News for hackers. Stuff that matters.

A comment on As child care costs soar, more parents may have to exit the workforce. Parent comment

Re:As child care costs soar, more parents may have to exit t... by koliber on Thursday November 02, 2023 @08:02AM (#38112309)
That’s right. It’s because of taxes.

In the first example there are various taxes that you will pay. Income tax. VAT or sales tax. Maybe license fees.

These taxes go to the government, who in turn uses that money in some way.

In the latter two examples tax revenue does not go up.

[ Parent | on HN ]
Re:As child care costs soar, more parents may have to exit t... by nradov on Thursday November 02, 2023 @04:52PM (#38119981)
Barter income is taxed at fair market value. Some people cheat on their taxes by failing to report barter income, but let's not conflate tax fraud with GDP issues. You can't legally avoid income taxes by asking your employer to pay you in firewood or diamonds or whatever instead of fiat currency.

https://www.irs.gov/taxtopics/tc420

[ Parent | on HN ]
Re:As child care costs soar, more parents may have to exit t... by koliber on Thursday November 02, 2023 @05:20PM (#38120322)
You are technically right.

I don’t have the stats handy, but I am fairly confident that a large portion of the barter income is not reported.

[ Parent | on HN ]