The tax and regulatory causes of the underground economy
Economic Note
Working « under the table, » together with tax fraud and illicit trafficking in various items, has been a focus of debate since the start of the crisis that hit most developed countries. Repressive measures have been implemented or are being discussed at the national and international levels.
However, these measures fail to attack the real causes of the underground economy. If it were to decline or disappear without any change in regulations or taxes, this could, paradoxically, end up penalising the official economy. The only lasting solution is to liberate the legal market.