About 300 billion dollars in taxes is lost in the united states alone due to an underground economy, which involves paying individuals cash rather than having them on the official payroll. a. true b. false

A , true

Explanation:

The underground economy includes millions of workers who would like to have legitimate "on the books" jobs, but who can't find them. Their only alternative is to work off the books and accept payment in cash. This practice is especially common in certain occupations such as construction, domestic work, and small food establishments. Businesses who pay their workers in cash avoid having to pay their share of payroll taxes--7.65% of employee salary up to an annual ceiling. They also don't pay unemployment insurance or workers compensation premiums. This can cut their payroll costs by 20% to 30%.

Off the books workers avoid having to pay their share of Social Security and Medicare taxes. However, if they don't pay enough into the system, they won't qualify for Social Security when they reach retirement age.

The "underground economy" consists of income earned under the table and off the books. It can include income from both legal and illegal activities. How big is the underground economy? Huge. It has been estimated that the worldwide underground economy amounts to $2 trillion per year. That's two-thousand billion dollars upon which no taxes are paid to governments around the world. The IRS says that the United States lost $500 billion in taxes in 2012 because of unreported income.

true

Explanation: