Posted: Apr 14, 2012 5:48 pm
willhud9 wrote:Question though: Who is doing the tax evasion? For example, yes shame on the rich corporations but what about the poorer tax evaders, the people who don't pay into income tax or other government taxes in average incomes of around 50,000~? How much tax evasion is done by rich corporations and wealthy people and how much by middle class workers?
Tax evasion is very common amongst small businesses and self employed. My father works in construction, if he does any projects on the side and chooses not to report it no one really knows. Even if the IRS suspected it they aren't going to waste spending huge amounts of money on an investigation over a couple thousand dollars. His paying of taxes could be considered voluntary.
For larger corporations tax evasion probably isn't that big of a problem. Tax avoidance maybe(which is the use of legal loopholes to pay as low rate as possible), but not evasion because it is not uncommon to regularly have IRS agents stationed in their offices auditing their records.