Paulie could do anything. Especially run up bills on the joint’s credit. And why not? Nobody’s gonna pay for it anyway. And as soon as the deliveries are made in the front door, you move the stuff out the back and sell it at a discount. You take a two hundred dollar case of booze and you sell it for a hundred. It doesn’t matter. It’s all profit.
Good Fellas 1990
Always pay the government first. In a dispute people have to sue to get things from you, the government can seize your assets first and you have to sue to get them back.
My mother on running a business
One of the incentives of an underground economy are the savings for all involved.
The business saves the money on taxes as they do not claim an employee on the books, they don’t have to worry about the various rules for them and if an employee is here illegally or on welfare he doesn’t have to worry about retaliation since as he can always choose to contact immigration or the welfare office to report to turn him or her in if they so choose.
Meanwhile on the other end of the coin the employee gets cash, no taxes, no social security, no medicare taken out. This means that even if paid “less” he is taking home more than an on the books employee or someone on a 1099. if such a person is on welfare of some sort, this unclaimed money doesn’t count against their benefits meaning an even larger income. this gives a competitive advantage for employment over a person working legally.
The bottom line is that is you have an employee & an employer willing to break the rules all the incentives are for both to do so.
And that brings us to the new Obama Amnesty.
While a person might suddenly not be eligible for deportation thanks to Amnesty that doesn’t give them blanket protection on every law they might have broken while underground.
Did they carry the insurance they legally needed to carry, did they report all illegal income? Were they working under the table? Nothing in the amnesty declaration immunizes them or their employers from the penalties and fines for violating any other rules and laws.
Furthermore as people under amnesty they will likely be under scrutiny, they will need to make sure all laws are being obeyed to protect themselves from losing the Amnesty granted.