Do we all really pay taxes? Or do some people get special treatment?

“Beanie Babies creator pinched for tax evasion”

By: James O’Toole

September 18, 2013

CNN

Do we all really pay taxes? Or do some people get special treatment?

                Taxes, by definition, are a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.  People pay taxes on everything.  We pay taxes on food, clothing, gas, and housing, but does everyone have to pay taxes?  Do those filthy rich movie stars and business people have to pay taxes like we do?  Some people wouldn’t think so… why not?! They make a whole lot of money, it’s their special treatment.  The truth is that all persons are supposed to pay taxes, supposed being the key word in this sentence.  Some people try to get away with not paying their taxes such as Ty Warner.

                Ty Warner is the owner and founder of TY Inc., which hit it big in the 1990’s when Beanie Babies became some of the nation’s hottest toys and collector’s items.  Prosecutors say Warner stashed over $93 million in an account with UBS bank in Switzerland. Ty Warner is accused of failing to pay $885,300 in taxes from 2002.  That is $88,530 a year that he didn’t pay.  On top of all of that he is being charged a civil penalty of $53.5 million for failing to report the account.  That was part of his plea agreement.

                Gary Shapiro is the U.S. attorney in for Northern District of Illinois.  He claims that Warner went to great lengths to hide this income in the Swiss Bank.  He states, “Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report.”  That answers the question I stated in the first paragraph. 

The traditional tax evasion charge carries a maximum penalty of five years in prison and a $250,000 fine. 

                Even though we don’t see Beanie Babies in the stores as often anymore, Ty Warner has an estimated net worth at $26 billion.  This just goes to show that no matter how rich you are you still have to pay taxes.  Taxing is an issue all around the country, but we all become equal when it comes to paying them.   There was even a classic life lesson imbedded in this story! Honesty is the best policy!