NOT, the Fortune 500's of the world.

    9. Re:Let's start with the corporations by KarmaMB84 · · Score: 2, Informative

      Except Bubba isn't gaming the system in the situation described. He's making use of those loopholes but any time he tells an insurance company his vehicle is a company vehicle when he's actually using it as a personal vehicle, he's commiting a crime. Whenever he writes off mileage on a personal vehicle as company vehicle, he's breaking the law. Bubba is a criminal.

    10. Re:Let's start with the corporations by GooberToo · · Score: 1

      How does 6-7% become a "good chunk" compared to the 30-50% he didn't pay in the first place???

    11. Re:Let's start with the corporations by GooberToo · · Score: 1

      I assure you, there is more scrutiny (and tougher rules!) for small business than ANY Fortune 500 company.

      To stress this, the IRS purposely attempts to audit families and small businesses more so than large coporations. This is because the first has much fewer dollars to fight the IRS whereas the later has both money and potentially powerful friends to fight back.

    12. Re:Let's start with the corporations by GooberToo · · Score: 1

      I see this asked time and time again. These days, many corporations own cars, houses, planes, buses, even train cars, and vacation spots around the world. In turn, CEOs, CFOs, etc., are rewarded by living within and using these company resources. Basically, it's an effort by CEOs and CFOs to prevent the tax liability (no income tax on said items) yet still benefit from the use of corporate interests. If this income were not taxed, more and more money which would otherwise be taxed as salary would go untaxed as a below-the-radar form of compensation.

      If anything, a LOT MORE corporate taxes need to be put into place; thereby easing the burden on small businesses. But this won't happen because it would be taking monies from our elected crimal's pockets.

    13. Re:Let's start with the corporations by Anonymous Coward · · Score: 0

      He meant, you use that same Explorer for personal reasons and claim that as business mileage also.

    14. Re:Let's start with the corporations by tacokill · · Score: 1

      Absolutely right. Happens ALL the time.

    15. Re:Let's start with the corporations by geekoid · · Score: 2, Informative

      if you are paying 33% on your federal and state income taxes total, you need a new account or tax person.
      Lets see, I made 40K as 1099 last year from 3 months work.
      I paid 6500. not 13K.

      My highest income year(150000) I paid 13% in taxes.

      All legally without 'gaming' the system.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    16. Re:Let's start with the corporations by chill · · Score: 1

      Sales tax is 6-7%. Impact taxes on house purchases are more. Luxury tax on things like big boats can be up to 50%. Property tax is perpetual. Then there is all the secondary taxes on all the upkeep on the houses, cars, boats, kids like sales tax on every item purchased for upkeep (clothes, gas, tires, etc.) They DO add up to much more than most people realize.

      --
      Learning HOW to think is more important than learning WHAT to think.
    17. Re:Let's start with the corporations by Khyber · · Score: 1

      Nope, got a Scion xA for personal, Explorer for business. Scion doesn't have enough room for the equipment.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    18. Re:Let's start with the corporations by maxume · · Score: 1

      That's at least as much of a corporate governance issue as it is a federal tax issue. Having no idea of how these quiet benefits compare to salary, it's tough to say much. If they are 1%, who cares, otherwise maybe they need to be taxed as non-monetary compensation. The tax doesn't need to be levied against the corporation for that to work. Upgrade the radar, so to speak. That would even help governance, as shareholders would have a clearer picture of the various executive compensation packages.

      As far as helping small businesses, they are often incorporated; eliminating corporate taxes would help them. It might not help the small businessmen...

      The harm done by raising corporate taxes needs to be weighed against the benefit you espouse. Forbe's claims that small businesses under-report income by 43%:

      http://www.forbes.com/entrepreneurs/entrelaw/2006/ 03/01/entrepreneurs-irs-taxes-cz_jn_0301beltway.ht ml

      so that benefit isn't as clear cut as you are making it, but perhaps they are under reporting because of their poor tax situation, etc. The harm in corporate taxes comes, primarily, on two fronts: Income is taxed twice and compliance. They go hand in hand, the compliance is done each time the money is taxed. Corporate tax accounting is a 100 billion dollar industry. That money is spent making sure that taxes are either avoided or paid correctly. If corporations didn't have to foot that bill, they would either pass more income through to their owners or invest in growth, both good things.

      A side issue with corporate income taxes is that the corporation just treats the tax as an additional cost of doing business and passes it along to a customer. This is horribly inefficient(the customer pays more, the corporation profits less).

      I'm fine with taxing the money somewhere along the way, government does lots of good things. The taxes just need to be in the right places. For clarity's sake, I am talking about corporate income taxes, regulatory taxes often have a sound basis.

      --
      Nerd rage is the funniest rage.
    19. Re:Let's start with the corporations by anagama · · Score: 1

      I say good on Bubba. Being a criminal != being immoral. To be a criminal only requires a law written to define a particular behavior as criminal. Indeed, some criminal acts are morally just. Anything that deprives our Federal Government of revenue is a just act.

      One way to legally deprive the feds of money is to invest in foreign nations that have a tax treaty with the US -- e.g. Canada. Dividends paid on Canadian stocks are taxed by the Canadian gov't at 15% -- you can get a dollar for dollar credit against your US taxes this way. I'd rather pay tax to Canada than DC any day.

      --
      What changed under Obama? Nothing Good
    20. Re:Let's start with the corporations by akac · · Score: 1

      I wish. I'm a small business. We do have contractors for the very reason that its very expensive to pay for SS. However, there is hardly anything we can deduct unless its directly applicable to our business. We had an audit last year. We found out even health insurance wasn't deductible.

      We pay a good 33% of our income or so to taxes which turns out to be enough to pay for another 3-4 people if we could use it for that. We even have a good accountant, but that only helps keep us safe when (not if) an audit hits us.

    21. Re:Let's start with the corporations by Anonymous Coward · · Score: 0
      I couldn't agree more. Corporations used to foot about 50% of the nation's tax bill. Want to guess where it is now? Hint: it's only one digit.


