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Originally Posted by SorryImNotJames
Anything you buy from stores or gas stations can be paid with cash. Even your rent can be negotiated (tell your landlord you'll pay half in cash or something).
Sure. But instead of asking me to trust you, why don't you actually add it up?
Let's say you're a fat ass and buy $100/day worth of groceries and gas. And because you're mad balla living in Manhattan, you live in a $4,000/month apartment and pay half of that in cash.
What does that add up to over a year?
How long would it take you to get rid of $500k?
Let's add going to the casino and drinking $500 worth of alcohol every Friday night, and then spewing off $500 at the poker tables every week.
Now what does that add up to over a year?
Now how long would it take you to burn through $500k?
The average American reports $50,000/year in income. That's $140/day. If you think that the average waitress is hiding 2-3x that in cash spending every day, lol.
All the big things that one wishes could be paid off, like mortgages and cars and college funds, require a paper trail.
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If you want to get deeper, you can set up various legal entities
Bzzt. One of the stipulated rules is to avoid the legal system.
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It only gets easier to hide money from the Fed as you get richer. Look at how the richest American dodge taxes, the latest Panama papers give you just a brief glimpse at it.
You're confusing money with income. Offshoring money may be damaging to a politician's career but it's not illegal and only questionably immoral. People don't hide from the government that they do it, they just don't want it publicly disclosed. And most people do it with post-tax money. It may be a way of obfuscating foreign income but you're going to face scrutiny moving money in and out of the country, so basically you're creating a pool of officially-earned money you can't easily access.
When someone talks about a waitress trying to hide domestically earned income so she can spend it domestically, tax havens are a red herring.