36:
99:
741:'s employment records uncovered discrepancies in the documentation of about 25% of the company's workers, implying mainly that they were undocumented immigrants. American Apparel fired about 1,500 employees that September as a result. ICE did not accuse American Apparel of knowingly employing workers without employment authorization, however, and American Apparel received no fines.
693:, authorities have focused enforcement resources on large-scale operations like undocumented immigrants who are employed by large companies. Discovery and enforcement of small-scaled unreported employment is typically through a secondary indiscretion like fraud, tax irregularities, and unrelated or partially-related civil/criminal violations of the employer or employee.
685:
Often, both the employer and employee agree on paying in cash. Frequently, the employer is running an unreported cash-based business. These methods make detection by authorities to be time-consuming and difficult. Most small-scale operations take place without any real enforcement effort. Landscaping
652:
Again, paperwork, compliance, and knowledge of labor laws are prohibitive for the small amount of work that is performed. Although illegal, side businesses generate relatively little revenue and so are rarely the target of tax enforcers. Eventually, professional employees have enough work to be able
660:
Those who are unlikely to find employment through the reported economy, including those with past criminal records or current warrants as well as illegal immigrants can be reasonably productive and self-sufficient. That keeps them from engaging in less-desirable activities like theft and drug use.
676:
Short-term youth employment is often unreported but can be very beneficial. A teenager hired to aid in constructing a shed or barn, for example, learns valuable skills and responsibility. Most youth would not be employed for short-term projects if employment had to be reported. Government revenue
668:
is often unreported at first. A home cook, for example, may sell a few pies to friends and co-workers without filing necessary sales taxes or self-employment taxes. Although that is usually illegal, it may lead to a legitimate and beneficial business and is often how small businesses are started.
720:
had demonstrated a new strategy to curb the employment of undocumented immigrants by focusing on companies that hire them in the first place. By concentrating on the businesses employing the large numbers of unauthorized workers, the number of undocumented immigrants working in the US would drop
630:
Many entrepreneurs fail to report their first part-time hired employees. The complexity of employment regulations and large amount of paperwork can be daunting, especially when someone is needed for only a few hours a week. That early underground employment may be a vital step in the growth of a
637:
fill immediate gaps during labor shortages in some segments of the construction and landscape industries. Background checks, identification, required paperwork, and government filings for only a day's work can be prohibitive. That encourages unreported employment of short-term laborers.
696:
Although the federal and/or state government may arrest, prosecute, and imprison an individual for engaging in commerce without the state's approval, the high cost of such enforcement is usually prohibitive and impossible except for the most egregious cases.
1921:
641:
A large amount of work for only a day or two is unreported. Although nanny laws make allowances for the homeowner, businesses are typically required to fill out and file several hours' worth of paperwork even for an hour's worth of work.
1891:
595:
Those who are employed under the table, including undocumented immigrants, may be denied rights that legally employed workers have, such as minimum wage, various benefits (particularly unemployment benefits), and fair treatment.
1906:
1695:
645:
The amounts are too small for tax collecting agencies to pursue and the paperwork too arduous to file and so legitimate micro-employment among businesses is rare. However, it is an important resource for many small businesses.
677:
collectors typically ignore enforcement of such beneficial, unreported employment. Youth-run lemonade stands that have been shut down by police for example have received an enormous amount of bad press and public outcry.
1391:
621:
Government revenue agencies look for lifestyles out of line with the income reported. They have tools that aid in assessing unreported taxes, which can result in large fines or jail time for the employer.
672:
In some countries, the tax system attempts to set minimum thresholds on the amounts liable. However, there is still the burden of compliance with the bookkeeping requirements to prove that one is exempt.
1631:
1386:
2181:
1762:
1096:
1809:
1457:
1060:
Reflections on the
Meaning and Measurement of Unobserved Economies:What do we really know about the "Shadow Economy"? by Edgar L.Feige Journal of Tax Administration 2016, Vol. 2, No. 1
1401:
1193:
1396:
2126:
2428:
1601:
465:
Reduced/eliminated expenses or need for bookkeepers, human resource specialists, lawyers, accountants, payroll services, insurance agents and other employment specialists
1834:
1544:
46:
1870:
1417:
287:
While the hiring of the employee may or may not be legal in itself, it is often done when the employer or the employee intentionally fails to obey one or more laws.
