Would Switching to a Cashless Economy Mean Lower Taxes?

Technology seems to be pushing us all toward a CASHLESS economy, without paper money and coins.  Digital transactions are easier and more common than ever, even without credit cards.

Some people may not like the move away from carrying money, but researchers from the University of Georgia say that the average American family would be far better off if the U.S. eliminated all paper money.

The idea is this:  If all transactions were digital, and on-the-level, that would mean there wouldn’t be as much tax evasion as there is with cash.  You know, like businesses not reporting sales, or paying people “under the table.”

Of course, this plan hinges on the IRS agreeing to lower or even eliminate some taxes in exchange, and there’s no guarantee that would happen.

The researchers used models that showed that average, middle-class families would greatly benefit from the trade-off, but it wouldn’t work out so well for lower-income households, who are more dependent on cash.


(Study Finds)