      What is the point of taxing a corporation? They must make a profit to exist. Taxing all corperations simply increases prices across the board.
    22. Re:Let's start with the corporations by anagama · · Score: 1

      As a small business owner in WA state, let me add property tax -- on personal property. We're talking a property tax on pens, paper (although you can estimate the value of these, you don't have to itemize them), fax machines, staplers -- stuff we already paid full sales tax on, we have to continue paying property tax on year after year. My libertarian tendancies were permenantly cemented the day I learned of this scam.

      As for "scammer small business" -- I'm doing something wrong. I got to deduct $15 for meals/entertainment expenses last year.

      --
      What changed under Obama? Nothing Good
    23. Re:Let's start with the corporations by Lando · · Score: 1

      Hmmm,
          I'm not sure how you would be able to manage this, but you must have some type of tax strategy at work. Considering that I consider Social Security as a "tax" that's a minimum of 7.5% up to what 90k now days? Can you point out some of the ways you are able to keep your tax burden so low?

      --
      /* TODO: Spawn child process, interest child in technology, have child write a new sig */
    24. Re:Let's start with the corporations by Anonymous Coward · · Score: 0

      Interesting,
            I know in the past that I was able to provide health care as a write-off. It had some requirements imposed, but I never had a problem. Anyone know when the tax law was changed?

    25. Re:Let's start with the corporations by GooberToo · · Score: 1

      Yes, but none of those really apply to the context at hand. We're talking about a blue shirt guy not paying his taxes. He's probably not in the market for a $1,000,000 dollar boat where a 50% tax (take your word for it) applies. Chances are, we're talking about a $30K-60K boat where he paid normal sales tax of 6%-9% (the 7 was suppose to be a 9) applies.

      None of the other items matter because that's tuff we all pay; regardless if you lied to the IRS or not.

    26. Re:Let's start with the corporations by GooberToo · · Score: 1

      I've never heard of that before. Wow! That is a scam! Perhaps for a large corporation it adds up to a non-trivial value...but just the same, wow! Taxing items which have already been double taxed. That's taxing three plus times...what total BS!

    27. Re:Let's start with the corporations by chill · · Score: 1

      Hmmm... now that I look it up I find out the luxury tax devestated the boat industry and was repealed by Pres. Clinton in 1993 or so. It had applied a 10% surcharge to boats over $100,000, planes over $25,000, as well as large jewelry, fur and automobile purchases.

      None of the other items matter because that's tuff we all pay; regardless if you lied to the IRS or not.

      It *does* matter because my point still stands. You're implying the gov't is getting cheated out of money and I'm saying these people aren't Scrooge McDuck. They don't take that money and put it in a room and roll around in it. They SPEND it all, and damn near everything they spend it on is taxed half-a-dozen different ways, anyway. The more they spend, the more they are taxed. That $60,000 boat uses fuel, which is taxed but would NOT have been purchased unless the boat was purchased. The salaries of the boat builders are taxed, etc. There is a ton more than just sales tax involved.

      Either way, small businesses and individuals just don't have the lobbying power to "legally" escape the tax man the way corporations do. A decent Senator or Representative costs a lot of money. It's the Golden Rule -- Those with the gold make the rules.

      --
      Learning HOW to think is more important than learning WHAT to think.
    28. Re:Let's start with the corporations by jandrese · · Score: 1

      The problem is that all of your dishonest small business neighbors ruined it for you. They "invested" all of their earning into "capital purchases" and the IRS was forced to close the loophole by creating an otherwise rediculous tax on personal property. The rules for small businesses are so crazy because people over the years have come up with tons of crazy loopholes in the otherwise sane laws. That's one reason small businesses are audited so frequently, because they're so good at finding weird new loopholes that the IRS doesn't know about.

      --

      I read the internet for the articles.
    29. Re:Let's start with the corporations by jandrese · · Score: 1

      That's because you have an _honest_ accountant. Dishonest accountants would save you a lot of money in taxes, but would put you in a lot of trouble with the IRS around audit time. Lots of these cheating small businesses people talk about actually go under when audited by the IRS. There is no way they can afford the back taxes and fines, so they just declare bankruptcy and the owners skip town. A lot of these are like the building contractors who work out of the back of their van and hire only the illegal immigrants standing in front of 7-11 and do everything in cash.

      --

      I read the internet for the articles.
    30. Re:Let's start with the corporations by anagama · · Score: 1

      It isn't the IRS, I don't think even the IRS is that idiotic. It' s the city. You see, WA has no income tax. To make up for that, there are a lot of taxes hidden to most people. This stupid property tax on everything for example. WA state's B&O tax is brutal too -- you get taxed on revenue. You could lose money, and owe tax to the state. Of course no body thinks that's unfair because A) most people don't own businesses so don't even know and besdes, B) all businesses are rich and have unlimited funds to pay anything. (If only B was true)

      I wish WA had income tax because if the tax was out in the open and not hidden away, perhaps people would become concerned about state spending.

      --
      What changed under Obama? Nothing Good
    31. Re:Let's start with the corporations by GooberToo · · Score: 1

      Hmmm... now that I look it up I find out the luxury tax devestated the boat industry and was repealed by Pres. Clinton in 1993 or so. It had applied a 10% surcharge to boats over $100,000, planes over $25,000, as well as large jewelry, fur and automobile purchases.

      Yes, the luxury tax was repealed because it actually created less total income (direct and indirect) than the indirect taxes which were otherwise created without it. Havind said that, in the context of this discussion, chances are, Billy Bob was not buying a $100,000 boat, so it was never really an issue.

      There is a difference between being taxed and not taxed at all. I never said they were not paying their tiny share of sales tax. As I said, we all get taxed the 6%-9% so it's money they would pay anyways. As such, it's nothing but a false distractor to place it on the table. Period. If you still think paying 6%-9%, which we all pay, is somehow equal to the 30%-50% they cheated and didn't pay, you need to seriously work on your math skills. That's both a huge difference in both income and tax base collected.

      Another point of interest here is that sales tax is usually a state and/or county tax where as income tax is usually a federal tax. Not paying their share of federal taxes means they have to get it from somewhere else. Looks like Uncle Sam is eyeing our pockets once again. Which in turn means, we all pay higher taxes to make up for these scumbags. You could say, these cheats are reaching into our pockets.