2131:
1747:
1359:
1354:
1089:
1576:
1556:
1340:
547:
Ability to hire those who were formerly qualified, and still potentially able to do the job (e.g. blacklisted, disbarred, forced retirement, struck off, etc.)
2285:
1911:
1901:
544:
Ability to hire employees according to personal traits not related to suitability for employment (e.g. gender, sexuality, ethnic/religious affiliations etc.)
2106:
1767:
588:
was weakened by more than two million workers being paid without paying taxes. Indeed, it is estimated that over US$ 214.6 billion went unreported to the
2967:
2501:
2141:
1896:
1799:
1539:
1371:
2290:
1082:
2262:
2121:
1839:
1581:
1133:
770:
734:
1611:
1349:
1345:
1814:
957:
2433:
2423:
1782:
1606:
1442:
618:
If practices are widespread, legitimate businesses may be undercut by and may have difficulty competing with those who employ staff illegally.
116:
1069:
603:
may not be entitled to collect unemployment benefits. They have limited causes of action against their employers for mistreatment, on-the-job
2876:
2668:
1989:
806:
Feige, Edgar L. (December 11, 2003). "Defining And
Estimating Underground And Informal Economies: The New Institutional Economics Approach".
581:
1819:
2673:
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500:
1984:
1319:
2835:
2295:
1655:
1482:
1422:
237:
or avoiding and violating other laws such as obtaining unemployment benefits while being employed. The working contract is made without
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In professional fields like architecture, or marketing, unreported work is typically the first step to starting a legitimate business.
2658:
1596:
2856:
1757:
854:
182:
163:
80:
791:
Feige, Edgar L. (2016). "The
Meaning and Measurement of Unobserved Economies: What do we really know about the "Shadow Economy"?".
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1954:
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1064:
142:
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2050:
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1616:
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149:
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352:
302:. It is hidden from the state for tax, social security, or labor law purposes but is legal in all other aspects.
1289:
2228:
2156:
1979:
1529:
1502:
1437:
1188:
909:"America's Underground Economy: Measuring the Size, Growth and Determinants of Income Tax Evasion in the U.S."
1014:
3009:
2963:
2886:
2866:
2623:
2413:
2248:
1974:
1381:
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607:, or lack of payment. Employers have limited cause of actions against employees who commit crimes such as
600:
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2010:
1717:
1487:
1274:
1138:
765:
574:
517:
335:
258:
156:
872:"Invisible Migration and "Perverse" Capital: Exploring the Experiences of Migrant Delivery Riders"
2921:
2775:
2770:
2398:
2015:
1804:
1586:
825:
665:
276:, as is sometimes required by law or otherwise expected by the industry's client base, such as a
657:
taxes are reported. The business then becomes a legitimate and beneficial part of the economy.
2983:
2954:
2734:
2678:
2171:
2146:
2025:
2005:
1829:
1672:
1534:
995:
889:
850:
530:
504:
409:
933:"New estimates of overseas U.S. currency holdings, the Underground economy and the "Tax Gap""
2830:
2795:
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2151:
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1304:
654:
538:
525:
469:
380:
368:
299:
295:
238:
570:
Unreported employment can have harmful effects on government, employers, and employees.
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2840:
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1959:
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to leave their employer and become independent. Then, paperwork is usually filed and
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2800:
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1969:
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573:
Unreported employment directly affects the government's ability to fund resources (
453:
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262:
254:
932:
908:
492:
Flexibility in hiring short-term employees without excessive overhead or paperwork
958:"Weak outlook for state seen / Many are working under the table, UCLA group says"
2780:
2704:
2448:
2352:
1922:
Border
Security, Economic Opportunity, and Immigration Modernization Act of 2013
1432:
1366:
555:
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358:
339:
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234:
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Avoid allowable income limits by a person receiving certain benefits, such as
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893:
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2332:
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1279:
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634:
486:
1392:
Illegal
Immigration Reform and Immigrant Responsibility Act (IIRIRA) (1996)
686:
is a good example of a cash-based business that is frequently unreported.
