View Full Version : Do higher taxes drive businesses underground?

10-11-2007, 04:54 PM
Have you found that when higher taxes are instituted, more businesses go underground? What about when sales taxes are applied to lawn care?

Local businesses not happy with 6% extended sales tax (http://www.romeoobserver.com/story.asp?storyid=10582) - Carol Humphreys of Romeo Accountants said "My landscapers are upset, they have a hard time with collections now," she said. "A lot of them are expressing that it's another blow to a fragile economy."
On top of this, she said the tax may make a lot of businesses work "under the table," causing legitimate businesses who have to tax to compete against illegitimate businesses just to survive, creating a bad atmosphere.