So this is part of a larger discussion that I see as totally absent in the general media, and shamefully absent in the financial media.
- This report describes the President’s tax compliance initiatives that seek to close the “tax gap”—the difference between taxes owed to the government and actually paid. According to Treasury analysis, the tax gap totaled nearly $600 billion in 2019 and will rise to about $7 trillion over the course of the next decade if left unaddressed—roughly equal to 15% of taxes owed. These unpaid taxes come at a cost to American households and compliant taxpayers as policymakers choose rising deficits, lower spending on necessary priorities, or further tax increases to compensate for the lost revenue. The magnitude of the tax gap means that compliance initiatives have the potential to raise substantial revenue, but these reforms also improve tax progressivity and economic efficiency. While roughly 99% of taxes due on wages are paid to the Internal Revenue Service (IRS), compliance on less visible sources of income is estimated to be just 45%.1 The tax gap disproportionately benefits high earners who accrue more of their income from non-labor sources where misreporting is common. Further, the tax gap imposes distortions because of the resources some expend to avoid paying taxes and the incentives created to shift economic activity into certain areas where tax liabilities can be illegally evaded.
Piketty discussed tax evasion and black/gray markets in Capital in the 21st Century as between 30% and 50% of the white economy, and the greatest drag on government funding. Nobody talked about that, either.
I just gave up on blackbootz's discord server because the only conversation I could find there was how governments are powerless and bitcoin is going to propel us to a New World Order where we can live like Somali pirates or some shit. But the reality of the situation is that people generally like the things they get from governments, and generally judge their satisfaction with the expense they pay in terms of the expenses they see others pay.
The tax man cometh, mutherfuckers, and that is to nearly everyone's advantage. I don't know how many of you noticed, but the pandemic switched us from an earned income tax credit for children to direct payments and the fascists are so busy stopping the steal, lambasting Mr. Potato Head and losing their shit over critical race theory that they like, missed the socialism.
Li'l story? I'm trying to wrap my head around providing health insurance for my employees. 'cuz obviously big scary corporations have a real advantage here, right? I mean, that's the common knowledge.
Here's the thing, tho. Subsidies mean my non-professional employees can buy market insurance for $6 a month. They mean my professional employees can buy market insurance for 50% off the rack rate. And if my employees can get insurance through me, they can't get it through the marketplace... which means if I don't want to bone my receptionist out of her $6/mo health insurance, I have to buy her $370/mo health insurance.
My shiny new 5-year-old company has a $40k/yr disincentive against buying health insurance for my employees. 'cuz that's what it's going to cost me to not punish them through misguided kindness.
We're turning left, guys. This whole MAGA thing? bit of a distraction, in my opinion. Massive stimulus has the United States as the only developed economy in the world not in recession
And our massive "let's not call it inflation" inflation makes American goods cheaper abroad.
I know that's not the narrative anyone is voicing aloud. But when you dig into the data shit's gettin' socialist out there.