They are going to have to close down every family run Asian and Mexican restaurant in the state. All the kids work for free off the books and all of it gets recycled back into the family pot, and I’m sure they don’t pay for the kids social security either. It is all off the books. For all I know, it is legal not to pay your kids for working in the family restaurant. Basically they become unpaid volunteers and I doubt that is illegal. But the point is, all of the cooks and servers and help who would be paying taxes into the state, when the family runs the restaurant, there is nothing buy the business paying taxes, as all the family are off the books.
Half the contractors in CA are actually employees and were dumped as employees simply so the employers could avoid workers compensation insurance.
As long as the family workers are working for free, there is no taxes or social security owed.
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.
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.
one of many reasons the government sees the family as enemy..
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.