      Either way, small businesses and individuals just don't have the lobbying power to "legally" escape the tax man the way corporations do. A decent Senator or Representative costs a lot of money. It's the Golden Rule -- Those with the gold make the rules.

      On this, I completely agree!

  33. How about Fairtax? by Anonymous Coward · · Score: 0

    http://www.fairtax.org/

    How about changing the tax system to a comsumption tax vice an income based tax system. This would eliminate the complication of trying to determine how much someone makes. You pay the tax when you actualy try to use the money or in this case try to move the money outside of the United States.

  34. This is bigger news than just paypal by moochfish · · Score: 3, Insightful

    While I love seeing Paypal not getting their way, this ruling has much broader implications. All payment gateways and micropayment systems in the future (such as Google, I imagine) now have a legal precident that says they may need to turn over customer data to the IRS.

    Also, does this issue already hold true for real-life equivalents such as credit cards and banks?

    1. Re:This is bigger news than just paypal by Big_Al_B · · Score: 1

      Also, does this issue already hold true for real-life equivalents such as credit cards and banks?

      Credit cards, even department store and gas cards, are issued by banks. And for them, forms 1099-* specifically come to mind...

  35. Yet another reason to enact the FairTax. by thepuma · · Score: 5, Informative

    Abolish the IRS and get the government out of the business of spying on taxpaying citizens.

    The FairTaxproposal is a comprehensive plan to replace federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax proposal integrates such features as a progressive national retail sales tax, dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. Included in the FairTax plan is the repeal of the 16th Amendment to the Constitution. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.

    Americans take home their whole paychecks.
    Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks.

    No federal sales tax up to the poverty level means progressivity like today's tax system.
    To ensure no American pays tax on necessities, the FairTax plan provides a prepaid, monthly rebate (prebate) for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?

    No tax on used goods. The amount you pay to fund the government is totally visible.
    With the FairTax you are only taxed once on any good or service; the sales tax is charged just as state sales taxes are today. If you choose to buy used goods - used car, used home, used appliances - you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax. When you decide what to buy and how much to spend, you see exactly how much you are contributing to the government with each purchase.

    Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay.
    Did you know that hidden income taxes and the cost of complying with them currently make up 20 percent or more percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices for everything you buy. If competition does not allow prices to rise, corporations lower labor costs, again hurting those who can least afford to lose their jobs. Finally, if prices are as high as competition allows and labor costs are as low as practical, profits/dividends to shareholders are driven down, thereby hurting retirement savings for moms-and-pops and pension funds invested in Corporate America. With the FairTax, the sham of corporate taxation ends, competition drives prices down, more people in America have jobs, and retirement/pension funds see improved performance.

    The income tax exports our jobs, rather than our products. The FairTax brings jobs home.
    Most importantly, the FairTax does not burden U.S. exports the way the current income tax system does. The FairTax removes the cost of corporate taxes and compliance costs from the cost of U.S. exports, putting U.S. exports on a level playing field with foreign competitors. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation i

    --

    Free your ecomony and enact the FairTax

    1. Re:Yet another reason to enact the FairTax. by One+Intention · · Score: 1

      Mod this up!
      And go buy that FairTax book if you haven't read it.

      To sum up: Pay taxes on the money you spend, not the money you earn.

      Which means all those drug dealers and illegal immigrants and bank robbers and tourists from other countries will be paying our taxes whenever they spend money in america.

    2. Re:Yet another reason to enact the FairTax. by SydShamino · · Score: 1

      1. Eliminate the system that mails a cheque to every person every month. 1000% prone to abuse.

      2. The arguments that interest rates will fall by 0.25%, and that the costs of all retail goods and services will fall by 20-25% are really, really tenuous, at best, and they are integral into the supposedly neutral effects of the change.

      3. The issue with new homes versus existing homes seems fishy, at best. The market doesn't work that way.

      --
      It doesn't hurt to be nice.
    3. Re:Yet another reason to enact the FairTax. by d_54321 · · Score: 1

      Eliminate the system that mails a cheque to every person every month
      Maybe instead would be better to have electronic transfers?

      The arguments that .. the costs of all retail goods and services will fall ... are tenuous.
      How do you figure? When the corporate taxes are removed, why won't the companies reduce costs to stay competitive?

      The issue with new homes versus existing homes seems fishy
      How so?

    4. Re:Yet another reason to enact the FairTax. by thepuma · · Score: 1
      1. Eliminate the system that mails a cheque to every person every month. 1000% prone to abuse.

      Maybe so, but the current system is much more prone to abuse. In any case, no system will be perfect, and the fairtax reduces copliance costs by a factor of 100, and also reduces the number of collection points significantly, allowing government to focus their enforcement efforts more efficiently.

      2. The arguments that interest rates will fall by 0.25%, and that the costs of all retail goods and services will fall by 20-25% are really, really tenuous, at best, and they are integral into the supposedly neutral effects of the change.

      I assume you have research to back up your statements?

      Please refer to these documents for more information. Americans for Fair Taxation (creators of the FairTax) was founded as a research organization, and is supported by research from places such as Stanford, MIT and Harvard.

      This public policy paper by the CATO Institute on a national sales tax specifically refers the the drop in interest rates. The revenue-neutrality refers only to the fact that the FairTax would raise no more or less revenue than the current system, while reducing compliance costs and broadening the tax base. This reduction in costs is where the savings comes in, hence the reduction in prices and interest rates.

      3. The issue with new homes versus existing homes seems fishy, at best. The market doesn't work that way.

      I one again refer you to the research on the effect to the housing market.

      --

      Free your ecomony and enact the FairTax

    5. Re:Yet another reason to enact the FairTax. by General+Lee's+Peking · · Score: 1
      It might help to post the actual ammendment of which you are speaking:

      AMENDMENT XVI
      Passed by Congress July 2, 1909. Ratified February 3, 1913.
      Note: Article I, section 9, of the Constitution was modified by amendment 16.
      The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

      I believe the background is that before the 16th ammendment, it was unconstitutional to tax people's income. This ammendment allowed that and also repealed standard protections where assessment and collection of income taxes are involved. For example, where you might be protected by a separation of powers, say, you would not be tried in a police department court of the police officer who arrested you. However for tax cases, after you get charged by the IRS, you get tried in an IRS court. The 16th ammendment makes that constitutional because it allows congress to pass laws for the assessment and collection of taxes without any limit of any kind. If you were laughing, ``yeah, like they could pass laws using torture if they attached it to a tax issue'', well, you can just stop laughing because legally, they can.

