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Calif. targets 'underground economy' of off-the-books hiring, pay
ABC7 ^ | Jan. 3, 2012 | Nanette Miranda

Posted on 01/08/2012 2:11:45 PM PST by La Enchiladita

SACRAMENTO -- The state of California targets an "underground economy." Agencies are going after businesses that pay employees in cash, avoiding workers compensation insurance and withholding taxes. The state's going high-tech to crack down on those employers.

The Contractors State License Board of California has videotaped numerous sting operations where they catch businesses operating without a license and hiring workers under the table -- meaning those businesses aren't paying payroll taxes, workers compensation insurance or contributing to unemployment benefits like legitimate businesses, and pocketing that money instead.

California's underground economy, which includes the landscaping, restaurant, farming and construction industries, is estimated to cost the state $7 billion per year in lost revenue.

(Excerpt) Read more at abclocal.go.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; US: California
KEYWORDS: aliens; budget; california; economy; illegals; immigration; jerrybrown
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To: arthurus
It is not practical for many businesses to “play by the rules” in California.

One more time. What about the the millions of low wage illegals hired by greedy employers in Texas, Arizona, Nevada, Florida, Georgia, Tennessee, Illinois, Ohio, Alabama, Washington, Kansas, etc?

What's the excuse for them???

Ya see, all the corrupt, want to protect the corrupt employers. Everyone knows what's up.

It's corruption to the bone and the greedy don't give a cheet, and they will make every excuse in the world.

It's all about profits regardless of consequences, as the lowly working class tax payer eats the big one and is forced at gun point to subsidize the greedy employers illegal workers...In the form of healthcare, welfare, food stamps, as our hospitals, jails and social services are overwhelmed and economically gang raped.

Going after these illegal alien hiring employers/fatcorps is a priority which has never been addressed because they bankroll the corrupt politicians campaigns and are paid off to look the other way.

It's really a vicious circle of corruption.

81 posted on 01/08/2012 7:15:51 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: US_MilitaryRules

You make a great point!

The only limit to the rat spending in this state is the amount they can tax, borrow, steal, call fees, license until the bill becomes so high that voters say “No More”!

We,re not there yet!


82 posted on 01/08/2012 7:21:42 PM PST by Randy Larsen (For those who I've offended, I apologise for my previous objectionable behavior.)
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To: La Enchiladita

If it is $7billion, then that is about $500/CA taxpayer.

If CA is $25billion in the hole, how much is it going to cost to try to collect a $7billion guess from a hidden economy?


83 posted on 01/08/2012 7:24:39 PM PST by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: Randy Larsen; US_MilitaryRules
Maybe you can answer this Randy.

It is not practical for many businesses to “play by the rules” in California.

What about the the millions of low wage illegals hired by greedy employers in Texas, Arizona, Nevada, Florida, Georgia, Tennessee, Illinois, Ohio, Alabama, Washington, Kansas, etc?

What's the excuse for them?

84 posted on 01/08/2012 7:25:15 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
who for some are making the decision between going out of business or circumventing oppressive regulation and burdensome taxes...Bull shit. If they can't conduct themselves by the rules and laws, like thousands of other businesses

You obviously know nothing about running a small business. And by the way the issues is not paying taxes on profit actually earned after expenses. It is the cost in time and money of complying with an incredible and ever-growing burden of regulation, regulation designed by a few big insiders to squelch competitition, by the way. The reason that business are going to sole proprietors with no emplyees, and relying on contract labor for essential services is to get out from under the crushing burden of paperwork to hire a couple of folks. Unless you are big enough to justify an accountant, a lawyer and a full time commpliance officer, you stay solo.

I know of no sector of American life that is not horibly corrupt, actually.

85 posted on 01/08/2012 7:30:33 PM PST by AndyJackson
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To: Randy Larsen

What is rather convenient is that the shortfalls from previous ‘temporary’ personal income tax(PIT) hikes and sales taxes expiring will come out to about $7-$8billion per year according to the California Legislative’s Analyst’s Office.


86 posted on 01/08/2012 7:36:27 PM PST by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: dragnet2

The story of American jobs and labor is deeply intertwined with predatory Federal, state and local taxation and regulation....

South Koreans sleep soundly on their border with NORKS because of American Taxpayer dollars and the American GI.

Why can’t Texans, New Mexicans, Arizonans and Californians?....BECAUSE

Illegal immigration is THE KEY to the perpetuation of the status quo in DC......

Predatory tax and regulatory policies-actions that basically serve to perpetuate and grow governments-leave what business is left in the country seeking disposable labor.

Illegal Labor is the Feds out for preserving the status quo regarding Taxes and Regulation. Interestingly, that is WHY the Feds encourage in-state tuition etc for illegals under-the-table -their presence providing disposable labor allows Federal, State and local regulatory and tax excess in the status quo to continue.


87 posted on 01/08/2012 7:41:26 PM PST by mo
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To: dragnet2

Same thing aplies to them as well.

Until all employers are required by law to verify the legal status of all employees, and are punished for hiring illegals, they will continue to game the system for their own benefit and contribute heavily to the rat party!

They only understand one thing, economic pain!


88 posted on 01/08/2012 7:41:56 PM PST by Randy Larsen (For those who I've offended, I apologise for my previous objectionable behavior.)
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To: AndyJackson

BINGO!

It’s the entire system than has become corrupt,....no criminal per se, just corrupt.

