"A man claimed $30,000 worth of business expenses for the costs of goods he was selling in 1981. The goods? Amphetamines, cocaine, and marijuana. The IRS disallowed the deductions because the man hadn't documented his business thoroughly, but a tax court overturned the decision based on his candid testimony about his business practices. Allowed to claim the deductions, he was then sentenced by a criminal court to four years in prison for possessing cocaine with intent to distribute it."
- Public Finance and Public Policy by Jonathan Gruber (M.I.T.)
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