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Small-Scale Question Sunday for February 5, 2023

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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Does anyone know of a good write-up on the “Patel motel cartel”? I saw a Charles Munger clip where he says they don’t pay income tax; are they taking advantage of loopholes or doing light cash business fraud?

Are you asking about motels run by Indian immigrants? The phrase "Patel motel cartel" smuggles in quite a few assumptions, and I'm not sure that I parsed them all.

If "they" share some tax advantage, I would expect it to be cash-business fraud rather than a loophole. A quick Google suggests that occupancy taxes are usually local or state, which suggests the feds aren't really in the business of regulating hotels/motels. I think that makes a nationwide loophole less likely.

Do you have a link to the Munger clip?

I’ll second the notion that if a specific ethnic group is avoiding taxes in a particular business at scale, it’s probably due to being good at fraud rather than having loopholes everyone else missed.

It’s the phrase of choice for the topic at hand, having been used by the NYT and hospitality organizations since the 90s, and hundreds of other journals.

https://youtube.com/watch?v=Y8UVca16Fao although I came across it on Instagram.

Thanks!

I'd definitely run across the stereotype before. Somehow I hadn't seen the phrase attached, though.