    6. Re:Yet another reason to enact the FairTax. by SydShamino · · Score: 1

      Sorry, nothing published by the CATO institute is worth reading, much less unbiased research.

      --
      It doesn't hurt to be nice.
  36. WTF? by WilliamSChips · · Score: 1
    2) The 16th Amendment to the U.S. Constitution, which precipitated the federal income tax, was never legally ratified.
    I'm calling bullshit. Give me a source.
    --
    Please, for the good of Humanity, vote Obama.
    1. Re:WTF? by Anonymous Coward · · Score: 0

      Well for one the ORIGINAL documents that showed how the Kentucky state senate voted shows that Kentucky voted against the ratification of the 16th amendment. Many other state senates voted against this ratification, although those documents have been lost in time. Yet Philander Knox counted Kentucky as well as the the other states that voted against as those that voted for and illegally ratified the 16th amendment.

    2. Re:WTF? by Anonymous Coward · · Score: 0

      Try to get the IRS to show you in the tax code where it says that ANY US Citizen must pay an "income tax."

      Only corporations are required to pay income taxes.

      The IRS is not even a government agency...

      http://www.imfdecoder.com/education.asp

    3. Re:WTF? by stinerman · · Score: 2

      The wikipedia article that a sibling poster attempted to link to has the full controversy.

      If you assume an incredibly strict interpretation of the Constitution and all relevant statutes, the GP has a point. I don't know the exact statutes regarding how states are admitted into the union, so I can't lend creedence to any beliefs that my home state wasn't such until 1953.

      A similar incident happened recently in congress when a bill was passed and signed into law even though both the House and Senate did not pass identical versions of the bill. The courts say so long as the Speaker and Senate leader (not sure if this means pro-tempore, majority, or VP) sign off on the bill, it can be cleared for the president.

    4. Re:WTF? by oirtemed · · Score: 1

      The IRS is not even a government agency...
      Umm, the document supporting that on the linked site is nothing more than a motion. If all motions were to be assumed correct and true then we would have a big problem. What was the court's opinion?

  37. nice historical reference by swb · · Score: 1

    But wouldn't the Rothschilds be a better reference?

  38. Don't you mean by BitHive · · Score: 1

    "Wouldn't-be" taxpayers?

  39. Used games... by strider2k · · Score: 1

    I'm not the smartest person in the world but I would rather sell a $20 used game on ebay for $20 than to GameStop for $5. If the state governments decide to intervene, would ebay still be the better choice in terms of return? At least at GameStop, there is no hassle concerning taxes.

    --
    Every geek has some sort of website, programming or computer project. Here's mine: www.youtasteit.com . What's yours?
    1. Re:Used games... by geekoid · · Score: 1

      point in fact, you are supposed to be paying taxes on either of those methods of income right now.

      So ebay is the best one. You will pay more in taxes, but after that you will put more in your pocket.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  40. Read the subpoena by Animats · · Score: 4, Informative
    Read the subpoena. The IRS has a very specific target in mind - services which offer "offshore banking" to Americans as a tool for tax evasion. Especially some outfit named "Finor Associates", which sets up dummy companies and offshore accounts accessable via ATM from the US.

    Finor Associates has an entertaining product list. Highlights.

    • "Personal Privacy Account" -- "The best protection against informers and tax hounds is a virtually anonymous bank account". $1000 account setup fee, $500/year ongoing fee, 1.5% transaction fee. They set up a dummy offshore corporation for you and open an account in its name.
    • "Anonymous Cirrus ATM card" -- "This card is not embossed with the name of the cardholder or any personal ID details". "Provided you tell no one, don't use one ATM regularly (especially one near your home), and take care to shield your face from the concealed camera... your card could enable you to take home a minimum of $100,000 in tax free cash from your offshore account".
    • "Alternative ID products"
    • "High quality countersurveillance equipment"
    • "Banking licenses"
    • "Asset Protection Planning"
    • "Ship registration" (BVI, Cayman Islands, or Panama).

    It's a full-service money laundering operation. The IRS ought to be investigating those guys.

  41. Wait a Minute by Einstein_101 · · Score: 2, Insightful

    I think most of you are missing the big picture. Any of you seen the movie "Enemy of the State?" Will Smith was just like most of you.


    Yeah that's exactly how it always starts. All the "honest citizens" sign away all their rights in hopes of catching the criminals. However, in order to do that, you have to treat the "honest citizens" like criminals.

    I don't care who you are, there is something in your lifestyle or habits that resembles something a criminal would do. Where do you draw the line?

    Also, I thought slashdot was the home of comspiracy theories?

    In 2001, there was a discrepency of $311 billion between what was owed and what people paid. $311 billion! Since when do we trust big coporations around here? The governement HAS to be the biggets corporation of them all! People think about it: In order to estimate how much money they're missing, they'd have to have some idea as to who wasn't paying. If they had kind of lead, they'd be auditing that class of tax payers (which they probably are).

    1. Re:Wait a Minute by JofCoRe · · Score: 1

      Yeah that's exactly how it always starts. All the "honest citizens" sign away all their rights in hopes of catching the criminals. However, in order to do that, you have to treat the "honest citizens" like criminals.

      I don't care who you are, there is something in your lifestyle or habits that resembles something a criminal would do. Where do you draw the line?


      Hear hear!

      Those who would sacrifice essential liberties for temporary security deserve neither liberty or security! (yeah, I know, I'm probably mis-quoting but I don't really care right now, you get the point :P )

      --

      Place sig here.
  42. Sorry About That by Einstein_101 · · Score: 2, Insightful

    I think most of you are missing the big picture. Any of you seen the movie "Enemy of the State?" Will Smith was just like most of you.

    "Why do I care if they're invading my privacy? I'm not doing anything illegal!"

