Thursday, March 19, 2015

Underground Economy

The underground economy or the "shadow economy" is the jobs that, in the governments eyes, are illegal because the workers are being payed under the table. These workers are not paying any types of taxes because their incomes are not reported. On the positive side, the underground economy has circulated, just last year, $2 trillion dollars. This is positive because these people involved In this economy are spending money because of how much they make and putting it towards our regular economy, making it stronger. Although, it also has its downsides. Because of the large among of Americans not paying taxes and being payed under the table, it leaves more taxes to be payed by everyone who is on the books. If these people were to pay taxes , the government would not have to raise taxes, they might even lower them in result. 

No comments:

Post a Comment