Posted: Apr 25, 2005 By: sue hadl

Comment: I've been in the financial industry for over 20 years. During this period
of time I've notice a trend that really bothers me. I work on commission but
I'm a w'2 employee. I make fairly good income and I pay a hefty amount of
my income to the IRS. I've come to the conclusion that our tax code is
extremely unfair to the W'2 wage earner verses the self employed and work
for cash.

Time after time after time I've had customers who are self employed come in
to qualify for a home mortgage. Once they tell me that they are self
employed, I ask to see their tax returns. When I tell them that to qualify
for a conventional, VA or FHA loan I have to go off their net adjusted gross
income predominately 9 out of ten times they say the same thing and have the
same look on their face. They emphasize that they're self employed so they
only show limited income , usually between $12,000 and 22,000 net adjusted.
This way they keep their taxes down according to their accountants but they
bring in between $100,000 plus a year so they can afford that $200,000 plus
home down the street. These people pay little if any taxes but that's o.K..
because they're self employed.......I really don't see the fairness in this.
They also have never been audited ( but I have).....Where is the fairness.

If you really want to make the tax system fairer then you need to address
this disparity. If it means a sales tax instead then so be it. At least all
of us would be paying then. This self employed underground society is so

The other underground employed society are the people that work for cash
under the table. There's a Hugh amount of people who do that but once again
they don't pay taxes on there money