Those getting in to office are financed by contributions. The contributions are legitimate. If they vote to encourage more business for their supporters, and they have, then the contributions keep coming.

They are small contributions, but their impact are monopolistic for the rest of society in the form of regulations. “permits” for all aspects which can be conceived, such that those who seek to obey legitimate authority are taxed out of business, while those circumventing the system now become the likely contributors to future campaigns.


89 posted on 01/08/2012 7:43:33 PM PST by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: Cvengr

Just about the same amountas the state is losing to illegals paid under the table.


90 posted on 01/08/2012 7:49:05 PM PST by Randy Larsen (For those who I've offended, I apologise for my previous objectionable behavior.)
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To: AndyJackson
The reason that business are going to sole proprietors with no emplyees, and relying on contract labor for essential services is to get out from under the crushing burden of paperwork to hire a couple of folks.

It has nothing to do with bureaucratic paper work, which is a pain, but it's all about the *money* being charged by corrupt government at all levels.

I agree with much and the insurance industry, who is in bed with the government, is a huge factor here, ie: workers compensation insurance/costs, etc.

So are you suggesting businesses are paying illegal alien employees in cash, avoiding workers compensation insurance and withholding taxes, simply because the cost in time and money of complying with an incredible and ever-growing burden of regulation, which is all designed by a few big insiders to squelch competition?

91 posted on 01/08/2012 7:53:04 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: Randy Larsen
It is not practical for many businesses to “play by the rules” in California.

What about the the millions of low wage illegals hired by greedy employers in Texas, Arizona, Nevada, Florida, Georgia, Tennessee, Illinois, Ohio, Alabama, Washington, Kansas, etc?

Same thing aplies to them as well.

Thank you.

This is what I was talking about earlier, when people come on here making ever excuse in the book for employers to hire illegals.

92 posted on 01/08/2012 7:56:33 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: mo

Yep.


93 posted on 01/08/2012 7:59:00 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: AndyJackson
BTW, I do agree, government at all levels is choking off the American people, by their endless regulation and control of everything.

Bottom line, is government wants total complete control, which is causing unbelievable problems. My issue is, this is no damn excuse for employer/contractors to hire tens of millions of illegal aliens. That's bull cheet.

94 posted on 01/08/2012 8:05:50 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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95 posted on 01/08/2012 8:07:33 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Randy Larsen

I can understand metrics used to calculate the cost illegal aliens have on CA services; $4.5bil/yr K12 schooling; $1.4 prisons; $1.4 medical or about $7-8bil/yr.

I don’t understand the metrics being used to determine the size of an underground economy.

FWIW, I would suspect the homosexual community underground economy to be far greater. The homosexual mindset has been honed to behave without being held accountable to public law, while working to change established institutions to their personal behavioral desires. With 2 income households, they have far greater expendable income than most heterosexual families, so they tend to hide much greater percentages of their income in other properties and they hate being taxed. If anything, they perceive their higher tax rates to be a public form of bigotry against their ‘lifestyle’.

CA homosexuals tout their numbers in CA at over 1.3mil, however some studies find the illegal population in CA to be around twice that number at 2.6mil ( http://www.ppic.org/content/pubs/report/R_711LHR.pdf ). The reported incomes of homosexual partnerships tend to be twice that of heterosexuals and the investment portfolios of homosexuals may increase by nearly an order of magnitude.

Considering the illegal population is more likely to be lower wage earners, it might not be more advantageous economically to further tax that underground economy more than say the homosexual community and its vast underground investment portfolios.

IMHO, the better bang for the buck is to go after the homosexual community to pay their fair share instead of racially discriminating the Latino community.

From the study above, the illegal immigration communities may be far greater in the Asian than Latino communities in more affluent areas.


96 posted on 01/09/2012 2:47:03 AM PST by Cvengr (Adversity in life and death is inevitable. Thru faith in Christ, stress is optional.)
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To: gaijin

Best post of the thread.


97 posted on 01/09/2012 2:55:41 AM PST by SIDENET ("If that's your best, your best won't do." -Dee Snider)
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To: rottndog

Since the tax burden here is one of the highest in the country already, why would you suggest that? It’s NOT the state’s money to begin with. It belongs to the person who’s EARNED it. You must love them gubmint thieves.


98 posted on 01/09/2012 5:25:25 AM PST by dcwusmc (A FREE People have no sovereign save Almighty GOD!!! III OK We are EVERYWHERE!!!)
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To: dragnet2
Okay now you tell me why California is losing business rapidly to other parts of the country if every other state is just as bad. I guess you can compare it with Illinois and it won't look so bad.
99 posted on 01/09/2012 5:38:04 AM PST by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: dcwusmc
Since the tax burden here is one of the highest in the country already, why would you suggest that?

What's good for the goose... My whole point is that both employer and employee are complicit in the evasion of taxes when working off the books. If the state is going to make a big deal and go after the EVIL employers, equal protection dictates that they also go after the employees who are equally guilty of tax evasion.

It’s NOT the state’s money to begin with. It belongs to the person who’s EARNED it.

Agreed...both for employers and employees. But if they go after one, they should go after both.

You must love them gubmint thieves.

Nope...this is actually quite amusing and fun to watch. The government thieves will try to grab more money, and they will fail. People will find ever more creative ways to avoid the tax man. Always have, always will. And that's a good thing.
100 posted on 01/09/2012 8:33:25 AM PST by rottndog (Be Prepared for what's coming AFTER America....)
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