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You are worried about the underground economy for people trying to get or maintain entitlement programs. That is chicken feed compared with the underground economy involved in small businesses. Tradesmen and small businesses want cash to be able to avoid taxes. Over the years I cannot begin to imagine how many tens of thousands of dollars I have paid in cash. I get the cash discount and the tradesman or business owner avoids taxes.
Since I was always salaried and paid high taxes, this huge underground economy always bothered.
I guess I should have also mentioned the millions of illegal aliens who do not pay taxes.
I guess you should also include the millions of illegal aliens who did pay taxes. How many illegals live in the US and do not pay taxes? I promise you it isn't millions
Exactly. The name of the game for employers is plausible deniability. That means you treat all employees as if they were legal, even the ones you secretly suspect might not be. Legal or illegal, everyone pays the same income and payroll taxes because the employer is the one who pays them, and differential treatment on his part is like sending in a signed confession.
Hmmm....Hadn't quite sat down and considered the times I paid cash...Kid shoveling my drive way...Or the tow truck guy who only accepted cash.
This could work in my favor...I'm currently negotiating with a chap on some car repairs. I supply all the parts..He does the labor. I'm sure it's not being reported...Maybe I can use this to negotiate his ridiculous 80$ an hour fee. If he isn't claiming it on his income...
Nice thing about being forthright..Keeps your hands clean.
The majority of illegals in the U S are "under the counter" economy members. Illegal use of pilfered SSN's,
claiming large numbers of dependents, allows them to avoid income tax and qualify for various welfare
programs, depending on the state(s). The only solution is mandatory E-Verify. When this occurs, the traffic
heading south will increase dramatically. Bet on it!
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