Chicago Adult Entertainment: Missed opportunity: A year of ’stimulus"

It makes more sense for the federal government to have low sales taxes on many products to help pay for the military, Social Security, Medicare, Medicaid, infrastructure, energy development, energy transmission, education, and other things than to tax savings and investments. The sales taxes need to be low because if they are high consumption might significantly decrease and unemployment might increase. The sales taxes would help the federal government tax money being earned in the underground economy by many millions of people – citizens, legal immigrants, and illegal immigrants. The underground economy consists of people who earn money in legal ways who do not report all the income they make to the IRS and income earned in illegal ways – illegal drugs, prostitution, etc. I recommend people read Hiding in the Shadows: The Growth of the Underground Economy by Friedrich Schneider and Dominik Enste on the net. People do NOT pay federal income taxes on money they make in the underground economy. People do NOT pay Social Security taxes and Medicare taxes on money they make in the underground economy.

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