Posted on 04/11/2010 7:46:58 PM PDT by 2ndDivisionVet
He plies his trade at Arden and Howe, one of the city's busiest corners. An advertising sign holder for hire, Trandell McCauley makes his money a couple hours a day or a week at a time.
And he earns it in cash.
McCauley calls his job a "backbone," the $10 an hour he earns keeping him standing in tough times.
He is part of the bustling underground economy, where folks are paid in cash and taxes aren't paid at all. State agencies don't keep precise, up-to-date statistics, but experts say the deep recession has made such shadow work a growth industry here.
Some of these people can't find other jobs; some choose to avoid paying taxes; some are undocumented immigrants who fear deportation. Others have employers who insist on hiring them under the table. Still others earn income through illegal activity.
As much as $2 trillion in income went unreported nationally in 2008 — about 24 percent of total adjusted gross income in the United States, said Edgar Feige, a University of Wisconsin economist and authority on the topic. That's the highest level since World War II, he said.
"It seems to be trending up," Feige said. "There's no indication of it changing course until the general economic situation improves. When more employment opportunities arise, that will reduce the level of underreporting and nonreporting."
For the cash-strapped state of California, the underground economy represents a major lost opportunity to help fill the estimated $18.6 billion budget deficit.
In 2005, the state Legislative Analyst's Office estimated the state was failing to collect about $6.5 billion in income taxes each year due to such cash transactions. Another $1.5 billion annually in sales taxes was also going unpaid, the agency estimated.(continued)
(Excerpt) Read more at mercurynews.com ...
By the same logic that’s allowing them to force people to buy health care.
Why?
Why not just cut government spending to match revenue.
Sounds like you like the government taking your hard-earned money.
Are you advocating that too? I didn't notice a sarcasm tag on your original comment.
When you have tax rates that are immoral, people will redefine what they might be willing to risk to avoid them and maybe not feel so guilty doing it.
The legal citizens are learning from the illegals. You work a part time job that is reported to earn the earned income tax credit. At the same time you work other jobs for cash without any tax,,for you or the employer. You get food stamps. Man..life is good..money for almost nothin and the chicks are free.
The fact that they just noticed this is amazing. If you are at all associated with the immigrant community..this is standard knowledge. Plus..they get free health care. And their kids get bused to a good school..and free school lunches..free after school care. Man..if is great to be poor in America!!!
Not my neighbor. He runs a thriving tattoo business. All of the work he has done on his house is through barter. Tats for painting, fence repairs, etc, etc. This is going on all around us. There is no stopping it.
Thanks for the tip.
My sarcasm tag is somewhere with my car keys and the remote.
If he’s somehow re-elected, it’ll be the biggest part of the economy by 2017.
I know several contractors that have gone private and prefer cash...so I pay them in cash. Screw the government.
I don't think it even needs to be directed at confiscatory tax rates. An anger at an out-of-control government will contribute to it too. I managed to get my federal income taxes down to zero this year.
I used to work at a restaurant with a waitress who worked full time, but somehow was also on welfare. She used to brag about her and her husband’s boat all the time. It wasn’t a rowboat either.
Sadly in search of, but one step in back of....
Themselves and their slow-movin” dreams....
WILLY NELSON
I managed to get my federal income taxes down to zero this year.
__________
Not me. I’m a 53%er.
Barter will work up to a point in a service sector economy. We may indeed be forced to go back to some type of small scale domestic manufacturing (clothing, furniture) and agriculture especially if we hit real hard times.
With a more balanced economy, barter could really take off in a high tax environment.
Close, but wrong.
It should be “The beatings will increase until moral improves.”
WORKS FOR ME!
This is one reason they’re coming up with the great idea for the VAT tax all of a sudden. Fewer “honest” jobs means less income tax feeding the beast via the normal channels.
VAT will drive more black market, what will they do when people resort to barter?
Same here. The Democrats will let the $10hr earners make $10hr under the table and they'll continue to hammer at the folks who actually file a 1040.
I too support the Fair Tax but only if the income tax is abolished.
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