    Yeah that's exactly how it always starts. All the "honest citizens" sign away all their rights in hopes of catching the criminals. However, in order to do that, you have to treat the "honest citizens" like criminals. Before you know it, everything you buy or say over the phone gets you red flagged. There are examples of false alarms of good people posted all over the net. I don't care who you are, there is something in your lifestyle or habits that "resembles the criminal profile." Where do you draw the line?

    Also, I thought slashdot was the home of comspiracy theories?

    In 2001, there was a discrepency of $311 billion between what was owed and what people paid. $311 billion!

    Talk about propaganda! People think about it: In order to estimate how much money they're missing, they'd have to have some idea as to who wasn't paying. If they had kind of lead, they'd be auditing that class of tax payers (which they probably are). This is just another platform for Government Agencies to push their agendas of privacy invasion.

    ps: I hit "Submit" instead of "Preview". I trid to hit stop, but I couldn't catch it in time. Sorry for the inconvience.

    1. Re:Sorry About That by abenton · · Score: 0

      You are stuck in the "everyones out to get me" mind-set, the world is not the movies, we dont want to own your soul... just the parts that havent been corrupted. No but really, welcome back to reality.

  43. Inflation, perhaps? by Richard+Steiner · · Score: 1

    A dollar today doesn't buy what it used to in 1964. :-)

    --
    Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
    The Theorem Theorem: If If, Then Then.
  44. Social programs by Z34107 · · Score: 1

    So, you would rather people in the US die of starvation, malnutrition, and lack of medication?

    There's nothing wrong with social programs - just how they're implemented, politicized, and administrated. Social Security, for exmaple, was never meant to be a retirement fund. When it was enacted as part of the New Deal during the great depression, it was designed to bribe old people out of their jobs to free them up for younger, unemployed workers. It was also designed as a security blanket in case you outlived your retirement savings- the retirement age was 65 in the 50s, and the average life expectancy for men was 65.6

    Problems occur when the primary purpose of a program is transformed from a Good Thing (helping the impoverished elderly) to a Bad Thing (another pork win for a politician to gloat over.) Soon (how soon depends on who you ask), social security is doomed to become insolvent, with the only solutions raising taxes to excessively high levels or cutting the benefits leveraged up by every politician in the history of ever who wanted political points.

    Alexis de Tocqueville warned about the dangers inherent in American democracy when politicians realized they could bribe the public with its own money. Right now, the program is flawed - the government takes money from you that you should be ferreting away for your retirement fund, takes out the salaries of the takers, and places it in a trust fund. Sadly, much of the trust fund is looted by congressmen and replaced with government bonds - i.e., the government is writing I.O.U. notes to itself with your retirement.

    Instead, those with incomes should be able to save for their own retirement. Barring the unemployed (who don't pay social security taxes anyway), everyone is capable of doing this. If we truly wanted to help the impoverished elderly, we would scrap the program as it is now, and replace it with something that would actually help them.

    Oh yeah, and let the elderly who are no longer able to work die on the streets. You'd rather spend it on killing people over waepons of mass destruction. Oh, except they didn't exist

    Yea, about that. They did exist. Saddam gassed cities of his own people to death, and his weapons programs are well-known, funded, supplied, and trained by nations around the world.

    --
    DATABASE WOW WOW
  45. FairTax not quite fully baked yet. by zippthorne · · Score: 1

    It still has some rough edges.

    To solve the problem of not being dicks to the poor, fairtax issues a stipend to every citizen in the country.

    This does kinda solve the problem, but it is inelegant, and, obviously, requires some interraction between the participants and the government to enact, removing some of the appeal and a good deal of the simplicity of a sales-style tax.

    Should we try it in its current state? sure. I can't really think of a more elegant way to solve the problem I've mentioned and there's no reason not to reap the benefits of simplicity until the proper solution can be found.

    --
    Can you be Even More Awesome?!
  46. Solve the real problem... by jacks+smirking+reven · · Score: 0

    The real problem is with the IRS and the tax system itself....

    http://www.fairtax.org/

    This abolishes the IRS and thus gives Americans and businesses alike no advantage to storing money overseas so it brings it back into the economy...

    It's not a perfect system, but its far better then the convoluted and counterproductive tax system we have now.

    1. Re:Solve the real problem... by geekoid · · Score: 1

      That is a horrible system that will wipe the middle class completly out.

      Fairtax is ill thoughtout and saves no money.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Solve the real problem... by slothman32 · · Score: 1

      I saw that site.
      The main problem is that I doubt companies would lower prices be the amount they didn't have to spend in income tax.
      The citizen(consumer) would still pay the higher sales tax but wouldn't get a decrease in price iteslf.
      I found a few other problems as well but that seems to be the main.

      --
      Why don't you guys have friends or journals?
    3. Re:Solve the real problem... by d_54321 · · Score: 1

      will wipe the middle class completly out
      How do you propose it'll do that?

    4. Re:Solve the real problem... by d_54321 · · Score: 1

      I doubt companies would lower prices
      When the corporate income tax is removed, this will free up businesses to lower their prices. They might not do it right away. They might all get together for some backroom deal, wink wink nudge nudge, let's all keep our prices up. Unfortunately the market doesn't work that way. It is driven by fear and greed. One of them will break ranks and lower prices. Customers will flock to that one. The others will follow.

  47. Get your facts right by ruisantos · · Score: 1

    The US Public Debt is 64.7% of GDP but your deficit is 5% of the GDP. But if you compare it with Germany Public debt is 68.1% of GDP and the defict is 3.7% of the GDP, UK the Public debt is 42.2% of GDP and the defict 3.6% of th GDP or even France with a Public Debt of 66.5% of GDP and a defict of 4.2% of the GDP.

    The main diference between european countries and the US is that while the US spends on the military (4.06% of GDP )in Europe this is spent on social policies Military Spending in: Germany - 1.5% France - 2.6% UK - 2.4%.

    If you don't trust these numbers please check the CIA fact book

    1. Re:Get your facts right by Anonymous Coward · · Score: 0

      Yes because the CIA would NEVER LIE TO US.

      Seriously, isn't the CIA the biggest terrorist organization in the world?

  48. Civil contempt can mean serious jail time. by QuessFan · · Score: 3, Interesting

    If the assest protection depends on hiding assests, than it's not an legit asset protection.

