Author Topic: Cash Shortage  (Read 6071 times)

bigblock440

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Re: Cash Shortage
« Reply #50 on: July 29, 2020, 03:05:45 PM »
For all you homeowners, its a great time to be holding physical cash. If trade peoples are less busy in your area, good cash prices can likely be found for your project work.

I really don’t think it’s good to encourage tax dodging among trades people.

While I realize that contractors offering a significant cash discount are often doing it to avoid creating a paper trail for taxes, it's also really not my problem whether they pay their taxes or not.

1. just because you pay cash doesn't mean they don't report it.

2. if they are dodging taxes right now, I'm totally OK with it. With a near moratorium on construction work in my area, I understand why they want/need some cash income. The guys and gals taking your cash to diddle with your s#%t under your house are not in the 1%.

Could also be doing it to avoid credit card transaction fees

friedmmj

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Re: Cash Shortage
« Reply #51 on: July 29, 2020, 03:37:21 PM »
if they are dodging taxes right now, I'm totally OK with it. With a near moratorium on construction work in my area, I understand why they want/need some cash income. The guys and gals taking your cash to diddle with your s#%t under your house are not in the 1%.

I'm not. I've paid every single penny of tax that I've ever owed, including when I made minimum wage. If you are going to cheat on your taxes you may as well cut out the middle man and start burglarizing your neighbors.

Here here brother!  It’s also unpatriotic to dodge taxes.  Why should a plumbing contractor running a fleet of trucks and with a summer house at the beach be able to fund his lifestyle with off the Books cash flow?  I’m paying 70k a year in federal income tax and Uncle Sam gets every dime I owe.

LetItGrow

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Re: Cash Shortage
« Reply #52 on: July 29, 2020, 04:22:35 PM »
Related Update: I sold three rolls of quarters to the person I mentioned above. A couple of days later, she asked to buy some for her mom, so I sold her four more rolls. Four days later, she pings me asking if I have any more. Um, no. Sheesh, after seven rolls, maybe she's found somewhere to sell them for more than face value. All done, sorry. Glad I met her at the Police Station parking lot.

Curious...you had a lot of rolled quarters around, care to share why?

TomTX

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Re: Cash Shortage
« Reply #53 on: July 30, 2020, 10:39:23 AM »
New twist on cash crunches.

My car's check engine light is on, and I need an inspection.  DH had our local mechanic run the code - O2 sensor.  They are $350 each, there are 2, so $700 just for parts.

That seems super expensive for oxygen sensors. Have you checked prices at someplace like RockAuto? I paid like $150 for a set of 2 oxygen sensors last year. You probably also need the special wrench that's about $10 at Harbor Freight.

Reynold

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Re: Cash Shortage
« Reply #54 on: July 30, 2020, 03:38:38 PM »

While I realize that contractors offering a significant cash discount are often doing it to avoid creating a paper trail for taxes, it's also really not my problem whether they pay their taxes or not.

1. just because you pay cash doesn't mean they don't report it.

2. if they are dodging taxes right now, I'm totally OK with it. With a near moratorium on construction work in my area, I understand why they want/need some cash income. The guys and gals taking your cash to diddle with your s#%t under your house are not in the 1%.

Could also be doing it to avoid credit card transaction fees

Given that my local government charges me the credit card fees if I want to pay them using a credit card, I am fine with paying people contractors cash so they can avoid the credit card fees as well.  I also know enough contractors who have had checks bounce after completing a job, and had to pay bank fees, that I don't blame them for not wanting to take checks. 

Cassie

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Re: Cash Shortage
« Reply #55 on: July 30, 2020, 05:21:53 PM »
We each take our fun money out in cash each month. We prefer to do it that way versus keeping track of how much we each spent on the card. That’s the only time we use cash.

rmorris50

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Re: Cash Shortage
« Reply #56 on: July 31, 2020, 12:16:15 PM »
I'm not convinced we could ever go to a true cashless society. Money comes from other people, not the government. The government wants you to think it comes from them so they can control it, and get their taxes. If the federal gov got rid of cash, I would think another physical "underground' or local currency would pop up to take its place. Or people would hoard dollars and trade those for as long as the cash would hold up.

The one thing I don't like about a cashless society is 1), grid goes down, then cash is king. What are you going to trade? this is why I actually keep some money in the house and 2) in theory the gov/companies can control your purchases. I know it sounds extreme, but could there be a scenario where if you're tagged as rich and there is a shortage of something, could the gov force the CC company to decline your transaction. Sounds extreme, I know, but cash is the only true way to give yourself full control of what you purchase.

Being tracked by your purchases is also another concern, but we have that today already.

habanero

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Re: Cash Shortage
« Reply #57 on: August 02, 2020, 04:37:13 AM »
Federal Reserve chairman Jerome Powell told the House Financial Services Committee on June 17 that the coin shortage has resulted from the partial closure of the economy.

“With the partial closure of the economy, the flow of funds through the economy has stopped,” he said. “We are working with the Mint and the Reserve Banks, and as the economy re-opens, we are starting to see money move around again.


https://eu.usatoday.com/story/news/factcheck/2020/07/21/fact-check-america-midst-national-coin-shortage/5439455002/


 

Wow, a phone plan for fifteen bucks!