It seems that our underground economy is growing. What is the underground economy? Remember all of those people yourself included that do business for cash. Cash that does not get reported to the government and no taxes are paid on. I have been aware of tax prepares who have one this. There are definitely contractors and tradesmen that do this on a regular basis. I know union people that do this to basically screw the union and line their own pockets.
The US underground economy is currently estimated to be about $1.2 trillion or 8% to 9% of the legitimate economy.
It is possible that If the IRS could collect all the taxes it says that it is owed from the underground economy in a given year, then the current budget deficit would disappear overnight.
According to Austrian economist Friedrich Schneider, “Taxation and regulation increased in most countries over the past 10 years…reducing the tax burden is the best policy measure to reduce the shadow economy, followed by a lessening of fiscal and business regulation.”
Remember even drug dealers are paying taxes on their income, through attorneys of course. They learned from Capone’s lesson. Others will just get into hock when exposed and be paying for the rest of their lives.