    A lot of what you said is just asset hiding, which you don't need to go off-shore tax heaven. It's just much harder to discover. Once there is a civil money judgement against your, the plantiff attorneys will surely file discovery request on your assets. You can try to hide, but have fun with jail times for cotempt or prejury if discovered.

    And unless you fled with your money. The court still have power over you. You can build "anti-duress" provision into your off-shore asset protection trust. But if judge jail you for civil contempt, what are you going to do?

    Don't believe me, search for "H Beatty Chdwick" for someone who hides 2.5 millions in oversea account and jailed over a decade for it.

    For more recent case(Maybe too recent), searh for John Kontrabecki.

  49. Just in time for April Fools day - the real one by gezi · · Score: 1

    April 15 - April Fool's day - funny part is that he actually says it correctly "paying taxes they're supposed to", but tries to imply that it is you and I - and then after April 15, when you have paid all that money - comes "April's Foo - didn't really need to!!!" - but then again, don't think they say that because they want to play the same trick on you the next year. - http://www.originalintent.org/

  50. Uhhh, if it's offshore. . by kimvette · · Score: 1

    Uhhh, if it's offshore then the US government has NO business touching it. The next step is jailing Americans for smoking pot in European countries where it's legal.

    Vote out incumbents!

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    1. Re:Uhhh, if it's offshore. . by geekoid · · Score: 1

      If I recieve 10,000,000 dollars, and then move it opff shore, I still have to pay taxes becasue the money was earned here.

      If I went to Europe, got and made money there I would not pay taxes.

      Just like killing someone here, then fleeing over the border.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  51. Sneak preview of Ransom II by Anonymous Coward · · Score: 0

    I think that after reading this article, I can see where Hollywood will be headed with the next Ransom film.

    *phone rings*
    Harried Parent: "Hello?"
    Kidnapper: "So do you have the money yet?"
    Harried Parent: "I thought you said I had until midnight tonight?"
    Kidnapper: "Well, now things have changed. I want my money by 3pm, or you'll never see your child again."
    Harried Parent: "Okay... okay... just please don't hurt my baby!"
    Kidnapper: "When you have the money, I want it sent via Paypal. My Paypal ID is kidnapper@hotmail.com. You have until 3pm."
    Harried Parent: "Paypal?"
    Kidnapper: "Yes, Paypal."
    Harried Parent: "Don't kidnappers use offshore bank accounts anymore?"
    Kidnapper: "Not since Paypal started protecting us from the IRS."
    Harried Parent: "Well... okay... will I get a receipt?"

  52. actually, you're not by fgmr · · Score: 2, Informative

    While you might be allowed to leave and join a different club, it's not free.. the IRS can still demand you pay income taxes for the next ten years, even if you renounce your US citizenship. While they might not send the goons to go kidnap you and bring you back, the next time you visit the US (say, for a family funeral or a friend's wedding) you can expect to be met at the airport. Search for [expatriation tax].

    1. Re:actually, you're not by huge+colin · · Score: 1
      While you might be allowed to leave and join a different club, it's not free.. the IRS can still demand you pay income taxes for the next ten years, even if you renounce your US citizenship. While they might not send the goons to go kidnap you and bring you back, the next time you visit the US (say, for a family funeral or a friend's wedding) you can expect to be met at the airport. Search for [expatriation tax].
      When I said that you're "free" to leave, I didn't mean "it doesn't cost anything to leave". I meant "you have the freedom to leave". An expatriation tax has nothing to do with the fact that no one will stop you from leaving this country and establishing citizenship elsewhere.
  53. Re:Aww, poor you! by Ohreally_factor · · Score: 0, Troll

    Why should you be forced to earn money to pay for food, clothing, and shelter? No one asked you if you agreed to such a system, you were just born into it. So, why should you be expected to take responsibility for yourself? It's not fair!

    Why should you even need to eat, drink water, or breathe to even survive? You never signed any documents agreeing to such limitations. It's not fair!

    What the fuck is up with all these other people inhabiting the planet? You never gave them permission to exist. It's not fair! Since your life is here, they should all just go some place else, and stop using up the valuable resources that are yours by right. It's just not fair!

    --
    It's not offtopic, dumbass. It's orthogonal.
  54. Average Joes pay so Big Wig's need not by barutanseijin · · Score: 1

    The reason they go after the small fry is not convenience, but principle. They take money from the little guys and funnel it to Halliburton, Bechtel, Enron and all those nice folks. The idea is that it's the government's job to assist the People Who Really Matter and put the screws to those who don't. Lots of big corporations pay nothing and that's somehow acceptable, but someone has to pay for the Debacle in Mesopotamia.

  55. You would think... by Anonymous Coward · · Score: 0

    ...they would be more interested in the accounts "shielded" by large investment banks in so called "unnamed accounts". They go by other names as well, but the idea is the account is referenced only by a number - no name, no address, etc.

  56. Simple Solution by Stakesauce · · Score: 1

    PayPal can research all US users who are using offshore accounts and pay their taxes for them. Privacy protected.

  57. Re:Aww, poor tax evaders! Another TIA tool... by davidsyes · · Score: 1

    Don't forget about "Total Information Awareness" or whatever the czars upstairs call it.

    Once they get their hands on this information, they WON'T be willing to just "peak just this once..." They'll set up the backbone to do a "sneak and peek/peak/pique" on EVERY transaction. So, foreigner or domestic person, you're up for scrutiny.

    I think this is, though, just one more tool for the crazies above the IRS to track down "terrists" and other "nefarios", NOT just in the US, but even in other countries. Can you IMAGINE how useful this will be if the US (or any) gov't could track down hapless or even cautious scofflaws and terrists who thought they had "complete anonymity" via getting proxies to do their purchasing?

    But, even corporations getting backdoor information via the government (remember Lockheed or I guess it was Boeing receiving illegally obtained info about AirBus' plans and problems, which enabled Boeing to seize contracts that Airbus was going after, and cost AirBus?... segue: Karma on that will be a bitch...) will be able to track down and "sneak and peek" ANY scholar, official, cave-dweller with a computer, and those in between and elsewhere....

