you are viewing a single comment's thread
view the rest of the comments
[–] 11 points 1 year ago (12 children)

Dumb question but how can someone be undocumented while also being taxed? Wouldn't being taxed require someone to be documented?

  • source
  • parent
  • hideshow 12 child comments
  • [–] 47 points 1 year ago (1 child)

    If they're using fake papers to work, they're paying income tax (and payroll tax is paid for them as well) but can't file for a refund or unemployment insurance payments. They pay into Social Security but won't be able to collect it (though I think anyone under 50 can probably relate to that).

    When they buy things, they pay sales tax like anyone else.

    They pay their landlady's property tax if renting and pay it themselves if not.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 8 points 1 year ago (8 children)

    The IRS issues "Individidual Tax Identification Number" for undocumented immigrants who don't have a social security number.

    https://en.wikipedia.org/wiki/Individual_Taxpayer_Identification_Number

  • source
  • parent
  • hideshow 8 child comments
  • [–] 1 point 1 year ago (7 children)

    I have to wonder how many would ever use it to file for a tax refund though. Wouldn’t that out them to the government?

  • source
  • parent
  • hideshow 7 child comments
  • [–] 5 points 1 year ago (6 children)

    The IRS normally doesn't share files with anyone. Don't you know the old saying? The best way not to get caught as a drug dealer is to file your taxes.

    If you look at my other comment, undocumented people in the US contribute over $90B in taxes every year!

  • source
  • parent
  • hideshow 6 child comments
  • [–] 2 points 1 year ago (5 children)

    I havent heard that one. That’s rich.

  • source
  • parent
  • hideshow 5 child comments
  • [–] 2 points 1 year ago (4 children)

    How do you mean? The whole point is to encourage people, everyone, to pay taxes. It's a great system. Taxes enforcement should be truly independent from all other agencies to maximize trust and honesty.

  • source
  • parent
  • hideshow 4 child comments
  • [–] 4 points 1 year ago (3 children)

    I just mean that the aphorism about drugs dealers is colorful and amusing. I understand it’s making a real point but it’s also funny.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 1 point 1 year ago (2 children)

    Fair enough. The same saying often goes for sex workers.

    That's how they ended up catching Al Capone, on tax fraud charges.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 1 point 1 year ago* (1 child)

    So why does anyone launder money? Isn’t the whole purpose of that to hide conspicuous flows of cash from illegal activities? If it’s safe to pay taxes on ill gotten gains, why launder?

  • source
  • parent
  • hideshow 1 child comment
  • [–] 1 point 1 year ago

    a) the main purpose is to avoid paying b) because spending a bunch of cash can be suspicious to other agencies that are looking, like if law enforcement is already suspicious and starts seeing a ton of large purchases without a legitimate source of income they will figure out something is up c) because people don't know any better.

  • source
  • parent