[ryanmercer]

>Most standard W-2 employees can't afford it, i.e., for most, the cost to hire professional help evading taxes is larger than the taxes they could save.

.

>than saving 20% on $200k/yr income

Erm, that's not a standard W2 employee's income. Not even close. The median U.S. household income was $63,179 in 2017.

[akg_67]

In lieu of the accuracy, you missed the essence.

[ryanmercer]

Many on HN think everyone in the United States makes a 6-figure salary because they do. It's a common theme, I pointed out another potential instance.

40k of 200k doesn't make a big difference, 3016 of 15,080 (federal minimum wage @ 40 hours a week for a year) makes a HUGE difference as does 12,635.90 of 63,179.

Why do you think waitstaff and the like prefer cash tips? because they feel that no one will know if they don't report some or all of that income. Go ask any waiter, waitress, bartender, etc if they want you to give them that tip on credit card where they get taxed or cash where they don't. The same goes for electricians, plumbers, handymen, etc as they'll happily take cash first because they can fudge their numbers some.

[peapicker]

In the US, incomes between $9,701 to $39,475 are taxed at 12%, so the tax on 15,080 is actually $1,810 or 40% less than your estimate... at 63,179 the tax rate is 22% which is $13,899 - only a little higher than your estimate.

At $200K, the tax rate is 32%, so the tax is really $64K, 160% of your estimate. (all for single filers or married filing separately; married filing jointly has wider bands, and the rates are less overall at the given combined income levels)