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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 ...
It is not just the illegal aspect that is alarming, although it is the largest contributor to the underground economy. Persons collecting unemployment benefits or welfare have every motivation in the world to earn while protecting the state handouts. This is a HUGE problem and exemplifies how the mammoth welfare state is incapable of true oversight.
Hilarious. Unions vs. Illegals.
The funny part about the underground economy though is that a lot of the people in it are not illegals. They just don’t want to be part of “the system”, when “the system” treats them like dogs.
To start with, many do not have permanent addresses and ID papers, nor do they want them. They avoid the official “homeless services”, because they neither want anything to do with those that run them, or those that use them.
Often they are not mentally ill, or stupid, drug addled or alcoholics. They just do not want to “play the game”.
Yes, many do have problems, including outstanding warrants, which are pretty easy to get if you are living outside the system. A lot of people and places both hate and fear people like that. Many are too young, and would be arrested as runaways if caught. But they do not have a family they want to live with, and certainly don’t want to be wards of the state.
So they live and work in the underground, often itinerant, and for many years. They are paid and pay in cash only, and spend a lot of time avoiding the government.
Bottom line is ya need to go after the greedy business owners and the illegals themselves...
It’s out of control...
Ya go after the slut and the pimp...Simple.
Watch the frauds come out of the wood work attempting to protect hundreds of thousands of unscrupulous greedy, illegal alien hiring employers.
***California’s underground economy, which includes the landscaping, restaurant, farming and construction industries,***
I wondered how a friend of mine could live there in a rent house that ate up his entire monthly paycheck. In Kali, underground and off the books, is the only way to make a living there.
Here’s an idea - let the “cash only” businesses operate as they are - and of course, their employees won’t receive ANY benefits if there’s an accident, or they’re laid off, etc.
In other words - if you want to work for a cash-only business, expect to receive simple cash-only compensation and nothing more. In such an approach, the State’s costs are eliminated - because the worker can’t make a claim with the State.
Seems fair to me...
The terrorists one and the commie statists are winning. On bended knees, I thank the Lord above I was born in the 1950s and not later. I really fear and grieve for future generations of Americans who won’t know freedom.
It’s out of control...
Ya go after the slut and the pimp...Simple.
You go after every aspect of the problem. It is not just the business owners - who for some are making the decision between going out of business or circumventing oppressive regulation and burdensome taxes. To determine it is greed based without knowledge of all circumstances for each business is a bit disingenuous in my opinion.
I'm not willing to give a pass to welfare recipients and those that are collecting long-term UE benefits who are seeking methods to earn while protecting the monthly payout of our tax dollars.
Let all who have dirty hands face the consequences - which should be extreme and intended to deter others.
In my experience, it is very uncommon for any Chinese-run cash business to be paying their fair share of income taxes. Most likely, a sizable percentage of their sales are completely off the books and well-hidden.
This is one reason why they give you a dirty look if you try to pay with a credit card.
These folks are very adept at cutting costs, and feel no moral imperative to give the state its take.
Agree.
It is not just the business owners - 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, they should not be in business.
They are a big part of the problem and NEED to go out of business.
Until the greedy AH business owner finds one of his illegal slaves broke both arms, and it's found the unscrupulous business owner does nothing but hire illegals, doesn't pay withholding taxes, workers comp, etc.
Then they get everything they deserve!
It is not practical for many businesses to “play by the rules” in California. They have to “go underground” or go out of business or don’t even start up a business or they get out of California.
Where to begin? To start with the government has no business imposing an income tax on people's wages. No one should have to pay tribute to the government just for earning a living. Secondly, this country did fine without one for over 100 years until the corrupt politicians managed to sneak the 16th amendment into the constitution. Thirdly these businesses are not costing the government a frickin dime because most of them wouldn't be running if they followed the law. Many are just barely making it now. A large federal and state sales taxes would take care of the equality of taxes along with doing away with personal and corporate income tax.
Here comes the illegal alien apologist!
Profits regardless of consequences?
What’s the name of your business?
Here they come...
What about the the millions of low wage illegals hired by greedy employers in Texas, Arizona, Nevada, Florida, Georgia etc?
What's the excuse for them???
In Florida, at least, there are fewer of them than there were and getting fewer. The areas with the most expensive local regulations and/or the most corrupt local governments have most of them.
One more time.
What about the the millions of low wage illegals hired by greedy employers in Texas, Arizona, Nevada, Florida, Georgia etc?
What's the excuse for them???
Sooooo funny. I can imagine something on the order of the Keystone Cops running around arresting people and then releasing them because they are Hollywood bigshots, Food Stamp President key donors, state reps or senators, state regulators or administrators, etc. I think most legitimate businesses will have left the state so only the illegitimate businesses will be left and they can play the race card. I would guess a lot of smoke and mirrors with less recovered than spent.
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