The Underground Economy And Why It Is Bad For All Of Us
Keywords: underground economy
Basically, the underground economy consists of people who are independent operators and who avoid or, more accurately, evade any legal responsibilities to their customers, communities or the country in which they live and from which they draw all the services they can manage.
A good catchall term for members of the underground economy is Leeches. When you use a member of the underground economy you use a person or an employer of other persons who:
-Does not pay income tax
-Does not pay GST or PST
-Does not pay workers compensation premiums
-Does not make employer contributions to the Canada Pension Plan or Employment Insurance
-Does not pay Employment Standards Act benefits so workers can have vacations and statutory holidays with pay
-Does not accept credit cards or, in most cases, cheques or other traceable payments
-Does not provide or honour guarantees or warrantees
-Uses and sells the cheapest and least durable products including counterfeit products
-Walks away from jobs at any time
-Has no business address or reliable means of contact
-Hires unqualified and potentially dishonest, unbondable, helpers
-May have a criminal record
-May be an illegal alien with no ties to the community or country
-Does not carry liability insurance and is likely uninsurable
-Is not licensed by any authority
-Is not certified for the work being done
-Is not trained
-Is not competent in at least some of the services offered and probably all
-Will not subject his or her work to inspection by any qualified person or agency.
This list could go on to include all of the negatives which can be countered easily by regulations, standards and mores prevalent in the legitimate above ground economy.
So what? If you deal with an unlicensed guy who paves your driveway or mows your lawn or fixes your roof for half of the price of a true professional, don’t you save money? And isn’t saving money a really good thing in any kind of economy? This is the dumbest way to look at dealings with the underground economy. An illegitimate construction contractor can cut his or her labour costs by about half by skipping all the ground rules of a legitimate contractor (see above).
This contractor can hire any yoyo to work on your roof or your electrical system or your plumbing. This contractor and his ilk cost our governments and the workers’ comp system more than $1.5 billion a year.
This means the government -this is us, folks- can’t adequately fund the apprenticeship programs we need badly across Canada. It can’t provide all the health and protection we need in the workplace.
It means also that the legitimate contractor, who pays for training and skilled sub trades and top grade products and a million other things we need, is severely damaged with unfair competition.
In addition, while you are paying your full share of income taxes, GST, PST and health costs, all the leeches who make up about 15 percent of our economy are costing us about $30 billion a year by not paying these taxes. Don’t blame only government when it can’t provide better roads or an improved environment or the zillion other things we want and need.
Blame yourself for abetting tax evasion by the underground economy leeches who are laughing at you all the way to their banks.
Every time you give a buck to the underground economy, you are taking a lot of that dollar away from elderly Canadians who depend on old age security payments and other supplements to their meager incomes.
You are depleting the money available to eligible unemployed workers including those who have to take time off to care for gravely ill or dying family members. You are potentially depriving low and modest income families of benefits from the Canada Child Tax Benefit and the GST credit.
You are taking money out of resources that should go to needy children, our health care system, post-secondary education and all our social services.
Think about this: the services we use to live decent lives in Canada are paid for, largely, by taxes paid by each of us. Without this money, Canada would enjoy a quality of life similar to Iraq or the Sudan but even worse because of our cold climate.
Deduct about 15 percent of the money we need and you put a huge hole in our services. That’s what the underground economy does every year. We are chumps for paying people to take money and resources out of our pockets while giving us, in all cases, inferior or, at least, questionable goods and services with no consumer protection whatsoever.
We might as well carry signs around our necks reading ‘Pickpockets welcome’ with a big arrow pointing to the pocket or purse where we keep our cash.
The next time someone comes to your door or telephones you offering cheap moving, renovation, land in Florida, car repairs or anything else in return for cash up front and no questions asked, ask yourself if you want your pocket picked once again or if you would rather pay for professional work from the above ground economy.
Ask yourself if you want to get involved in a criminal conspiracy to evade paying taxes or do you want everyone to pay fair taxes for the services your family needs. Ask yourself why you would want your blood sucked by a leech when you can deal, instead, with the good guys in Canada’s marketplaces.
Dale Goldhawk – journalist, author and broadcaster, Dale has protected consumers through his shows on CBC Television, CBC Radio, Global Television and the CTV Television Network and his columns in the Toronto Telegram and other newspapers. www.goldhawk.com, media@goldhawk.com
Previous Articles Highlighter:
Camping With Beautiful Views In The Three Rivers Area In South Central New Mexico (1)
Although this campground can accomodate large RVs, the only amenities offered are vault toilets and water spigots - but the trade off of amenities for the beautiful views is worth it.
