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View Full Version : How The Tax System Helps The Rich And Robs The Poor


grab_grab_the_haddock
February 22nd, 2009, 09:43 AM
http://www.motherjones.com/politics/2006/04/our-indefensible-tax-system

David Cay Johnston has showed in his book, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich—And Cheat Everybody Else, few people have really closely examined the intricate loopholes, devices, dodges, and shelters that allow corporations and superrich individuals to pay shockingly little in taxes. Sometimes even the IRS can't decipher the most complex tax-dodging schemes, and few journalists have the knowledge needed to cover the tax beat adequately.

As a result, most Americans remain unaware of the ways in which the wealthy cheat the system. And often, even when the public—and Congress—does become aware, nothing happens. Corporations and the superrich can continue to use tax dodges long after they're made illegal because tax law enforcement is so badly underfunded. Congress routinely cuts funding for tax auditors to save money, although as Johnston explains, the result is that the government often loses more revenue in uncollected taxes than it saves by firing IRS employees.

shawners
February 22nd, 2009, 11:31 AM
Actually the IRS goes after small businesses because they cant afford to fight it, and big business have tons of lawyers who can exasperate the IRS. I seen it done so many time before. Home business get certified letters from the IRS and have to fax proof of stuff all the time. IRS is just a dog shit company funding the banks so the gov can get loans from them and pay them back with interest.

carpefile
February 23rd, 2009, 05:15 AM
How true it is................:icon_salu

I was audited by these goons once bout 10yrs ago. 10 years of records I had to come up with they requested. Law says seven but Hey. they're the Gov remember?

Anyway, it turned out they should have left it alone, I hired a CPA and he tore them a new asshole every step of the way.......:drunken_s

They ended up giving me a refund of like $1800.............:icon_thum

I've since kept the CPA and have had no problem out of them.


13603

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Wow, same thing happened to me three years ago, with nearly the same results. When I started my business, it was on a shoestring, so like most everything else at that time, I did my taxes myself.
By the time I was audited, my biz had grown beyond my micromanaging ability and I had handed off taxes and payroll to my very competent CPA.
Thanks to me being a worry wart and a dumbass to boot, I had overpaid taxes for 4 years.

The IRS ended up owing me 18k. :icon_salu