The article discusses the paradox of breaking the law for productivity, particularly in the context of cash tipping and the use of crypto. Cash tips benefit low-margin businesses by supporting quick hiring and firing, ultimately contributing to economic efficiency. However, making tips tax-free could unfairly favor certain professions and distort income value perceptions. The case of a Miami exotic dancer illustrates the complexities of cash income reporting. The author argues that the IRS should treat all forms of earned income equally rather than selectively favoring those who earn in tips. Additionally, the article explores the implications of stablecoins, which allow for larger-scale law evasion and could enable productive activities in environments with restrictive banking systems. However, in the U.S., stablecoins have primarily been used for trading unregulated crypto, which poses its own set of legal and productivity concerns. The overall message underlines the potential benefits of 'productive illegality' but calls for a more equitable taxation approach.

Source šŸ”—