Comments on: Paying Cash, Avoiding Tax, An Ethical Dilemma?

By: JustSayin

JustSayin — Thu, 17 Nov 2011 06:03:07 +0000

@Gail.. Not being mean, but you say “he” well, in fact you both seem to have avoided the tax man (you could have said “yes, please I need a receipt”) it would have been as simple as that then you told ppl about “him” but, you seem to forget you condoned the behavior, by not saying “I need a receipt”. People have a CHOICE to either be fair to the unfair tax man, or not. Is it ethical, well who are you or even I to say it’s wrong (we can really only speak for ourselves). There are many people who work paycheck to paycheck that sturggle(even sm business owners). As for my business, I’ve never once thought I’d never “tell all” because for me it’s just how it is. There are many business owners who tell me not to do that, but ya know this is the way it is for me. I ened up owing a ton of money, it su*ks to have to owe when I am a single parent, no Medical, No Reiterment and now all my savings gone… and for what I worked 80+hrs I slept maybe 2-3hrs a nite I told the truth and I have nothing to show for it. No Medical, No Reitrement, No savings.. Yes, loved what I did, but is it worth it, not after seeing my tax bill.. (would I do it different) Truthfully I’m not sure now. But, now I understand why those other business’s didn’t report “every” transaction. Question, if you sell something on one of the many selling sites or have a yard sale, do you report it to the governement as income? I bet not… Is that ethical? There are greedy people but there are also people who are just trying to get by. JMO

By: Nay

Nay — Wed, 16 Nov 2011 15:16:53 +0000

Being a new business owner (my daughter) she of course is small business who sells beads. As of now the beads she purchase do not reflect the overhead of credit card purchases, (most pay cash, few with checks) but, she knows that her “new” inventory will eventually have to reflect the higher cost becasue she will need to obtain a merchant acct soon. For those paying cash, is it wrong to give them a 2% to 5% discount (that would equal to several single beads and in some cases a full strand, and would be worth using cash) She’d like to give this incentive not to avoid but, to keep the cost down for the customers, who really love the fact her beads are at the lower price. Once she begins accepting Credit Cards she’ll have a much added cost including the terminal, internet (the transactions go thru the net) the cost of paper for the terminal, the surcharge for each transaction, not to mention *chargebacks even by mistake would really hurt her as well as stolen cards) For a small business to absorb that kind of cost is tremendous, larger businesses can better absorb that sort of thing (not good for either). So, for her to be able to give a discount for using cash it would really help her. But, is it legal to give the discount for using cash? We understand, there are ppl who do it for the wrong reason, but there are ppl who do it and pass the savings on to their customers.

By: Gail

Gail — Tue, 04 Oct 2011 00:45:16 +0000

I have had the unfortunate experience of buying a car service from a municipal councilor who also has 2 side businesses. He immediatley asked if “I needed a bill”, meaning you don’t pay tax and either will I.

I have had a lump in my throat since, knowing he happens to be the councilor for my own town.

I mentioned it to a couple others whose attitude is very much the same….if you can get way with it, why not?

BEG TO DIFFER. This is not just some guy and furthermore, without a paper trail we may not pay tax but we also have no leg to stand on shuold the service or product fail.

What world do we live in.

By: aaa

aaa — Mon, 12 Sep 2011 23:48:50 +0000

Is the government doing everything ethical? waging wars from our tax money to kill inocent people all over in the world. They just make you fool into believing that you are doing something wrong by not paying taxes. I pay taxes when I get paid my salary then when I go to buy something, I have to pay tax again. So oveall I am paying ( 25 + 9 = 34%), I will try to save money whereever I can and screw the government.

By: Mike Rieselman

Mike Rieselman — Sun, 11 Sep 2011 17:42:11 +0000

What a bunch of ignorant experts. It is always better to pay cash. If you buy a house you can get up to a 40% off the asking price, a car, the same. Do not deal with anyone who won’t take cash because they are criminals. Tax has nothing to do with it. You save points, interest, agent fees, credit bullshit and all of the other crooked charges banks have used to steal a trillion from the taxpayers. Anyone who does not want cash is a liar or a fool. Paying your taxes is a law everyone is held to and it has nothing whatever to do with this discussion.

By: Anonymous

Anonymous — Wed, 31 Aug 2011 14:23:35 +0000

You’re the gov’t favorite tool, old worry about everybody else guy!im gonna start a cash only business and never pay taxes to our piece of shit gov’t, they will just waste it anyway..fuckyourself

By: Donna

Donna — Sat, 12 Feb 2011 04:44:53 +0000

Moral and Ethical? The government…I don’t think so. We are obligated to pay taxes, but I think we are at the point where we have to provide our own tax breaks. The business person has to do what he has to do and the consumer does too. I just wish those who are laying around getting fat off the fat of the government would get up and exercise their right and obligation to pay taxes too.

