Why People Cheat on Taxes

one_dollar_bill_cheater.jpg image by lowbeyond

Three months ago I wrote a post about taxes and people getting paid under the table.  I thought of that post yesterday when I talked to a Dad that is in a financial mess.

He has two kids from his first marriage.  Through a court order he pays 28% of his net check for child support.  He is re-married with twin girls and is looking at another divorce.  If the mom gets custody she will get 28% of what is left plus half of any daycare expenses and unpaid medical bills.

So if he's netting $1,000 a week, he is left with $720 after he pays mom #1.  Mom #2 would get $201.60 plus in this case, an extra $100 a week for daycare.  That leaves him with just over $400 a week.  He has to get a new place to live with room for the kids to spend the night.  Plus he has a car payment along with all of his other bills.

To make up for his loss he is trying to work overtime, but just learned that he has to pay child support on that too.  As a result he's thinking about taking a new job where he'll get cash under the table.  This way his wages can't be garnished and even though his hourly rate is less than the current job, he will net way more and the OT he works won't be traceable.

This post isn't about child support or Dad's having the screws against them.  But it does help me realize why people do cheat on their taxes by getting paid cash and while I'm not going to blog about how hard a tax increase would be for me and my family, I do get why some people feel the need to cheat.

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Legal Tip Of The Day from Chicago and Maplteon attorney Peter LaSorsa: If someone in the workplace says something to you that you find offensive and the comment is made to you one-on-one or by telephone, go back to  your desk and memorialize it in an email and send it to that person.  For example, if your boss asked you to go out for a drink, send him an email saying, you caught me off guard asking me for a drink while I was in your office, do you
really want me to meet you at so and so's after work?   It's a good way to get evidence for a future discrimination claim.  If you don't, and complain that your boss is hitting on you, your boss will deny it and your case will be over.

 

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  • I'm sure that being paid under the table won't avoid discovery of his income by the various divorce courts (you bringing up the possibility, even though you say the post isn't about child support).

    After having edited several books on this subject, I wonder why someone goes out and has a second family when he can't afford the first. Apparently, this guy is not receiving huge royalties as a Hollywood actor, and thus can afford multiple marriages and mistresses.

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