ight thanks everyone i understand now
In: Economics
You steal 100 000 dollars. You can’t really pay taxes on it, because IRS wants to know where you got them. You can’t NOT pay taxes on it, because IRS will put you to jail. Cops will raid you and find the money and ask a question you don’t have answer to. And you can’t use it, because it’ll be visible (a house or car or whatever) and questioned, because you’re a criminal and probably investigated and suspected.
So, you open some sort of hard-to-audit cash business, like a burger joint, and slowly drip that money into burger joint. You make $1 profit from burger, but in your accounting, you write $2. And really have that amount in your till, because you added your dirty money. And then you pay taxes. Because IRS won’t ask your customers how much they paid or tipped or whatever nor post an agent in the joint, counting the burgers sold.
And the stolen money becomes clean for you to use, legal and taxed. You can put it in the bank and nobody bats an eye.
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