403:
2973:
2765:
2602:
1824:
1792:
1524:
1514:
750:
725:
would be doing so in a less confrontational manner than in recent years.
509:
392:
250:
1070:
European
Foundation for the Improvement of Living and Working Conditions
2539:
479:
447:
372:
348:
277:
2317:
2182:
National Korean
American Service & Education Consortium (NAKASEC)
1590:
1402:
1397:
Nicaraguan
Adjustment and Central American Relief Act (NACARA) (1997)
976:
272:, and the employer often does not check the employee's background or
1059:
577:). It causes a tax gap by the reducing tax revenue of a government.
2463:
1387:
Immigration and
Nationality Technical Corrections Act (INTCA) 1994
612:
550:
Ability to hire underage, teenage employees without going through
2240:
561:
Quicker, faster hiring process from application to job attainment
474:
Protesting actions or policies of the governing authorities e.g.
462:
Elimination of paperwork, bookkeeping, and regulation compliance
269:
2244:
1458:
Ending Discriminatory Bans on Entry to The United States (2021)
1078:
1418:
American Competitiveness in the 21st Century Act (AC21) (2000)
589:
223:
92:
29:
45:
deal primarily with the United States and do not represent a
434:
Reasons one may work or pay a worker cash-in-hand include:
27:
Illegal employment that is not reported to the government
54:
977:"Side hustles and tax evasion: The telling statistics"
907:
Feige, Edgar L. & Cebula, Richard (January 2011).
846:
A Commodified World?: Mapping the limits of capitalism
1423:
Legal Immigration Family Equity Act (LIFE Act) (2000)
2127:
Coalition for Humane Immigrant Rights of Los Angeles
2904:
2849:
2758:
2692:
2633:
2595:
2569:
2553:
2527:
2518:
2472:
2366:
2310:
2278:
2215:
2090:
2064:
1998:
1945:
1879:
1853:
1736:
1630:
1565:
1470:
1410:
1333:
1237:
1171:
1147:
1126:
1113:
123:. Unsourced material may be challenged and removed.
2429:National War Tax Resistance Coordinating Committee
1015:"US Shifts Strategy on Illicit Work by Immigrants"
314:sectors of unreported jobs include the following:
233:. The employer or the employee often does so for
1871:United States Border Patrol interior checkpoints
996:"Here Illegally, Working Hard and Paying Taxes"
2132:Coalition for Comprehensive Immigration Reform
1810:List of people deported from the United States
2256:
1557:Trump administration family separation policy
1090:
1040:Immigration Crackdown With Firings, Not Raids
43:The examples and perspective in this article
8:
2286:Conscientious objection to military taxation
1607:Immigration and Naturalization Service (INS)
2107:California Coalition for Immigration Reform
257:. It is a part of what has been called the
2524:
2502:The Cold War and the Income Tax: A Protest
2263:
2249:
2241:
2142:Federation for American Immigration Reform
1123:
1097:
1083:
1075:
1065:US Immigration and working under the table
2291:List of historical acts of tax resistance
1917:Uniting American Families Act (2000–2013)
1912:Comprehensive Immigration Reform Act 2007
1902:Comprehensive Immigration Reform Act 2006
1845:Unaccompanied minors from Central America
1602:U.S. Citizenship and Immigration Services
1372:Immigration Reform and Control Act (1986)
883:
183:Learn how and when to remove this message
81:Learn how and when to remove this message
2122:Center for Migration Studies of New York
1265:Immigration Act 1917 (Asian Barred Zone)
1134:Nationality law in the American Colonies
975:McDermott, Jennifer (3 September 2017).
771:U.S. Immigration and Customs Enforcement
735:U.S. Immigration and Customs Enforcement
2056:"Faithful Patriot" (2018–present)
1612:Executive Office for Immigration Review
783:
2434:Northern California War Tax Resistance
2424:National Campaign for a Peace Tax Fund
2072:California DREAM Act (2006–2010)
1038:Preston, Julia (September 29, 2009). "
2877:Campaign Against Home and Water Taxes
2669:Revolt of the Comuneros (New Granada)
1320:Alien Fiancées and Fiancés Act (1946)
582:University of California, Los Angeles
241:costs and does typically not provide
7:
2674:Regulator Movement in North Carolina
2394:Association of Real Estate Taxpayers
2384:All Britain Anti-Poll Tax Federation
2041:"Return to Sender" (2006–2007)
1346:Immigration and Nationality Act 1952
419:Fixing cars, motorcycles, and mopeds
121:adding citations to reliable sources
2296:Tax resistance in the United States
1727:Department of State v. Muñoz (2024)
1697:DHS v. Regents of the Univ. of Cal.
