Friday 1 October 2010

THE BLACK ECONOMY

What is this ?

It is people working for cash which they do not declare as income ! The person who pays does not declare he has employed anyone !

The consequences are that illegal imigrants survive and scroungers living on National Health handouts remain undetected !!! So called employers avoid paying Social Security charges but taxpayers and the State ultimately suffer all the consequences.

David Cameron and Nick Clegg must address this problem and would do well to appoint a specialist to look at the system which operates in France.

The system encourages people who need short term or long term family help from workers like cleaners, gardners, home helps and teachers, etc, to declare payments made to them. The costs which include social security and pension contributions are deductable from the personal income tax payable by the employer. The worker profits from the pension contributions and national insurance. The system is appreciated by both employer and employee.

The existence of this system does not absolve the State from verifying that companies and businesses do not employ "black labour" !!! Restaurants and building sites are well known black labour employers, but they are not the only ones.

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