I've known of guys in my profession who have given cash discounts back in the day. Those were the good old days.

I've known of guys in my profession who have given cash discounts back in the day. Those were the good old days.

Just been a few years ago I didn't have dental insurance. Went to a guy the entire time I lived in Louisville that gave a cash discount. It was very significant too.

I most always pay cash.. Saved $3,000 on a new roof. Over $1,000 on a new heat pump.. Doctors love cash. They hardly ever get any. Saved $1,500.00 on elective eye surgery more than 15 years ago.

On our current trajectory, just about everything...

 

I agree, but I'm going to pass on the "just about" details....

I most always pay cash.. Saved $3,000 on a new roof. Over $1,000 on a new heat pump.. Doctors love cash. They hardly ever get any. Saved $1,500.00 on elective eye surgery more than 15 years ago.

 

Human nature will always win out over regulation.

 

The question is what lengths is the government willing to go.

Just been a few years ago I didn't have dental insurance. Went to a guy the entire time I lived in Louisville that gave a cash discount. It was very significant too.

Did a set of braces once 15+ years ago for a guy (braces for his daughter) who traded me a ford 8n tractor he'd refinished. Terrific barter. Win/win.

It is morally wrong to pay cash to eliminate the company having to pay taxes. If you do this, please don't complain about the services provided by your government. That being said, I almost always ask for the cash price. I have no issues doing this to save me and the contractor money. I pay too much in taxes already.

Buddy of mine was getting a divorce. He used to take some "left pocket" transactions. In front of the judge when they were figuring out child support and alimony payments, she complained that she should get more due to his cash transactions. The judge asked her if she signed off on the taxes every year and she said yes. And he than asked her if she would rather explain to the IRS that she knew of his illegal transactions or if she was satisfied with the amount rewarded to her. She shut up pretty quickly.

It is morally wrong to pay cash to eliminate the company having to pay taxes. If you do this, please don't complain about the services provided by your government. That being said, I almost always ask for the cash price. I have no issues doing this to save me and the contractor money. I pay too much in taxes already.

Did a denture for a guy who couldn't afford it once in Louisa, he gave me a Rem 1100 in great condition as a "thank you". Still have it. Hope he still has the teeth.

Did a denture for a guy who couldn't afford it once in Louisa, he gave me a Rem 1100 in great condition as a "thank you". Still have it. Hope he still has the teeth.

I've traded products for services as well. Always ask the guy if he has kids. I use them as tips to them as well.

Well let's see, either you and your contractor get it to pay bills and buy groceries or the government gets it to waste on God knows what!

I'm not disagreeing with your premise, I totally agree and would use that as my defense. What you cannot control is what is said when the contractor is questioned. Take it away from a one time event, roofing, and make it be the guy who cuts your grass. You pay for this service year after year and you are meticulous about how and what and where you want your grass / landscaping done, and you have always paid cash. Contractor gets popped for tax issues and when they begin to question, they want to know the details of his revenue stream, that comes back to you. You potentially have an employer relationship now instead of a contractor / consumer relationship and that is how the IRS gets into your front door.

 

I believe you are combining an arm's length transaction with a supplier who gives a cash discount now with the issue of a "leased employee". If I pay a supplier cash in an "arms length" transaction (meaning executed in good faith)...if the vendor cheats on the taxes and doesn't report the income....I have no complicity to this part of the transaction. On the later case, if I am paying the person who mows my yard cash, and it turns out that I am his only customer, then, in effect, I am his primary source of income, and I am his employer on a leased basis, AND I could be held liable for payroll tax withholding AND workers compensation insurance. To prevent this, whether a company or an individual, it is prudent to ask for a W-9 (and a certificate of insurance for that matter).

Well let's see, either you and your contractor get it to pay bills and buy groceries or the government gets it to waste on God knows what!

Stupid stuff like roads, bridges, lights on the highways, snow removal?

Or light rail systems, congressman salaries, etc?

The total taxes for a self employed person can often range into the 50% category so if you're asking for a cash discount don't accept a small one. I'd ask for a third off and maybe settle for 25%.

Anyone ever ask for the "cash price" or "best price" at a pharmacy? Any luck?

 

An excellent app for that would be the GoodRx app which will give you cash prices for any drug you choose in an area you designate to get an idea of who has the best deal. It'll even give you some coupons for some drugs.