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P. 52
month, and pays a premium of $1,000 the tax system is what I call The Trap. And what if the employer is in on it,
per month. It feels tight, so Mom Often a young couple will start off with too? He pays worker A $40,000 but
decides to work and earns $30,000 by one spouse working and one in school, quickly understands that he could just
babysitting a lot. It turns out they will and they qualify for government pro- as easily pay worker A $20,000 and pay
owe $15,380 of that amount in taxes. grams. When the second spouse the other $20,000 to A’s brother, B,
Fifty-one percent of her earnings will go enters the workforce, however, their who is entirely self-employed. Now both
to the government! That is just taxes – effective tax rate is enormous. At that A and B can show that they earn only
before any government welfare/hand- point it hardly pays to work. When you $20,000 each and are thus eligible for
out considerations. Should she put build welfare into the tax system, you a slew of benefits. The employer is ben-
herself under pressure and neglect her create tax rates that are literally efiting as well, since he can pay less
home and children for that? grotesque. than the market rate and has a happy
employee who is not asking for a raise.
Case Number Three Win-Win Cheating The loser is the government, which is
Dad earns $160,000, and two of the Do you think that our tax system shelling out a fortune in undeserved
children are in college. This Mom also encourages honesty? Do you think that welfare. Do you really think that immi-
starts to babysit and brings in $20,000 all the cleaning ladies, lawn cutters, and grants have not figured this out? How
on the side. Because they file jointly as construction workers report their entire would the government ever know?
a married couple, her income is taxed income because they are ethical?
according to her husband’s high tax People who have the potential to push Perhaps there is something more
bracket. The government therefore their income over $100,000 will do so, nefarious is going on here as well. Why
takes $13,996 of her earnings in taxes. but for the rank and file, the system is have I never heard politicians talk
That is a rate of 70%. Yes, 70% is “fair.” an invitation to hide income. Low- about making cleaning ladies pay their
Does it make any sense for Mom to income workers and immigrants quick- fair share? Does the IRS ever send
babysit and come home with $6,000 ly realize that earning money off the auditors to the people with lawn mow-
out of $20,000? books can make them a fortune. They ers in their pickup trucks and ask to
figure out that they can report just see their W2s and tax payments? Does
The Trap $20,000 of their $40,000 in earnings the government ever go out to the day
Another scenario that emerges from and take advantage of welfare benefits. laborers sitting next to Home Depot to
check on their income tax payments?
Planning a
Simcha?
For cake, challah, cake platters,
herring and dips
443-529-0313
DISTRIBUTORS BBB Distributors, LLC ©WWW
44 All products are Yoshon and Pas Yisroel, under the
CRC of Brooklyn and the OK.
Minimum orders required.
u www.wherewhatwhen.com u
per month. It feels tight, so Mom Often a young couple will start off with too? He pays worker A $40,000 but
decides to work and earns $30,000 by one spouse working and one in school, quickly understands that he could just
babysitting a lot. It turns out they will and they qualify for government pro- as easily pay worker A $20,000 and pay
owe $15,380 of that amount in taxes. grams. When the second spouse the other $20,000 to A’s brother, B,
Fifty-one percent of her earnings will go enters the workforce, however, their who is entirely self-employed. Now both
to the government! That is just taxes – effective tax rate is enormous. At that A and B can show that they earn only
before any government welfare/hand- point it hardly pays to work. When you $20,000 each and are thus eligible for
out considerations. Should she put build welfare into the tax system, you a slew of benefits. The employer is ben-
herself under pressure and neglect her create tax rates that are literally efiting as well, since he can pay less
home and children for that? grotesque. than the market rate and has a happy
employee who is not asking for a raise.
Case Number Three Win-Win Cheating The loser is the government, which is
Dad earns $160,000, and two of the Do you think that our tax system shelling out a fortune in undeserved
children are in college. This Mom also encourages honesty? Do you think that welfare. Do you really think that immi-
starts to babysit and brings in $20,000 all the cleaning ladies, lawn cutters, and grants have not figured this out? How
on the side. Because they file jointly as construction workers report their entire would the government ever know?
a married couple, her income is taxed income because they are ethical?
according to her husband’s high tax People who have the potential to push Perhaps there is something more
bracket. The government therefore their income over $100,000 will do so, nefarious is going on here as well. Why
takes $13,996 of her earnings in taxes. but for the rank and file, the system is have I never heard politicians talk
That is a rate of 70%. Yes, 70% is “fair.” an invitation to hide income. Low- about making cleaning ladies pay their
Does it make any sense for Mom to income workers and immigrants quick- fair share? Does the IRS ever send
babysit and come home with $6,000 ly realize that earning money off the auditors to the people with lawn mow-
out of $20,000? books can make them a fortune. They ers in their pickup trucks and ask to
figure out that they can report just see their W2s and tax payments? Does
The Trap $20,000 of their $40,000 in earnings the government ever go out to the day
Another scenario that emerges from and take advantage of welfare benefits. laborers sitting next to Home Depot to
check on their income tax payments?
Planning a
Simcha?
For cake, challah, cake platters,
herring and dips
443-529-0313
DISTRIBUTORS BBB Distributors, LLC ©WWW
44 All products are Yoshon and Pas Yisroel, under the
CRC of Brooklyn and the OK.
Minimum orders required.
u www.wherewhatwhen.com u
