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Do higher taxes drive businesses underground?

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  • Do higher taxes drive businesses underground?

    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 - 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.
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