nakedempire


The American Empire in a Changing World



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Thursday, April 14, 2011

The Underground Economy: How Big Is It?

a must read ............from op-ed news.....

"Reiterating, all transactions in an UE are not connected to illegal activities; everyday legitimate activities or jobs can also go underground for various reasons, most notably the avoidance of having to pay taxes or receiving government handouts while working at a paid job. The desire to go underground may intensify when people think that they are being unfairly treated by the tax system or do not benefit deservingly from the outcome of economic prosperity. In particular, people get upset when they learn from the news that corporations do not pay their fair share of taxes because of countless numbers of loopholes they can take advantage of or learn about their symbiotic relationships with politicians. The tax-paying consumers feel betrayed when news media report about pay raises for already well-paid CEOs or they hear the phrase "tax cuts for the wealthy." They too try to escape paying taxes by defecting to the underground sector or resorting to cash business. 


"Furthermore, the current harsh and long economic slump has created financial hardship for millions of households as well as for business firms, forcing them to craft creative ways to deal with burdensome expenses. Consequently, the UE has become a frugal choice for many individuals as well as business people who have watched their real income, their purchasing power, dwindle down because of escalating costs, a rigged economic system, and an unlevel economic playing field".....read more here

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