Quote of the day: "The hardest thing in the world to understand is the income tax."- Albert Einstein
I had a dream that sparked a thought that could change the nation!
Now, the dream was that I had been hired by my girlfriend's dad (I don't have a girlfriend) as an executive assistant for his financial management company. Basically, he hired me as an executive based on an idea I'd had that I wondered if it could save him some money.
He's the head of the company, and I asked him if it would be cheaper for his company to hire people at low salaries and wages, and make up for it with giant allowances for clothing, living, food, etc. My thinking was that it would relieve some tax liability for his payroll, and the employees would get the benefit of paying less taxes also. For example, an employee's position would normally pay $80k per year, but his salary is changed to $46k per year with a $2,500 per month sum of allowances for the above-mentioned uses.
So, I had this dream, and I was wondering: is this even possible? Is any of this accurate? I don't know that much about what is taxable income and deductible and whatnot, but it seems like a pretty neat idea. It seems that so much could be covered and rationalized for allowances for a company... the employee's car (transportation to and during work), housing (maybe if not in permanent residence or something), clothing (business clothing, cleaning, etc.).
Now this got me thinking about something else: would a company or person be guilty of tax evasion for this? I mean, as far as I know, tax evasion is when you don't pay your taxes, or report things fraudulently in your taxes... but what about using loopholes like this to pay less taxes? To... evade paying taxes? But, isn't that the point of loopholes and tax attorneys and whatnot? Even the very existence of the IRS and their bullshit laws are primarily designed to stimulate capitalism as well as provide income for the nation, so they're helping as many evade taxes as they are collecting...
Perhaps "tax evasion" isn't the proper term for the "crime." Tax evasion should be what good tax attorneys and accountants specialize in. Maybe the term should be criminalized more to punish people who *gasp* don't want to pay all the taxes required of them. "Tax Refusal." That's catchy.
Tax evasion just sounds so damned appealing.
Thought made ready... Battle Ready... by SinisterNinja
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