1582:Immigration and Customs Enforcement
1184:Act to Encourage Immigration (1864)
584:, study showed that the economy in
452:Cheaper workforce and avoidance of
2659:No taxation without representation
1815:Mexico–United States border crisis
1597:U.S. Customs and Border Protection
931:Feige, Edgar L. (September 2009).
25:
2857:Anti-austerity movement in Greece
2036:"Streamline" (2005–present)
1758:Central American migrant caravans
1305:Bracero Program (1942–1964)
2867:Edward and Elaine Brown standoff
2836:Women's poll tax repeal movement
2404:Committee for Non-Violent Action
1820:Mexico–United States border wall
1295:Filipino Repatriation Act (1935)
1106:Immigration to the United States
994:Porter, Eduardo (19 June 2006).
870:Robins, Daniel (7 August 2023).
554:or hire those below the minimum
397:Short-term work and day laborers
97:
34:
1577:Department of Homeland Security
294:, unreported employment evades
108:needs additional citations for
2917:Potentially dangerous taxpayer
2117:Center for Immigration Studies
2046:"Jump Start" (2006–2008)
2031:"Front Line" (2004–2005)
1681:Chamber of Commerce v. Whiting
1622:Office of Refugee Resettlement
1377:American Homecoming Act (1989)
1013:Preston, Julia (3 July 2009).
876:International Migration Review
599:Under-the-table employees who
558:(e.g. for short-term projects)
1:
2459:Women's Tax Resistance League
2167:Minuteman Civil Defense Corps
2011:"Peter Pan" (1960–1962)
1773:Eugenics in the United States
849:. Zed Books. pp. 73–74.
793:Journal of Tax Administration
716:report in February 2013, the
265:or the non-observed economy.
2968:history in the United States
1835:Illegal immigrant population
1617:Board of Immigration Appeals
1453:Executive Order 13780 (2017)
1448:Executive Order 13769 (2017)
1341:UN Refugee Convention (1951)
1255:Gentlemen's Agreement (1907)
822:10.1016/0305-750x(90)90081-8
459:Convenience for both parties
351:service (sometimes known as
229:that is not reported to the
2608:Revolt of the papier timbré
2051:"Phalanx" (2010–2016)
2026:"Endgame" (2003–2012)
1897:McCain–Kennedy (2005)
1887:DREAM Act (2001–2010)
1866:Canada–United States border
1861:Mexico–United States border
1428:H-1B Visa Reform Act (2004)
1290:Tydings–McDuffie Act (1934)
962:The San Francisco Chronicle
956:Abate, Tom (24 June 2011).
592:last year alone from this.
400:Short-term youth employment
57:, discuss the issue on the
3046:
2419:Irish National Land League
2379:Aide-toi, le ciel t'aidera
2187:Negative Population Growth
2177:National Immigration Forum
2162:Migration Policy Institute
1937:US Citizenship Act of 2021
1493:Temporary protected status
1275:Emergency Quota Act (1921)
843:Colin C. Williams (2005).
476:sovereign citizen movement
468:Not checking or showing a
282:professional certification
268:Payments are generally in
2613:Revolt of the va-nu-pieds
2561:Cornish Rebellion of 1497
1520:Security Advisory Opinion
885:10.1177/01979183231191746
729:American Apparel incident
391:trading, agriculture and
2229:Missing in Brooks County
2157:Mexicans Without Borders
1657:US v. Bhagat Singh Thind
1530:National Origins Formula
1214:Chinese Exclusion (1882)
1189:Civil Rights Act of 1866
615:, or abuse of employer.
