So if I don't pay my taxes...then what??

[johnnybeef]

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I'll pay my taxes when

A. We are out of Iraq
B. Our Representives both Republican and Democrat stop being bought corporation whores..
C. We get some fiscal responsibility..
D. Bush is out of office

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You are dumb. Taxes pay for parks, museums, schools, and social security (to name a few things). If you don't pay your taxes you are getting a free ride of the backs of your fellow citizens. If you can live with that, fine, but don't use the current administration as an excuse not to pay. It's just crappy logic.

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while your at it, don't drive on the roads, or use public transportation. in fact, don't go anywhere as the sidewalks you walk on either.

ps. gildwulf, i thought you were canadian

[gildwulf]

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I'll pay my taxes when

A. We are out of Iraq
B. Our Representives both Republican and Democrat stop being bought corporation whores..
C. We get some fiscal responsibility..
D. Bush is out of office

[/ QUOTE ]

You are dumb. Taxes pay for parks, museums, schools, and social security (to name a few things). If you don't pay your taxes you are getting a free ride of the backs of your fellow citizens. If you can live with that, fine, but don't use the current administration as an excuse not to pay. It's just crappy logic.

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while your at it, don't drive on the roads, or use public transportation. in fact, don't go anywhere as the sidewalks you walk on either.

ps. gildwulf, i thought you were canadian

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Dual citizen. God bless America, EH?

[Osprey]

How are you reporting it? Because th IRS wants a blow by blow, session by session breakdown. They strictly say that netting your gambling for the year is not the way to do it. So if you win $100,000 and lose $100,000 over the course of the year, you owe taxes on the $100,000 before any deductions are applied. Not cool.

[Corey]

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How are you reporting it? Because th IRS wants a blow by blow, session by session breakdown. They strictly say that netting your gambling for the year is not the way to do it. So if you win $100,000 and lose $100,000 over the course of the year, you owe taxes on the $100,000 before any deductions are applied. Not cool.

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That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

[Quicksilvre]

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Anyway it would be nice if we lived in a civilized country like Great Britian which logically doesn't tax gambling winnings.

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If you're going to tax things, it's better to tax gambling winnings than things like food or rent.

[Osprey]

Ah, but then there are happy fun states that don't allow gambling losses to be deducted.


That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

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[Krazy Dan]

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That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

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And that is the problem. You end up paying taxes on what is obviously zero income, an infinite marginal tax rate. I call this a useful application of the Laffer curve: it's not that people work less when in higher marginal tax rates, but that people are much less likely to report "income" when it is going to be taxed above 100%.

You have incentive: you don't want to pay tax. You have the opportunity: the IRS doesn't know about your gambling winnings. You have the justification: the tax is over 100% and far from fair. There we go, fraud triangle.

It's the same stupidity with the hobby income. Who reports hobby income unless they can weasel it on a Schedule C? An agreement starting with "Why, yes, Mrs. Fluffenstuff, I'll mow your lawn for $10 per week" certainly won't find its way to Line 21 of Form 1040, even on the tax return of the most honest taxpayers.

[jman220]

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Lol. Nice one.
I actually live in the UK at the moment.
I don't understand though how the US government is expecting taxes from something that is supposed to be illegal. Do they tax drug dealers as well?

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Yes, illegal income is still income and taxable. Its how they got Al Capone, they couldn't prove the crimes he committed, just that he didn't pay taxes on the money he earned from the crimes he committed.

[jman220]

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B. Our Representives both Republican and Democrat stop being bought corporation whores..
C. We get some fiscal responsibility..

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You will never pay taxes.

[TheNoodleMan]

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God bless America, EH?

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That just looks so weird in text.