By: Alec

Alec — Tue, 16 Nov 2010 19:57:38 +0000

So if you made 4 or 5 dollars under minimum wage it’s wrong to try and skirt taxes sometime just to feed your family? Tipping with cash helps the waitor or waitress. I see it as an ethical issue to force some family to go a night without food just because you feel that the corrupt government should take their money to go france. I see you “CK” as a monster and Jim wang as a visionary. We should all help other people instead of being stuck up because someone out there has helped you and asked for no compensation.

By: Conan

Conan — Tue, 12 Oct 2010 21:57:35 +0000

From a legal perspective, you are always supposed to pay your taxes. But from a moral perspective, I am beginning to feel like sending money to washington is like sending money to a crackhead. If you know they are out of control and just plain stupid, why should there be a moral obligation to send the money there?? Again, the legal question is settled here.. but I am speaking strictly from a moral/pragmatic perspective.

In many ways, I feel like by paying taxes, I am contributing to a fat, unhealthy monstrosity, who is totally out of control.

By: Brian

Brian — Fri, 23 Jul 2010 14:19:25 +0000

Here is the moral question. Is it right that the 30-40% of people who don’t pay taxes get to vote? If they were not allowed to vote how would the governments expenditures change? I would bet they would be lower and the taxes would be lower. This doesn’t justify the act but the government has opened Pandora’s box by bailing out the big guys. I’m sorry but between local, state, federal and sales tax, I’m well north of 40%. Enough is enough. It is like being a frog in water that is slowly raising to a boil.

By: not

not — Mon, 22 Jun 2009 19:33:14 +0000

I usually apologize to people when paying for service with a check. With the comment….they are just going to give it to some thug dictator or banker anyway.

By: Lisa

Lisa — Fri, 29 May 2009 13:42:18 +0000

It seems kind of like a catch 22. I mean you pay for clothes or food sometimes in cash, so how would that be “no paper trail” or illegal? I mean I still have to pay the sales tax. I got my employee discount at work, but still have to pay the taxes, which is only fair. I was told, so that I wouldn’t back out of my order, that I had to pay cash..no problem. You see, my company makes and maufactures windows, so if someone places an order, then like days after it’s already been in production, backs out. That company is left with windows that were special ordered. SO If someone walks into my office RIGHT NOW to make an order, and they don’t have an account with me (nor have ever done business with me) I do require a cash deposit, which is then used TOWARD the sale. Most of these customers pay up front in cash. If I offer them a discount, they get it off the pricing BEFORE I calculate the sales taxes. So I believe there is no illegal activity in doing this. ONLY if the company failed to pay the taxes on that sale.

By: Pugs

Pugs — Tue, 04 Nov 2008 21:12:53 +0000

I see what everyone is saying…But let me pose this question to you…I was at a boutique store that offered 50% off the entire store due to the owner going out of business. At the time of purchase I took my credit card out to pay and the saleswoman said, “Cash only.” So, I inconveniently had to go to a nearby ATM, being that they would not hold my merchandise and take out the cash. After I paid I checked my receipt and saw that although I paid cash, I was still charged $40.00 in tax! So, what do you think? Is it at all ethical or legal to say Cash only and then charge the tax on top anyway??? P.S. I am not at all happy with that so called “deal!”

By: Schwartz

Schwartz — Wed, 02 Jul 2008 17:53:53 +0000

I work with restaurants on a daily basis as a consultant.
ALL independently owned small businesses hide income one way or the other.
If you want a world where every small business owner pays every penny and uses plastic instead of cash, get used to eating at applebees/chili’s, and shopping at Wal-mart. Your small towns will dry up, all local flavor will cease to exist. If you don’t believe me, it’s already happening. With the rising cost of food, the horrible economy where people don’t eat out as much, and the fact that no American kids want to work hard small business owners are working their tails off to scrape buy and they’re closing.
Ya think the national deficit’s gonna go down if they start paying 100%?
Think Again.

By: Golbguru

Golbguru — Tue, 27 Mar 2007 20:05:06 +0000

I rarely use cash for most large transactions (in which tax really matters) but if a merchant presents me with a huge discount on a cash purchase, I would probably go for it. I don’t think I am going to worry about “will the merchant pay his taxes if I pay him cash”…I don’t consider that as my responsibility.

Taxes should be a part of everyone’s personal accountability. If a business wants to evade taxes, it will do it in some way or other (whether I pay in cash or not). Of course businesses should pay taxes, but it’s not my prerogative to oversee how they handle their taxes. If I start making other people’s honesty as my prerogative, I would probably have to stop dealing with half the people in this world (For example, I buy stuff from eBay, make payments through Paypal…etc., how and why should I worry about what people are doing at the other end of such transactions?)

Jim, also I think there is a difference between a cash transaction without a receipt and a cash transaction with receipt. Or am I mistaken? As far as I perceive it, only cash transactions without receipts carry the burden of unaccounted cash…and cause problems like Tim mentions in the first comment :”the problem with this is that it also gives you no recourse in the event something you purchased, etc, does not pan out.”