Tax Fraud Scams
As if we all don't have enough to worry about with identity theft, credit card theft, and outright theft of items being physically taken, tax fraud scams are prolific.
When it comes to tax fraud, there are two categories it can be broken into. The first is what most people think of when they think of tax fraud. People hiding money they make to avoid income taxes and/or avoid paying taxes in other ways is an example. In the last decade, it is estimated that $3 Trillion was lost in tax evasion in America. That's $3 Trillion the government expected to have in order to do it's job. When it doesn't get it, what do you think happens next? That's right...more taxes! Yet, people are going to still continue avoiding them, forever, for a host of reasons. It will never stop, because taxation gives plenty of reasons to avoid it. This is one of the biggest issues with taxes...the expense of taxation itself and how much it actually costs everyone to have more and more taxes.
But, there is another example that lives in the Expense category, one that few people think about, yet many are plagued by it day-in-and-day-out. It's the other type of tax fraud, whereby people pretend to be tax collectors in order to steal your money. It's the reason why I put the word scam after the word fraud, in the title. Regular tax fraud in the form of hiding money should just be called tax avoidance.
Tax fraud scams are nothing short of an epidemic. I get regular phone calls, text messages, or emails nearly everyday from someone claiming to be with the IRS (Internal Revenue Service) because I somehow owe more taxes than I have paid, with a threat to send the cops to my home or delete my social security number if I don't pay. These kind of numbskulls are so prevalent that the IRS issues warnings on their website in the form of updated alerts to the latest scam. They go on to explain how to spot such scams and how to report suspected tax fraud abuse, complete with the tagline of "If it sounds too good to be true, it probably is."
For most people, however, it's something that sounds bad, because then you become worried and might be willing to fork over a credit card number or bank account information. In essence, it's all a form of phishing to get needed information from you so that crooks can later relieve you of that burden of having money. For those who are not paying attention, this can lead to financial disaster. Older folks who are not accustomed to today's digital world are especially susceptible to these crimes and are victimized frequently, which is a sad state of affairs for the human race.
What is the solution to all this? Other than a knock to the head with a moral-stick, Non-Tax revenue is the solution, of course!
With non-tax revenue, there can be no scams, or avoidance. Non-tax revenue is paid voluntarily, except for fines. Short of someone calling to say they are the police and notifying you of a fine you haven't paid, every other form of non-tax revenue cannot be the subject of a scam because no one can say you didn't pay money that is normally paid voluntarily. Likewise, there can be no avoidance, because there is no expectation of payment, only an effort to entice payment. Thus, tax avoidance becomes null and void. If there is nothing to avoid, there is no avoidance. If there is nothing to scam, there can be no scam.
The more taxation we have, the more of a prime situation we set ourselves up in to experience tax avoidance and tax fraud scams. The more non-tax revenue we use, the more we do away with the opportunity for fraud to thrive. Even fines typically need to be paid at the courthouse or city hall. A phone call directing you to give bank account numbers or a credit card would become more suspect.
Taxation provides opportunity for criminals.