Skip to comments.The Underground Economy
Posted on 07/01/2006 6:07:10 PM PDT by pigdog
Illegal Immigrants and Others Working Off the Books Cost the U.S. Hundreds of Billions of Dollars in Unpaid Taxes
America has two economies: First, there's the legitimate economy, in which craftsmen are licensed and employers and employees pay taxes. Then there's the fast-growing underground economy, where millions of nannies, construction workers, landscapers and others are paid off the books, their incomes largely untaxed. The best guess as to the size of the output of this shadow economy is about $970 billion, or nearly 9% that of the real economy. It could soon pass $1 trillion.
What is largely fueling the underground economy, experts say, is the nation's growing ranks of low-wage, illegal immigrants. The government puts this population at 8.5 million, but that may represent a serious undercount. Robert Justich, a senior managing director at Bear Stearns Asset Management, makes a persuasive case in a recent research report that illegal immigrants actually number 18 million to 20 million. If that's true, the economic implications are profound and could help shape this year's debates over both immigration policies and tax reform.
(Excerpt) Read more at wsjclassroom.com ...
The point of it all???
It's time for the FairTax!!!
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Not only dont a lot of illegals pay taxes, they also send a great deal of American cash below the border to be spent out of the country instead of here in our economy.
That cant be a great help either.
There's some good information aobut those who did the Bear Stearns study (which came up with a figure of 20 million illegal aliens) and this was using data that is now over 18 months old.
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all federal income, SS/Medicare payroll, and gift/estate taxes outright replacing them with with a national retail sales tax administered by the states.
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Refer for additional information:
My apologies. I had clicked several topics such as Business/Economy and Culure/Society as well - thinking that it would end up under one of the three but didn't know which one.
Is it possible for you to move it to one of the the appropriate ones?
Those employers should be arrested for not reporting taxes to the government.
You had the others right.
Is it possible for you to move it to one of the the appropriate ones?I don't think there is an "appropriate" sidebar for 18 month old "class room" editions.
Isn't it obvious to you yet that the people who love taxes and spending most, including the Prsident, couldn't care less that illegals don't pay taxes and are a drain on society?...actually fighting their own citizens in favor of illegals...
Do you really think these same people are going to relinquish their power by passing a sales tax?...ONLY if it's in addition to the income tax...be careful what you wish for.
Music to my ears. I'd love to see Chairman Thomas take a real run at this (as the iron gets hotter and hotter). Thanks for posting.
" underground economy, where millions of nannies, construction workers, landscapers and others are paid off the books, their incomes largely untaxed"
Which, of course, explains why the President wants to legalize so many of them.You call it "legalize" I call it amnesty and neither motive has anything to do with paying taxes.
Yes, indeed, I think they will by the time elections are fully on their minds - there are two primary items internal to the US; taxes and illegal aliens in that order and the taxes will impinge upon the other one since it will add a disincentive to come here illegally because it raises the taxes of those who do.
I suppose that's how the nrst has lower marginal rates across the board.
With the FairTax, illegals will pay taxes at the same rate as you and I but will not be eligible for the prebate making their effecive rate right up there.
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