No Place to Hide - Dead Beat Dads and the Cash Underground

Aug. 2, 2010 - PRLog -- WHERE DO THE "DEAD BEAT DADS" GO TO HIDE

-The Underground Cash Society
-Primarily the world of Construction Services
-Workers are paid in cash, no insurance, no taxes, and no records

WHY DO THEY GO TO HIDE?

-Because it is all cash and there are no records, no way to track the individuals getting paid
-There are no income tax withholdings to track to state and federal registers
-There are no disability withholdings made to track to the disability registers
-There are no workers comp premiums paid for an employee to track them that way
-No health insurance to support their children or to track them through the healthcare system

All this leads to "Dead Beat Dads" given the opportunity to live an anonymous life without the responsibility of supporting the children they have brought into this world- AND FORCE OTHERS TO COVER THEIR SHARE.

Is the "Cash Underground" a real factor and issue? How Large is It?

-The current estimates vary from 35-50% of construction services are operating illegally on some form of Underground Cash basis. Just a quick little test, you can go to the California State License Board and look under licensed contractors who are still in business and look under Workers Comp Insurance more than just a few will list that they have NO EMPLOYEES. How do you run any construction business with no employees- If they cheat in one aspect of the law they will usually cheat in another, such as paying employees in cash.

- If that little test doesn't satisfy you, the Berkley Study published in 2007 "Fraud in Workers Compensation Payroll Reporting" states that in 2002 there was over $100 BILLION in underreported payroll in California. THIS DOESN'T EVEN INCLUDE THE NUMBERS ON NON-REPORTED PAYROLL.

WHO IS AFFECTED BY THE "CASH UNDERGROUND SOCIETY"?

-STATE BUDGETS = Huge lost state income tax revenue, both employee and employer

-FEDERAL BUDGETS = Huge lost federal income tax revenue, both employee and employer

-UNEMPLOYMENT INSURANCE FUND = No contributions being made from earnings

-WORKERS COMPENSATION FUND = Legitimate businesses paying more to make up for those cheating, resulting in higher prices for consumers

-EMPLOYEES = No unemployment or disability coverage

-CHILDREN = DEAD BEAT DADS ARE ABLE TO AVOID OBLIGATIONS

PLEASE HELP PUT AN END TO THIS OUTLET AND MAKE SURE YOU HIRE A FULLY LICENSED AND INSURED CONTRACTOR FOR ANY AND ALL WORK.

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