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The biggest tax cheats: Rich folks

A new study based on unpublished Internal Revenue Service data shows the rich are different when it comes to paying taxes: They hide more of their income.

The previously unreported study estimates that taxpayers whose true income was between $500,000 and $1 million a year understated their adjusted gross incomes by 21% overall in 2001, compared with an 8% under reporting rate for Americans earning $50,000 to $100,000 and even lower rates for those earning less.

http://articles.moneycentral.msn.com/Taxes/AvoidAnAudit/the-biggest-tax-cheats-rich-folks.aspx?ocid=TXT_SPOTP_EN-US_0409_Money_BigCheats>1=33005

Do you feel that this is a true statement? Do you think that rich people are the biggest tax cheats?

 
mrssundin

Asked by mrssundin at 12:09 PM on Apr. 9, 2009 in Politics & Current Events

Level 19 (6,722 Credits)
This question is closed.
Answers (52)
  • Yes, I believe it's true. Not all wealthy people are dishonest, however, they have the resources to get away with it if they want to. I cannot afford to hire a dishonest account to help me cheat, so I wouldn't know the first thing about it.

    I do know quite a few "poor" people who cheat by working under the table, but they're only hurting themselves because in the end they won't be able to get unemployment, worker's comp, social security, or tax benefits for earning a low salary. Not only did I get every penny of income tax back for 2008, I also got a low income credit and child tax credit, which was double what I paid into medicare and social security. So, I would be an idiot to get paid under the table.
    DeTora_Family

    Answer by DeTora_Family at 12:36 PM on Apr. 9, 2009

  • If they can afford the accountants that teach them these tricks there is nothing stopping them but never under estimate IRS .If they get audited they better have the coverage as to how the make the income but afford thing that past the income ?
    hush84

    Answer by hush84 at 12:12 PM on Apr. 9, 2009

  • I heard they deposit money in foreign contries thats how banks are not liable in reporting because it not american banks
    hush84

    Answer by hush84 at 12:13 PM on Apr. 9, 2009

  • I don't believe this is entirely true but for the sake of an arguement lets say rich folks do hide some of their income. They do it because after you make a certain amount of money, you get TAXED TO DEATH! My Uncle out of his own blood, sweat, and tears, has opened several car dealerships in Southern Indiana. He has worked so hard to have what he has and you know what he pays in taxes every year? $70,000! Granted he makes a lot more money than the rest of us but American government has put a glass ceiling on people saying that hey if you make over $250,000 that is too much and you are a greedy pig. It completely contradicts the whole foundation of America...to pull yourself up by your bootstraps and make your life the best you can...but don't make it TOO good cause then we'll punish you for it.
    Ash9724

    Answer by Ash9724 at 12:15 PM on Apr. 9, 2009

  • we have a bank account in the cayman islands...where we also have a vacation home. it's perfectly legal.
    Anonymous

    Answer by Anonymous at 12:17 PM on Apr. 9, 2009

  • I am on both sides here, on one hand it is wrong to hide your income. But on the other hand, the rich are pretty much being punished for being successful. This is all assuming if this statement is in fact true.

    BEXi

    Answer by BEXi at 12:18 PM on Apr. 9, 2009

  • I totally agree Ash. I see alot of business people that have to spend it or they are taxed on it. So they buy multiple vehicles for the business or stay long on business trips and do a little site seeing or whatever. They also are the ones that give to people in the community for the tax break and support nonprofit events. Just because they make more doesn't mean they should have to pay $70,000 in taxes!!! That is rediculous.
    ria7

    Answer by ria7 at 12:20 PM on Apr. 9, 2009

  • Makes me wonder- by taxing the rich outrageous amounts, how does that inspire anyone to be successful and not thrive off assistance? Now a days it seems that sucking the life out of government programs is a far better path than working your ass off for your own money, only to have most of it taken from you.
    Anonymous

    Answer by Anonymous at 12:23 PM on Apr. 9, 2009

  • Beautifully said Anon: 12:23
    Ash9724

    Answer by Ash9724 at 12:32 PM on Apr. 9, 2009

  • Yep 12:23 welcome to our government and Americans have allowed it with all the pacifism..."oh just leave that be"
    tnmomofive

    Answer by tnmomofive at 12:35 PM on Apr. 9, 2009

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