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Comment by chiph | Hacker News Reader

At least one state wants their tax money from illegal income. North Carolina has an Unauthorized Substances Tax, where you buy a tax stamp covering your possession of the items (various drugs and/or moonshine).

https://www.ncdor.gov/taxes-forms/other-taxes-and-fees/unaut...

From talking to folks I used to know at the Department of Revenue, they have never sold any stamps to people in advance of the cops arriving on the scene. Only to stamp collectors.

The tax rate for marijuana is $3.50 for each gram (or fraction thereof) above 42.5 grams. Bulk spirituous liquor is $12.80 per gallon.

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Other states do this and even the federal government, I think. They're shooting themselves in the foot. If the path to legal possession is tortuous and likely to incriminate you then you're protected from divulging it and your nonpayment of taxes is wholly legal on the grounds attempting to collect makes the state violate the 5th.

The widespread use of parallel construction -- and even merely its plausibility -- means that the IRS's current stance on reporting illegal income is likely suspect as well.

There have been a number of cases where the legality of requiring tax payment on illicit income hinges on the state tax authorities providing a means of paying said taxes completely anonymously.

Of course they do not expect anyone to pay - this is merely so they can Capone people. It's much easier to nail people for tax evasion than for the actual crimes they committed in a lot of cases.

The irs is prohibited from sharing taxpayer info without a warrant. There have been many cases in the past where your fifth amendment rights have not prevented tax liability or criminal charges for illegal income.

I know, but that doesn't mean it's right.

Ya and the NSA was prohibited from spying on American citizens without a warrant - hows that going?

>The irs is prohibited from sharing taxpayer info without a warrant.

Ok, sure. And I'm supposed to do the dishes before my wife comes home, too.

> Only to stamp collectors.

Or to stamp "collectors?"

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