Monday, September 13, 2010

Cash Deals: Underground Economy Booming

Cindy Mitchell, a contractor in the tile business for 20 years, had a hunch her competitors hadn’t been playing by the rules when she discovered some rival companies bid half the amount she did on recent projects.
Her hunch was confirmed by workers formerly employed by competitors.
“I’ve even had some of my employees tell me they have been paid in cash,” said Mitchell, president of Citadel Tile and Marble in West Sacramento. “They don’t want to report it because they don’t want to get in trouble. It makes it unfair for those who play by the rules.”
Pay violations are rampant according to Mitchell and many others struggling to compete in a cutthroat marketplace. They say companies are illegally slashing payroll expenses by paying workers in cash, skirting workers’ compensation requirements, shorting workers on overtime and violating pay rules on public works jobs. It’s done to drive down their bids to win jobs.
Complaints about such tactics are soaring even as the state rolls out a new program to fight them.

Read more: 
Payroll violations soar with down economy - Sacramento Business Journal 


  1. fuck the government. i rather get pay by silver and gold. i work hard. i deserve my money and the government shouldn't get my money. the government can collect tax though my consumption.


  3. How about watching your mouth 8:56

  4. How dare they deprive their Democrat overlords a piece of the pie!!! Obama demands his cut!!!

    Their survival is secondary to a lazy government employee getting his paycheck.

  5. Where's the bullshit "what do you think" button pusher that leaves no explaination for his/her opinion? They haven't hit yet. Maybe after school?

  6. Is this not what is happening is Greece as well the people have figured out they are being scammed and fighting back by using an Underground Economy.

  7. I am an ex contractor who was fed up with competing against Jose and the rest of his illegal buddies who were willing to live together in a ratty trailer.
    If you are playing by the rules in CA. you get punished. If you are "undocumented" and working under the table, soaking up all the welfare bennys you can get don’t worry. Obama has your back! Just don’t forget it when it's time to vote.

  8. this is so stupid

    underground economey
    you mean all the illegals?
    all 30 million the goverment doesnt know?
    thier mowing the congreses lawn right now.

    this is such crap after all the jobs shipped overseas
    just know gee thiers cash buisness going on?

    this is a joke
    wallstreet stole trillions and the guy tileing a bathroom is destroying america?

    whats underground?
    a few crapy jobs .
    wow they just figured this out.
    america is so screwed.

    more like people dont trust banks!!!!!!!
    because thier thieves with all thier payment sceams
    holding your money calling you a terroist or doing fraud!!!!!

    and people are cheap hold payments and screw the contractor!!
    we are screwed. thanks congress for selling out america.

    not horhey the tile guy

  9. this article is so dum hey thier 30 million illegals working for cash

    im shocked!!!
    ask obama and the traitors in congress to bail them out

  10. Most contractors take cash only for their jobs too. There is no reason for the government to hack off half your earnings, what do they give us back in return exactly?

    And yes, it's more than half if you add up all the bullshit. The fed dings at least a third or so up front, then there is Social Security which most of us will never get, City tax, State Tax, Property Tax, tax on gas, Insurance and Registration for cars, water tax, water run off tax (proposed), random traffic infractions, bottle water tax, sales tax, home alarm permit tax, it just goes on and on and fucking on.

    It used to bother me that people cheated on taxes, but now I say good for them. At most all total taxes should be 10% total, there is absolutely no reason the government gets so much money. They just squander it or corrupt government officials bank $900k salaries. Government jobs should be capped at around $25/hr max. With only a 10% tax you could live off that easily anyway. The solution is to drive down taxes and government spending/earnings considerably.

  11. yeah they fall into their own trap-allow many to come across the border and work for cash-so the above board business struggles to compete on prices charged and makes a choice to bid a job for cash. And the more unemployed work for cash and the system repeats while instead they bail out banks-domestic and foreign-A result of gov's own making
    greece has underground economy so to avoid the VAT tax, sounds like everyone does it atleast partially

  12. Getting paid in cash is such a bad thing to the dishonest bastard-thieves not because of the money but because of the control. 9:04!!! You are right! This is not dishonest. Knowing what I know now, the dishonesty is simply rolling over for the pirates! THEY are the pirate and they are KILLING us! They have usurped our lawful government for a fake, legalistic corporation and they know no limits. Under their rule that you signed up for (with your SSN) you have no constitutional right to your property. They can take it ALL if they want. Read these sites and KNOW how screwed you have been:

    Skipping taxes is not only lawful but it is more than honorable. Hey! 8:56, don't wash your mouth out for me! Keep saying it over and over and over! Maybe some of the sheople will hear you and do the honorable thing. Dump this corrupt government in the river. Lets all press the reset button and get these thieves out of here!

  13. I work in the cash economy and it is the only way.

    Only stupid Democrats and Liberals pay taxes.

    Learn how to do it and get YOUR MONEY BACK.

  14. The rich and the big corporations pay little or no taxes.

    Americans live in a bailed out kleptocracy .

    If you do not support or afford paying that an Kleptocracy the little people must develop an "underground"cash economy as well as they can to survive .
    Its one form of mutual aid and solidarity rebelion.

  15. Did the politicians that bailed out the rich in the trillion dollars bailout bi-partizan coup ,despite massive and loud opposition by ordinary americans represent you?

    Who did they represent -the lobbyists and banksters-?
    Should you pay the cost of that in future by incresed taxation and the coming inflation?
    America once rose up in rebelion on the principle of:
    "No taxation without representation"

  16. There is no simple answer to any of this. But I can't blame any businessman for saving every dollar he can. The government has outlived it's usefullness. They are nothing but an oppresive tyrant. They have seemly reached the level that everyone is saying , enough is enough. Everyone is in a survival mode, raising cash any way they can. California is the template for the rest of the nation, and it's only going to get worse.


Everyone is encouraged to participate with civilized comments.