2887:Movimiento Pos Me Salto
1508:Central American Minors
1438:Secure Fence Act (2006)
1300:Nationality Act of 1940
1250:Naturalization Act 1906
1224:Immigration Act of 1891
1209:Immigration Act of 1882
1199:Naturalization Act 1870
1179:Naturalization Law 1802
1155:Naturalization Act 1790
425:apart from primary jobs
385:painting and decorating
204:working under the table
132:"Unreported employment"
2816:Poplar Rates Rebellion
2664:Philadelphia Tea Party
2223:Borderland (TV series)
2077:Arizona SB 1070 (2010)
1550:Unaccompanied children
1325:Luce–Celler Act (1946)
1115:Relevant colonial era,
631:healthy open economy.
2892:Yellow vests protests
2882:Movimento Passe Livre
2862:Anti-Bin Tax Campaign
2684:White Lotus Rebellion
2587:Revolt of the Pitauds
2358:Unreported employment
2302:List of tax resisters
1800:Immigration reduction
1711:Niz-Chavez v. Garland
1315:War Brides Act (1945)
1194:14th Amendment (1868)
200:money under the table
196:Unreported employment
2912:Income tax threshold
2791:Champaran Satyagraha
2481:An Act of Conscience
2414:I Don't Pay Movement
2389:Anti-Poll Tax Unions
2102:Arizona Border Recon
2082:Alabama HB 56 (2011)
1946:Immigration stations
1880:Proposed legislation
1778:Guest worker program
1753:Brooks County, Texas
1665:US v. Brignoni-Ponce
1382:Immigration Act 1990
1285:Immigration Act 1924
1270:Immigration Act 1918
1260:Immigration Act 1907
1245:Immigration Act 1903
718:Obama administration
117:improve this article
63:create a new article
55:improve this article
2979:Taxation as slavery
2940:Redemption movement
2936:Freeman on the land
2786:Bondelswarts affair
2750:Wallachian uprising
2740:Tancament de Caixes
2715:Hut Tax War of 1898
2577:Croquant rebellions
2021:"Gatekeeper" (1994)
1948:and points of entry
1840:Reverse immigration
1719:Sanchez v. Mayorkas
1632:Supreme Court cases
1488:Visa Waiver Program
1483:Permanent residence
1310:Magnuson Act (1943)
1139:Plantation Act 1740
766:Illegal immigration
664:Self-employment in
575:government spending
518:illegal immigration
406:and restaurant work
298:and is part of the
259:underground economy
2922:Render unto Caesar
2776:Bardoli Satyagraha
2771:Bambatha Rebellion
2488:Civil Disobedience
2399:Catalunya Diu Prou
1805:Immigration reform
1641:US v. Wong Kim Ark
1587:U.S. Border Patrol
1503:Green Card Lottery
1471:Visas and policies
1433:Real ID Act (2005)
1367:Refugee Act (1980)
1119:international laws
1108:and related topics
1044:The New York Times
1019:The New York Times
1000:The New York Times
721:dramatically. The
666:cottage industries
438:Avoidance of wage
261:, shadow economy,
2992:
2991:
2984:Taxation as theft
2955:Tax noncompliance
2932:Sovereign citizen
2900:
2899:
2735:Saminism Movement
2679:Whiskey Rebellion
2646:Fries's Rebellion
2238:
2237:
2172:Minuteman Project
2147:Improve The Dream
2065:State legislation
2016:"Babylift" (1975)
1990:Washington Avenue
1985:Sullivan's Island
1907:STRIVE Act (2007)
1830:March for America
1783:Human trafficking
1673:Zadvydas v. Davis
1535:Expedited removal
1466:
1465:
1117:United States and
809:World Development
531:Tax noncompliance
505:public assistance
410:Human trafficking
367:Various types of
336:Construction work
292:developed nations
193:
192:
185:
167:
91:
90:
83:
65:, as appropriate.
