What happens in business when people don't pay the proper taxes? In 2010, Hawaii Business (www.hawaiibusiness.com) wrote an article saying that cash transactions amounted to over (1) billion dollars in tax revenue loss. Wow...that's a lot of tax revenue to say the least!
Hawaii Business article further points out that the State of Hawaii had a $1.2 billion dollar deficit in 2012. Kind of even ...isn't it?
Every time a cash transaction helps someone personally, it hurts a whole lot of people when it comes to lost taxes. As computers become more and more part of our lives, it is reasonable to expect that the underground economy will begin to be less significant in the game of evading taxes.
Play it straight, play it fair...when in doubt check it out. Do your part and we will all be better off.