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Small-Scale Question Sunday for October 12, 2025

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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How do those countries handle cases of "odd jobs" and stuff like that? If you're a farmer that makes money by, I dunno, selling grain, how does the government know how much was sold? Or if you sell goods/services direct to consumers? I suppose the tip income is somewhat US-specific and doesn't matter quite as much any more, but there are a bunch of less-easily-trackable income sources that would seem to make this a bit hard in the general case.

How do those countries handle cases of "odd jobs" and stuff like that? If you're a farmer that makes money by, I dunno, selling grain, how does the government know how much was sold? Or if you sell goods/services direct to consumers?

A farmer already has a business, so those would be handled the same way as any other business transactions. Selling small scale goods / services requires reporting the income if it exceeds a small threshold, but that's still fairly easy and can be done online. If it's more substantial, you may want to start a business. There are also services for people who do occasionally freelancing gigs that charge a small percentage fee to act as their official employers, so the client doesn't have to deal with paperwork and the person doesn't have to deal with the extra complexity of starting up a business.

I have zero real interface to farming and consumer-facing business, but I think if your income comes from selling stuff to people and not payroll, you are then taxed like a small business, and most entrepreneurs pay for accountant services handle that shit. I know that "farmers markets" type of businesses have lessened reporting requirements as long as their business is small-scale.

tip income: no idea how it would be handled when it does not go through cash register.

Any other variable income (say, bonuses of salaried employee) is easier but inexact. Every year the tax authority sets a preliminary withholding rate based on your previous reported income and rate (which they obviously know of), and you have a chance to correct their estimate. If you have same employer, employer is informed directly and you have to do nothing if you agree with the estimate. Your employer withholds accordingly, reports the amount withheld to government and you, at end of tax year authority calculates true total reported income and sends you the pre-filled form. Standard deductions are automatically applied, you tick a box and report a number if you think they missed something. If your income income is super variable, withholding rate was probably not correct, and you usually get a refund or back taxes. (People usually set their rate same so that they get refunds.) If you are doing odd jobs as hourly paid wage labor or you as a salaried employee switch jobs, you provide your taxation information to every new employer.

In case of Russia, they don't. That's why they introduced a new "self-employed" status a few years ago with much lower taxes on income to incentivize people to report their cake baking and pipe fixing and dunce tutoring. (It's different with the farmers since they don't really sell grain to individuals and mill that buy it from them provide the record of buying it.) But the self-employed are small fish and it's not worth it to personally hunt down every single one of them.

The next set of carrot and stick that will be used to ensure compliance is probably government-run crypto. It's easy to inject it into the economy: social security of every kind. All transactions using them will be 100% transparent to the government.

dunce tutoring

I assume this is a typo for "dance", but I find it rather amusing.

ETA: This dumb brought to you by not being fully awake.

No, it seems pretty clear ESOL for teaching kids that don’t live up to their potential- despite how low that potential is.

A 'dunce' is an idiot or a slow learner. See also the 'dunce's cap' which was used to shame and humiliate children who were disruptive or did not learn.

It's not a typo.