Meanwhile, in Israel...
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@Mik said in Meanwhile, in Israel...:
Bank deposits of $10K or over have to be reported, yes.
Withdrawals, too?
This Israeli law covers withdrawals and checks. It's all about taxation and the underground economy.
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@Mik said in Meanwhile, in Israel...:
Bank deposits of $10K or over have to be reported, yes.
Withdrawals, too?
This Israeli law covers withdrawals and checks. It's all about taxation and the underground economy.
@Jolly said in Meanwhile, in Israel...:
@Mik said in Meanwhile, in Israel...:
Bank deposits of $10K or over have to be reported, yes.
Withdrawals, too?
This Israeli law covers withdrawals and checks. It's all about taxation and the underground economy.
Not only that, the Israeli law covers also transactions between individuals. E.g., you will not be able to legally pay your plumber or carpenter or electrician with cash beyond the legally prescribed amount in Israel.
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The bitter truth is that a huge amount of small business transactions especially house repairs, plumbers electricians etc are more than happy to take cash, forego a receipt, and give the client a discount so unless one really needs a piece of paper, to make a deduction for example, it’s simpler to just pay cash and millions in potential taxes get lost. If tax revenue increases, then the idea is that ultimately prices of services will drop.
Still very hard to enforce. No one knows how I pay the plumber, and unless someone has a specific desire to report someone, it goes unchecked.
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If you hate your handyman you can use the 1099 now.
As a private person, you are not required to issue a form 1099-MISC. however, the IRS takes the position that you may issue the form if you want to, on the grounds that it helps to increase tax compliance.
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They e made it harder to transact in cash here without reporting, but it’s never been illegal.
One change which I think hit this year is Venmo, etc issuing 1099s.
@jon-nyc said in Meanwhile, in Israel...:
They e made it harder to transact in cash here without reporting, but it’s never been illegal.
One change which I think hit this year is Venmo, etc issuing 1099s.
I've long been a fan of cash, but I'm also a fan of people paying their taxes. I would love to see a switch to national sales tax. I think there are hundreds of millions of dollars in cash earnings that go unreported.
The Brad
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@jon-nyc said in Meanwhile, in Israel...:
They e made it harder to transact in cash here without reporting, but it’s never been illegal.
One change which I think hit this year is Venmo, etc issuing 1099s.
I've long been a fan of cash, but I'm also a fan of people paying their taxes. I would love to see a switch to national sales tax. I think there are hundreds of millions of dollars in cash earnings that go unreported.
@LuFins-Dad said in Meanwhile, in Israel...:
national sales tax
The transition would be a problem.
The money that I would spend on sales tax has already been taxed, way back when I earned it.
I'm sure you can find a lot of politicians that would love to tax that same money again.
But I wouldn't like it.
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@LuFins-Dad said in Meanwhile, in Israel...:
national sales tax
The transition would be a problem.
The money that I would spend on sales tax has already been taxed, way back when I earned it.
I'm sure you can find a lot of politicians that would love to tax that same money again.
But I wouldn't like it.
@Copper said in Meanwhile, in Israel...:
@LuFins-Dad said in Meanwhile, in Israel...:
national sales tax
The transition would be a problem.
The money that I would spend on sales tax has already been taxed, way back when I earned it.
I'm sure you can find a lot of politicians that would love to tax that same money again.
But I wouldn't like it.
You’re probably just old enough to remember you could save every receipt for the year and deduct every penny of sales tax you paid off of your income. Then eventually they took that away in return for bumping the standard deduction, IIRC.
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It's too bad that consumption taxes are so regressive. They are at least simple and elegant.
@Horace said in Meanwhile, in Israel...:
It's too bad that consumption taxes are so regressive. They are at least simple and elegant.
Yeah. Seems like you could make them less regressive by strategically exempting a few classes of things or through targeted refunds.
We do the first in most states with sales tax.
