“Why the hell do you declare your income?”
Someone asked me that question yesterday. He’d read my post about writers rates and the expenses related to freelance writing. After all, my friend pointed out, it all happens online. Who’d know if I just pocketed the money?
Well, I would, first of all. I’m big on honesty and honor, and declaring income is the right thing to do. My taxes help pay for social services, medical care, and reduce tuition costs in schools, to name just a few areas my dollars impact.
There’s more. If I didn’t have a declared income, I would never experience this possible scenario:
“Your loan is approved, Mr. Chartrand. Here are the keys to your new Pontiac Solstice.”
Alright, so I have a long way to go before I reach that point, but hey. I can dream.
I couldn’t show anyone that my business is solvable, profitable and worthwhile. That’s important when it comes to applying for loans, mortgages, credit cards and any other area of life where you need to show that you make enough money to be considered for acceptance.
Plenty of neat things come with declaring income. Here are a few:
I get tax breaks and credits. I can reduce the amount of taxes that I do pay by writing off my computers, my books, my flash drives, my paper, ink for printer, and more.
Because I’m legit, I can do business with large companies. Many firms don’t want to deal with under-the-table workers. They need registered businesses with records of accomplishment and good standings.
I can contribute to employment insurance. If I experience a lull that hurts me bad, I can tap into those contributions so I have a little bit of money to get me through the rough patch. I can get other types of insurance, too. Black market? No way. If I tripped and fell and broke all my fingers, I’d be screwed.
I can freely promote my business. I can tell anyone I write, offer my services, put ads in papers or stores. I don’t have to hide my career, moonlight on the side or feel ashamed. I don’t have to whisper, “Keep it between us, eh?” Hell, anyone can shout my name out from the rooftops.
Nope. I’m pretty proud of being honest with my books. It makes the accounting headache worth it.
Have you ever thought that taxes are just extortion by those with a monopoly of violence and that social services could simply be provided for by the people?
Plus, you show that your business is solvable, profitable and worthwhile because it provides a USEFUL PRODUCT or SERVICE, not because you have a piece of paper from those authoritarian sociopaths that call themselves “govern”ment.
Governments are just thieves that just foist upon inferior services on the people, stifling creativity and what not.