5 Reasons Why People Fail Online Education (2)
Some online students can't designate their time between all the tasks required to complete online courses, as well as balance the rest of their lives. It is suggested that online students stay current on their coursework as much as possible because once you fall behind, it's very difficult to catch up, especially if you are not comfortable in an online classroom setting in the first place.
Banks Repay Millions In Unfair Fees (3)
If they refuse or give you some sort of lousy explanation that we all know smells then complain and threaten them with the Ombudsman. Very few Financial Services Managers want the world to find out exactly how they treat their customers.
How To Choose Golf Travel Bag Cases (4)
If you have decided to buy a travel case for your golf bag, think on why you want it. Consider the features that would be essential to you, then note down those that would be just 'nice to have'.
Which Phone, Plan And Provider Are Right For You? (5)
Analog connections are now becoming obsolete, in favor of the clearer and battery-saving digital connection. Many units on the market now are tri-mode, meaning that in addition to analog they use the digital signals of TDMA and CDMA.
The Check Clearance Process From A Business Perspective (6)
When shopping, the customer many times thinks to his or herself whether he or she should pay cash, charge it, or pay for the purchase with a check. He or she may ponder this question in their mind all the way to the check out counter.
Key Considerations For Selecting Auto Insurance (7)
In becoming informed you will need to know how to research, and what questions to ask. The three key considerations when purchasing car insurance are price, coverage, and company.
Learn How To Handle A Car Crash Scene (8)
Write down the time of the accident and the visibility (clear, foggy). Also, if the accident happened inside a town, take note of there is proper lighting (in the case that the accident happened at night, of course).
Two Main Concerns Associated With Online Degrees (9)
Degrees-R-Us is one such example, promising bachelor's, master's, or doctoral degrees in about 10 days, and are willing to show one graduated with honors for a higher "tuition fee." Some states like Oregon, Iowa, and South Dakota are starting to crack down on these types of schools within their borders.
Backpack: Camper's Camel (10)
But remember that the weight of the backpack is not nearly as important as the durability of the material. Your backpack should be made of strong, water-proof material. The backpack should be able to withstand hard wind, heavy rain and snow, and you should be able to basically throw it on the ground and not worry about it tearing or leaking water onto your gear.
Newer Articles Highlighter:
Computer Hardware And Software (1)
External Connectors Many I/O devices, upgrades and peripherals to computers now connect through external interfaces instead of internal cards. Look for systems that have at least six USB 2.0 and one IEEE 1394 or FireWire ports.
The Importance Of Submitting To Web Directories (2)
And, being the number one result with the big search engines is an arduous task that never ends. So, many webmasters choose to submit to web directories in order to increase their traffic.
How To Appear On The First Page Of Google Search Results (3)
You should have at least 100 quality links. How to get links There are many creative ways to generate links to your site: Ask friends, customers or suppliers to link to your site.
Avoid Car Crashes With Common Sense (4)
This prevention method starts even before going on the road, and don't make the mistake of neglecting it. Make sure that you have your car inspected from time to time.
How To Choose A Golf Bag Travel Cover (5)
Some Travel Covers will fit onto your Golf Buggy There are cases to be made for each option, so once you have decided that, then check out all the other options that are available to you; the customization, the color and so on.
How To Get Started Or Re-started In Your Mortgage Business (6)
Offer your private number (cell phone number) in case they have any questions. 4. Send a hand written "Thank You" note expressing your gratitude for the time they spent with you and the information they provided.
Shop Smart For Your Next Computer (7)
In fact, if you are willing to learn as you shop and take your time, you will end up making an informed choice. The second step is focused on the homework itself by providing distinctions among the basic hardware options that will help you to make some fundamental choices.
How To Keep Your Desk Clean (Without Using A Shovel) (8)
A better filing system? A bigger trash can? A shovel? Oh, I know you're a clean person, don't get me wrong - but your desk is most likely the landing place for every miscellaneous business-related piece of paper, envelope, sticky note, and notebook you have, not to mention your computer, phone, your keyboard and mouse, plus all the incidentals - pens, tape, paper clips, a glass of water, pictures, paper trays, etc.
Internet Home Business Ideas (9)
You can also gain a business education on the internet. You can do this by visiting successful business sites and observe their methods. Another way is to subscribe to a few of the businesses that provide free advertising.Advertising sites are in abundance on the internet,be it paid or free.
Skin Care Cream Basics (10)
The more moisture they have, the less susceptible they will be to the wear and tear of everyday use. Some individuals find that their hands demand moisture and hydration because of a skin condition they may have developed.
Permalink to The Underground Economy And Why It Is Bad For All Of Us