Friday, April 17, 2009

Isn’t Cash Income is Taxed at the Same Rate as Direct Deposits to Your Checking Account?

Steve Benen reviews the political fuss over Senator Richard Burr’s calls to his wife to have their own run on their bank. Steve also notes the following from Brian Walsh, the communications director for the NRSC:

The Democrats' response highlights perfectly the competing views of the two parties when it comes to strengthening the economy.... In just the first three months of this year, Senate Democrats have voted for more spending than the previous Administration spent on Iraq, Afghanistan and Katrina recovery combined so it's little wonder Americans want to keep their hard earned money away from the grips of Washington.

Steve thinks makes no sense. It might make sense if cash income were not taxed. But I have sad news for Mr. Walsh – if your employer pays you in cash, you still have to pay taxes on that income. I’m beginning to wonder if any of our Washington Republicans know anything about even the basic notions of economic policy.

1 comment:

Ben said...

LOL. I'm not just promoting bank runs, but tax evasion as well!