Wednesday, October 29, 2008

New study: Rich Cheat More On Taxes

Forbes magazine quotes a new study based on unpublished U.S. Internal Revenue Service data showing the rich are different when it comes to paying taxes: They hide more of their income.

"Those with true incomes of $200,000 or more received 25% of all income, but accounted for 40% of net underreported income and 42% of underreported tax in 2001, the new analysis finds."

and it added this:

"The previously unreported study estimates that taxpayers whose true income was between $500,000 and $1 million a year understated their adjusted gross incomes by 21% overall in 2001, compared to an 8% underreporting rate for those earning $50,000 to $100,000 and even lower rates for those earning less."

and this:

"The main reason for the income-related cheating disparity: Higher income folks receive more of their income from sources that are easier to hide, including self-employment earnings; income from rents, partnerships and S corporations; and capital gains."

We can't find a link to this study, unfortunately; apparently it has not been officially endorsed or even released by the IRS. Political dynamite, you see -- at a rather sensitive time.


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