16:(Redirected from
3037:
3025:Informal economy
2831:Vedaranyam March
2796:Kheda Satyagraha
2710:House Tax Hartal
2641:Boston Tea Party
2545:Peasants' Revolt
2525:
2509:Vyborg Manifesto
2338:Self-sufficiency
2265:
2258:
2251:
2242:
2137:Community Change
2112:CASA of Maryland
2092:Non-governmental
2006:"Wetback" (1954)
1932:RAISE Act (2017)
1892:H.R. 4437 (2005)
1280:Cable Act (1922)
1229:Geary Act (1892)
1219:Scott Act (1888)
1124:
1099:
1092:
1085:
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1036:
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887:
867:
861:
860:
840:
834:
833:
803:
797:
796:
788:
756:Informal economy
739:American Apparel
552:child labor laws
310:Common types of
243:health insurance
216:money-in-the-paw
212:cash-in-the-claw
198:, also known as
188:
181:
177:
174:
168:
166:
125:
101:
93:
86:
79:
75:
72:
66:
38:
37:
30:
21:
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3044:
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3035:
3034:
2995:
2994:
2993:
2988:
2896:
2845:
2754:
2688:
2629:
2618:Salt Tax Revolt
2591:
2565:
2549:
2520:
2514:
2495:Clericis laicos
2468:
2409:Fasci Siciliani
2362:
2306:
2274:
2269:
2239:
2234:
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2152:Mexica Movement
2095:
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2086:
2060:
1994:
1947:
1941:
1927:SAFE Act (2015)
1875:
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1788:Human smuggling
1763:Economic impact
1741:
1739:
1732:
1626:
1570:
1568:
1561:
1462:
1406:
1334:1950–1999
1329:
1238:1900–1949
1233:
1204:Page Act (1875)
1167:
1143:
1120:
1118:
1116:
1109:
1103:
1056:
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941:
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842:
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837:
816:(7): 989–1002.
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790:
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785:
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747:
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710:According to a
708:
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683:
655:self-employment
628:
601:lose their jobs
568:
539:social security
526:organized crime
470:criminal record
432:
381:window cleaning
369:self-employment
308:
300:informal sector
296:withholding tax
239:social security
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126:
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114:
102:
87:
76:
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52:
39:
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18:Under the table
15:
12:
11:
5:
3043:
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3022:
3017:
3012:
3010:Tax resistance
3007:
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2905:Related topics
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2872:Bonnets Rouges
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2199:
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2192:No More Deaths
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1738:Related issues
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1355:Section 212(f)
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2781:Beit Sahour
2705:Dog Tax War
2582:Rappenkrieg
2449:Peacemakers
2353:Tax evasion
1965:East Boston
1649:Ozawa v. US
1478:Visa policy
1443:DACA (2012)
681:Enforcement
556:working age
485:Evasion of
440:garnishment
423:Second jobs
377:electrician
359:Gig economy
340:landscaping
331:foodservice
327:babysitting
306:Common jobs
274:credentials
235:tax evasion
3020:Employment
3005:Labour law
2999:Categories
2826:Salt March
2521:by century
2374:Addiopizzo
2197:NumbersUSA
1999:Operations
1980:San Ysidro
1740:and events
1567:Government
1024:8 February
981:finder.com
942:2012-03-05
937:Mpra Paper
917:2012-03-05
912:Mpra Paper
778:References
626:Advantages
586:California
501:disability
404:Barbacking
371:, such as
312:employment
231:government
227:employment
173:March 2024
143:newspapers
2964:arguments
2945:Tax haven
2821:Turra Coo
2745:Tithe War
2626:in Moscow
2624:Salt Riot
2519:Campaigns
2454:Planka.nu
2333:Rebellion
1975:Otay Mesa
1854:Geography
1540:Detention
894:0197-9183
737:audit of
487:insurance
393:gardening
344:farm work
59:talk page
2974:Tax riot
2766:Agbekoya
2620:in Spain
2603:Angelets
1793:Coyotaje
1525:E-Verify
1515:US-VISIT
751:Side job
745:See also
701:Examples
510:Fugitive
373:plumbing
361:such as
321:such as
251:vacation
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2311:Methods
1768:Effects
830:7899012
795:(30/1).
689:In the
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541:evasion
480:agorism
448:alimony
430:Reasons
353:hacking
349:Taxicab
278:license
249:, paid
245:, paid
224:illegal
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2654:affair
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2318:Barter
2279:Topics
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2464:Zuism
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613:theft
537:, or
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503:, or
478:(see
329:, or
218:, or
164:JSTOR
150:books
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2850:21st
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1350:1965
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1026:2013
890:ISSN
851:ISBN
456:laws
270:cash
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880:doi
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