Gerry Siegel (Honolulu) 
, Sep 05, 2010; 02:41 p.m.
Does this sound familiar?
It comes in the mail.The bid for a big home repair. Along with a handwritten note . ” On the other hand if you did choose to pay in cash that figure would be $2000.00 less..”
What would our friendly advisors, call them Mr Scratch and the Rev. Mr. Webster, say. Maybe something like this:
Mr Scratch: Don’t be silly, take the cash under the table deal. Everybody does it. Who really loses, the tax us to death government. Aren’t you being squeezed all the time in that state. Be practical. So OK ease the conscience. Give the two grand to charity if you choose. Go on a trip,take pictures, you can handle this..don’t say you never hired a shade tree mechanic...
Reverend Webster: Don’t listen to that Scratch scoundrel. Don’t you always fight for better public schools, libraries, police services?. Who the hell pays for them if nobody declares income for taxes. Do you really want to be a party to this shady transaction.
Scratch: What’s so unlawful?. Most of the world works just that way. The spiff, the kickback, the off shore banking, it is the self interest economic principle right in your lap. A fact of modern life, get with the program. Follow your instinct,Gerry.
Webster: It is not right, do a cost benefit analysis if you like, but do what is right. What example are you setting. Follow your instinct, Gerry.
My question if you care to comment. How would you sort out this kind of thing. When the practical and the principle are at odds. (Did I hear some smartypants say just rise above principle:-)?)
Phil B 
, Sep 05, 2010; 02:49 p.m.
Forget Scratch. Forget Webster. YOU pay YOUR taxes. Why should this other guy not pay his? Chances are his work is as shady as his bookkeeping. I'd look for a legitimate contractor.
Dave Sims 
, Sep 05, 2010; 02:54 p.m.
What Phil B. said. If he's going to screw over Uncle Sam, he's going to screw you over, if he gets the chance. And I bet his underwear are torn, too.
D Taylor 
, Sep 05, 2010; 02:59 p.m.
These sort of deals are always tempting, until something goes wrong and you've got no way to get your money back/ shoddy workmanship rectified
Anders Hingel 
, Sep 05, 2010; 03:05 p.m.
Gerry you are right ask what people do not what they think they would do. The answers you get is probably attitudes, however.
One dollar out of ten in the US economy is in the "informal sector" like what you are referring to.The greatest part of that is unregistered workers in companies. This is far less than in other countries you might compared yourself to. It is almost three times higher in Greece and Italy and twice in Denmark and France.
Dave Sims , Sep 05, 2010; 03:28 p.m.
The answers you get is probably attitudes, however.
Yep, Anders knows us personally, so he knows exactly what we would do. I always pay tradesmen/women with a cheque, although it's mainly for record-keeping. (Now, how many months in advance did I pay my lawn guy . . . ?) It's about the only thing I still use cheques for.
For big-ticket stuff like renos, you'd be crazy to pay under the table for that reason alone. Plus, the co*******r is stealing books from your schools, and armor from your marines. (The asterisks stand for 'contractor', or any other ten-letter word of your choice.)
Juergen Sattleru , Sep 05, 2010; 03:30 p.m.
I used to own a home in France - when ever I had to hire a contractor, they would ALWAYS ask for money under the table. I don;t think there is a single contractor in all of France who reports all of his/her earnings. Compared to the US, people are taxed to the max in Europe - so it is understandable that everyone tries to circumvent the taxman.
Phil B , Sep 05, 2010; 03:47 p.m.
You got me Anders. I pay my shade tree mechanic, well, not in cash, but in beer; because we're friends doing each other favors. Same with my buddies who come over to help put an awning over Mom's patio. Friends help each other. Now, the guy who poured the patio got a check, and never asked for cash.
"...unregistered workers..." Hmmm. Imagine the can of worms that topic could open up.
Christine Mitchell 
, Sep 05, 2010; 03:50 p.m.
Plus, the co*******r is stealing books from your schools, and armor from your marines.
We pay more than enough taxes for books and armor - many, many times over what is needed for those expenses. I don't think you'll see the taxes on that 2K anywhere in your community. It just pays for more government bloat so politicians can justify their existence.
Gerry Siegel (Honolulu) , Sep 05, 2010; 04:12 p.m.
You know, I think Anders you have a handle on the numbers on the underground economy, meaning big time here too as well as over the pond. My contractor is large, mostly commercial jobs.Likely pays substantial taxes on those. Has to keep a crew fully occupied. I think these guys, maybe I say,also will take on some amount of just cash jobs. Keeps marginal tax rate down i suppose.... And gives the homeowner a break at the time (who would pay the tax both local and Fed in the bid,that is how I understand how small businesses operate).
Will they be likely to screw the ones that they give that break to? Do slipshold work. I am not so sure.. economics kind of suggests otherwise if the under the table thing is as big as you suggest Anders.
I agree that a check does give one recourse if worse comes to worse. And that is a practical checkoff point..On the other hand, I have had above the table up and up transactions that went afoul as well..hmm.