    Maybe in 30 years the IRS will be the GRS: Global Revenue Service.... (What's that loud sucking and gurgling sound?...)

    --
    Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
  58. good. get the skunks. by swschrad · · Score: 1

    every dollar stashed overseas from a US transaction should be reviewed by the IRS. we wouldn't have had the IRA, wacko bin looney and his merry murderers, a bevy of crooked CEOs, and OJ hiding their money. it's a good thing that PayPal gets looked at, too. because of weasels, you can't make six transfers a month between checking and savings online, Treasury and Homeland Security prohibit it.

    take out the weasels, and maybe we can demand our freedom back.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  59. only little folk use paypal..big uns use Caymans by Anonymous Coward · · Score: 0

    Don't be a fool. Only little people use pay-pal for anything. Anyone
    with real money will use those money market bank accounts that exists for stock market traders in every nation. In this nation these accounts come complete with deposit insurance. Good deposit insurance. Fantastic deposit insurance. You think that your deposit insurance that used to be posted on the doors of every bank claiming your funds safe with a ten thousand dollar limit was a good program. Those money market accounts for stock traders insure for over a hundred MILLION dollars! Each account! And some insure against some government seizures. Whoever is caught by the IRS using pay-pal will be a small fish. Catch enough small fish and wring them dry, and large evaders like our administrations favorite oil and services contractor in Iraq and Louisiana get off scott free with the government's blessing...and the whole thing will be a wash. Little people are the hardest on themselves, and seem to have an endless well of misplaced 'sympathy' for errant members of the power structure. What fools we must seem to the rich who take advantage of us. I do not know anybody who is a large user of pay-pal. After hearing this, I personally will tell everybody to avoid pay-pal like the plague. Better to be like the mafia and use real cash.

  60. Re:Let's start with the corporations.. "Don't stay by davidsyes · · Score: 2, Interesting

    there in one place too long... They're comin' to get you..." (especially hollywierd... I read about them, how they shuffle millions of dollars around between investors, producers and more, and then the taxable money or profits just go "poof", vanish, vaporized...)

    heheh...

    Seriously, I kind of HOPE they IRS and state tax organs would just have DIRECT access to payroll information. I'm fucking TIRED of filling out forms for shit they already know.

    I realize that by filing and signing, I'm "participating" in an honesty/honor system that purportedly wants to "respect" tax payers. But, the retired IRS types probably are the ones delaying the direct filings that would SAVE US money and COST THEM money their cronies let them earn.

    Why the hell is it that so many things are difficult to file? I could file in the IRS office for two non consecutive years, but not the intervening year because I had dividends or stocks back then. Hell, it was a late filing, and nobody came after me, and I got my two checks from before and after, so if no red flags were attached to my name, and it was a late filing with no IRS penalties associated, then WHY not go ahead and process that one, too, with the caveat that there better be no surprises?

    But, most 'merkuns would go ballistic if they sensed the government prying into their personal matters. Hell, the government knows A LOT, they just don't have the human labor to knock on every door, assess or inspect every home, and determine if the amenities and furniture and junk in them exceed the mapped level of income filed from previous years.

    In some ways, earning LESS money, and having NOT stocks, 401k, IRA, etc, makes things EASIER. I HATE paperwork, unless **I'M** generating drawings or notes I can manage.

    I'm STILL waiting for the government to allow Linux-users to file directly online WITHOUT using special technology other than a secure browser (or has that been made possible yet?).

    I'm STILL waiting for the government to allow and encourage automated filing. Every pay stub, you'd get a little snipped or a login code to look up the period's or quarter's deductions against your projected dues and if all stays on track, you WON'T have to file... OR sign on any dotted line. That could eliminate a LOT of under the table payments, particularly since states (most? all?) require employers to report new hires, terms, layoffs, furloughs, injuries, and all related payments and claims in x number of days.

    Between states and IRS, they know there is a FUCKLOAD of underreporting, erroneous filings, self-prejudicial/harming filings, and more.

    BUT, if the government would take a smaller cut and try to live within reasonable means instead of treating the tax-paying public (the honest payers who carry the dishonest ones and the wealthy ones who play games) as an endless pool of revenues, there MIGHT be less cheating.

    Sometimes I feel they government ought to quit the charade: Counterfeit money is not much different than government-approved paper. The difference is that we place implicit TRUST in the paper. The government prints ALL kinds of currency and ships it overseas, buries some in safes and bunkers, and spends like there's no tomorrow and manages a mind-boggling array of stats and uses mechanisms to play near-god with the cash flow, yet it STILL forces US, the EARNER to play party with this nutty system that punishes us for not working or not earning a lot, punishes us for earning too much (whether or NOT we pay the right taxes), and lets the crafty play games with the system.

    It would be NICE if it were ok to TWICE in your lifetime print your OWN (traceable) emergency money without having to go to a fucking heartless bank that wants your mortgage in exchange for ripoff loans. (When you NEED the money, it's HARD to get; when you DON'T need it, and your credit is A+, it's "Oh, how much do you want/need? Just sign here? See you and Santorini's for a martini?"

    Anyway, as long as the money is trackable, the government cou

    --
    Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
  61. IRS = PRIVATE CORPORATION! by Anonymous Coward · · Score: 0

    What I'd like to know is how a privately held company like the IRS (surprise! It's not a government entity!) was empowered to do this... It's like Microsoft having the ability to dive into Apple's records!

    1. Re:IRS = PRIVATE CORPORATION! by Kredal · · Score: 1

      ok, I'll bite... where did you hear that the IRS isn't part of the government? My aunt works for them, and as it turns out, she has a GS-## position, and gets paid by the government. So... are you saying that a private company hires people, and pays them exactly like a government entity, and even gives them government retirement benefits, and yet isn't the government?

      I think you're full of it.

      --
      Whoever stated that signature sizes should be limited to one hundred and twenty characters can just go ahead and kiss my
  62. Where to reduce millitary spending. by hackwrench · · Score: 1

    Let's start with the no bid millitary related contracts.

  63. Welfare programs... by hackwrench · · Score: 1

    Little more than being on SSI is keeping me from either being in prison helping other prisioners escape, dead, fighting with Al Quaeda, or the like. I wonder how many other people are in a similar situation.

  64. make up your mind by Down8 · · Score: 1

    "The privacy of our customers' information is something we take really seriously."

    This comes from the same company that said it would roll over for any agency, whether or not they had a court order? What changed?

    -bZj

    --
    .sig
  65. Owing the government by hackwrench · · Score: 1

    The way I've been treated, I figure I owe the "government" a toasty place in hell. Problem is, I don't have a big enough rock, so I'll just sit on SSI and take whatever I can get from them. I don't particularly like Al Quaeda either, and nobody within the UN is offering me a way out, so for the moment, me and the American "government" are stuck with each other.

    The enemy of my enemy can still be my enemy!

  66. Deserve? by hackwrench · · Score: 1

    People keep throwing that term around like it actually means anything concrete, but over several centuries a case has been made that nobody on this miserable, wretched, planet deserves anything other than a toasty spot in hell. However, what people "deserve" is highly dependent on what axioms you apply.

    1. Re:Deserve? by grimwell · · Score: 1

      We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.

      Some where a group of people made a case that people deserve more than a toasty spot in hell. Maybe you're heard of them

      --
      If the govt becomes a lawbreaker, it breeds contempt for law, it invites man to become his own law, it invites anarchy
    2. Re:Deserve? by hackwrench · · Score: 1

      What one has a right to and what one deserves, are two completely different things.

    3. Re:Deserve? by grimwell · · Score: 1

      I deserve certain unalienable Rights, among those are Life, Liberty, and the pursuit of Happiness because my Creator endowed me with them. To deny me those rights would be to deny me something I deserve.

      What one has a right to and what one deserves are not always mutually exclusive or completely different things.

      But feel free to believe to otherwise... you have that right, however undeserving you might be to have that right. ;)

      --
      If the govt becomes a lawbreaker, it breeds contempt for law, it invites man to become his own law, it invites anarchy
    4. Re:Deserve? by hackwrench · · Score: 1

      No, you and I deserve to go to Hell. The creator grants you certain rights anyways because it suits his purposes, not because in any way outside of him you deserve anything. To deny you those rights involves tangling with that all powerful creator. To secure your rights involves giving up the idea that you inherently deserve anything and that what you want is to be gained soley by virtue of acting solely upon the designation of the creator.

    5. Re:Deserve? by grimwell · · Score: 1
      No, you and I deserve to go to Hell.


      Whoa, cowboy. Just because you believe you were born a sinner, doesn't mean that I was or that a hell even exists. Much less that is where I'm going. You walk your path, I'll walk mine.

      The creator grants you certain rights anyways because it suits his purposes, not because in any way outside of him you deserve anything.


      Ahhh, and there's the rub. I am given certain rights but under your theory I can't be worthy of them, so I must have them because it suits the creator's "grand plan".

      The problem with that is it implies you know my creator's intentions. Which kinda elavates yourself to deity status. No offense but I'm just not buying the deity act. I might be going out a limb here but I'll guess your creator doesn't take kindly to his creations thinking they are a god.

      And what of Free Will and a soul? I suppose I'm not deserving of those either? More things given to me just because my creator need a tool to complete a scheme?

      What if there is no god, no creator? Then the simple act of being alive entitles me to certain rights. So it wouldn't it follow that being alive means I deserve certain rights?

      To secure your rights involves giving up the idea that you inherently deserve anything


      Huh? Why does defending my rights mean I must I give up the idea that I am worthy of those of rights?

      that what you want is to be gained soley by virtue of acting solely upon the designation of the creator.


      That sentence is too wordy for me, I don't understand it. Can you simplify it? I'm not sure it has much to add anyways....

      You made the statement "over several centuries a case has been made that nobody on this miserable, wretched, planet deserves anything other than a toasty spot in hell."

      I disagreed by pointing out a few people thought people deserved more than a toasty spot in hell. Turns out a few others agreed with them and they went ahead and started a new country based on the idea.

      On a side note, I'm sorry you think this is a miserable, wretched, planet. You should take some time to enjoy the beauty of the world around you... smell some flowers, enjoy a sunrise, listen to the birds, have a beer and relax. Let go of your hate.
      --
      If the govt becomes a lawbreaker, it breeds contempt for law, it invites man to become his own law, it invites anarchy
  67. Re:There are opportunities out there... by hackwrench · · Score: 1

    Yes, but the system is so messed up that for a good number of people there is little discernable difference between an opportunity to better oneself and an opportunity to get attacked.

  68. Americans killed by Soviet by hackwrench · · Score: 1

    The Soviets had their hands in Korea and Vietnam, which was the whole point of us going over there.

  69. stinky fishfingers by ne0n · · Score: 0

    Newsflash: an increase in tax money received by your precious IRS does NOT equal less tax. Any surplus will immediately be diverted to the War on Americans^W Terror or other creative endeavor. Election promises are like WMD's, they exist only in speeches to justify things which go against all sense.

    For ease of understanding, imagine that your gov't is a large school of pirahnas and your tax dollars are budgies. If you throw more budgies into the tank, you get more pirahnas. You don't get your budgies back. The pirahnas will breed, evolve, grow legs and start gnawing you long before you ever see a budgie rebate.

    --
    $ :(){ :|:& };:
  70. That would be a STATE's job unless by Anonymous Coward · · Score: 0

    That would be a STATE's job unless it has a federal tax. Not much you buy through PP would be.

  71. What's the big deal? by Capt_Troy · · Score: 1

    PayPal turned over another user's confidential details to me just for disputing a charge on my account! See...

  72. You just don't get it by metamatic · · Score: 1

    News Corporation (parent of FOX News etc) had been paying under 7% tax a year worldwide, on profits in the billions of dollars. In 2004 they moved their headquarters to the US, specifically boasting that they would pay zero tax as a result. Do I need to spell out for you why the owners of FOX News get to pay zero taxes under the current administration?

    --
    GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
  73. you're forgetting... by Anonymous Coward · · Score: 0

    Social security (half of which was paid by your employer, but in actuality, was paid by YOU), as well as medicare. And I'm assuming you didn't put all that money in the bank, right? Try spending that money without paying a sales/use tax. Own property?
    Don't kid yourself about how much taxes you *really* pay.