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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: Inyo-Mono
I remember when they pulled a raid on the restaurants in the Mammoth Lakes ski area in California a decade or so ago. Every restaurant in town had to close down for several days until Immigration left town.

It's because they are run by a bunch of unscrupulous business owners who are more concerned with putting money in their pockets than being legitimate and above board.

Employers everywhere do that to avoid the workers comp insurance, avoid paying taxes and avoid paying normal legitimate wages.

Trust me, they love under the table, low wage illegal workers who think company benefits mean a 5 minute break.

41 posted on 01/08/2012 3:19:33 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: Randy Larsen
This is a good thing. Employers have been cheating the system for their own benefit, at the cost of us taxpayers, since the early seventies.

Absolutely!

Corrupt employers are all over the landscape.

Then throw in the businesses owned by foreigners and it's totally out of control.

42 posted on 01/08/2012 3:27:03 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: La Enchiladita
estimated to cost the state $7 billion per year in lost revenue. <<

The “California Solution”.....Create a new Government bureaucracy....the "Malicious Under Ground General Enforcement Div.".... "MUGGED"... Hire $8 billion dollars worth of Public Employees to hunt down those underground law breakers!!...That should fix the problem!

43 posted on 01/08/2012 3:30:29 PM PST by M-cubed
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To: Rio
I used to mow lawns in CA for cash. Would they come after me for that now?

Why would expect not to pay taxes? If ya had employees, why would they not be covered by workers comp?

Are you suggesting these guys who work full time performing landscaping services for clients, not pay like all other businesses are required to do?

44 posted on 01/08/2012 3:32:30 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: La Enchiladita

The System

1. High tax/no border controls permits for free health care

2. Illegals enter California, respond to incentives, boost their high fertility by creating anchor babies

3. Employers detect rich supply of cheap labor, hire illegals, pricing real American out of jobs

4. Amnesty legalizes new cadre of Mexican voters —they reciprocate the Invasion Machine with reliable votes. One hand is now washing the other in self-sustaining, “Enrichment/Vote Vortex”.

5. Invasion Machine needs to sustain enrichment, but encounters a dilemma; it must permit employment of illegals, while punishing employment of illegals who minimize participation in social programs

6. Solution: punish businesses who employ illegals who don’t participate in social programs


45 posted on 01/08/2012 3:33:16 PM PST by gaijin
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To: La Enchiladita

This is the easiest way to a police state. High taxes and Byzantine regulations results in law breaking out of necessity or out of ignorance. More law enforcement are needed, businesses fail, government revenue falls, other businesses arise in the black market to meet demand and then more police are needed and the cycle repeats itself.
Eventually, everyone on all sides becomes accustomed to breaking the law, and we descend into the law of the jungle instead of the rule of law. Zero is the prime example of this decline.


46 posted on 01/08/2012 3:33:16 PM PST by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
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To: La Enchiladita

low income tax and high sales tax is the answer...everybody spends thier money!!!


47 posted on 01/08/2012 3:38:06 PM PST by terycarl (lurking, but well informed)
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To: La Enchiladita

Underground economy in California...how about they step out of the front door.


48 posted on 01/08/2012 3:38:23 PM PST by BobL ("Heartless" and "Inhumane" FReepers for Cain - we've HAD ENOUGH)
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To: M-cubed
The “California Solution”.....Create a new Government bureaucracy

Ya got millions out there working under the table for thousands of corrupt employers who are not paying withholding taxes, worker comp, etc., like legitimate businesses do..What do you suggest be done?

Going after these criminal employers should have been done 20 years ago.

49 posted on 01/08/2012 3:38:34 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: La Enchiladita

First, they’re not going to crack down.

But second, if they did, a lawyer would simply have a judge shut it down for anti-Hispanic activity.


50 posted on 01/08/2012 3:39:44 PM PST by BobL ("Heartless" and "Inhumane" FReepers for Cain - we've HAD ENOUGH)
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To: La Enchiladita; 1_Inch_Group; 2sheep; 2Trievers; 3AngelaD; 3pools; 3rdcanyon; 4Freedom; ...
Ping!

Click the keyword Aliens to see more illegal alien, border security, and other related articles.


51 posted on 01/08/2012 3:43:57 PM PST by HiJinx (I can (still) see Mexico from my back porch.)
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To: Randy Larsen

Had the employers not been cheating, do you think ca would have enough money? BWAAAAAAHHAHAHAHAHAHAHAHAHAHAHA!!!!


52 posted on 01/08/2012 3:44:52 PM PST by US_MilitaryRules (Unnngh! To many PDS people!)
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To: Freedom_Is_Not_Free

Nj has a huge underground economy, and families really aren’t contibutors. Newark has some fine Iberian restaurants, but it seems there are a few Europeans that own/run them, and every other person there is a non-English speaking suspected alien from South America. Illegals in NJ are targeted by advertisers because they have more discretionary income than Americans burdened with taxes and residential occupancy codes.


53 posted on 01/08/2012 3:46:15 PM PST by kearnyirish2
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To: La Enchiladita

they are bound and determined to shut down whatever remains of a functional economy in California....


54 posted on 01/08/2012 3:46:53 PM PST by mo
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To: Freedom_Is_Not_Free

one of many reasons the government sees the family as enemy..

http://lubbockonline.com/interact/blog-post/may/2010-06-21/government-remains-number-one-enemy-fatherhood-and-families#.Twoo3yNnHPA


55 posted on 01/08/2012 3:50:47 PM PST by mo
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To: rottndog
If the employers owe $7 billion, the employees probably also owe several billion...why not go after that too???

Good luck finding the employee. He's probably an illegal. Since he gets paid in cash under the table, there was no need to give a social security number, address, or correct name.

56 posted on 01/08/2012 3:52:30 PM PST by PapaBear3625 (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: US_MilitaryRules
Had the employers not been cheating, do you think ca would have enough money?

If they can afford to conduct a legitimate business, they need to get the hell out out of business.

Yet they can afford to hire a bunch of low wage illegals who think a 5 minute break means company benefits, but can't afford withholding tax or workers comp?

Tell me, when the illegals sue these greedy chumps for serious injury, costing tens of thousands in medical costs, and it's discovered the POS greedy employer was fraudulently hiring illegals under the table illegals, ya think the AH employers can afford that?

57 posted on 01/08/2012 3:55:36 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: mo

You hire illegal aliens?


58 posted on 01/08/2012 3:56:45 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: US_MilitaryRules
If they can't afford to conduct a legitimate business, they need to get the hell out out of business.
59 posted on 01/08/2012 3:57:41 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: La Enchiladita

Wait, what, I thought all this time everyone knew that illegals pay taxes and that they are such a benefit because they bring in more money than they cost! I’m shocked! /sarc


60 posted on 01/08/2012 3:58:49 PM PST by ReagansShinyHair
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