Only a few people escape paying income tax--drug dealers, car thieves, bank robbers and some corporate giants. I never really thought about witches and income taxes, but it seems that, at least in Romania, witches have escaped paying income taxes for centuries, but no more. However, these witches are not happy about having to shell out part of them income for casting spells and creating curses. In fact, the witches are so upset they have threatened the government with spells and spirits. So far, however, the government is standing firm although some of the curses and spells may not have yet taken effect.
I am not sure if witches in the United States are taxed but with the bad economy, downturn in the housing market and several reality shows involving housewives in New Jersey, I would be very cautious about taxing anyone whose profession involves casting spells or making potions.