I just read a news headline about paying for college tuition with points from a credit card rewards program and it occurred to me that such rewards are a form of tax-free income.
Should they be reported as income, though? Why or why not?
No, the IRS considers most credit rewards a discount, and you wouldn't wanna deliberately misfile would you?
If you just paid someone a salary to buy your product, would they have to report it as income?
E.g. if you shop at a store and they pay you for two hours of your time that you spend shopping there, could that be considered a reward or rebate and thus a discount, i.e. because you are spending money there? Or would it have to be considered income and be taxable as such?
0 Replies
maxdancona
1
Reply
Sat 31 Aug, 2019 09:15 pm
Taxes are arbitrary. The state legislature can tax anything. I don't see anything wrong with taxing credit card rebates.
I do think that taxing income (I.e. the kind we work for) is ridiculous. We are disincentivizing productivity. I think most economists agree that the income tax is a drag on productivity.
Taxes are arbitrary. The state legislature can tax anything. I don't see anything wrong with taxing credit card rebates.
I do think that taxing income (I.e. the kind we work for) is ridiculous. We are disincentivizing productivity. I think most economists agree that the income tax is a drag on productivity.
You have to have taxes in order to abate them to stimulate certain forms of productivity. If there were no taxes, abatement would not be a tool for government to use.
Quote:
"Friends," said he, "the taxes are indeed very heavy, and, if those laid on by the government were the only ones we had to pay, we might more easily discharge them; but we have many others, and much more grievous to some of us. We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly; and from these taxes the commissioners cannot ease or deliver us, by allowing an abatement.
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