Probably only a few do if it's cash-based. There are waiters/waitresses in the bay area that earn min wage but at some of the nicer restaurants their tips are very good according to one waiter. Sure seems like a real hole in the system when you have some people earning $75k to $100k but only paying taxes on 14k. Additionally, they get BMR and other govt subsidies because their income is "only" 14k (when in fact, it's higher.)
I also know it's very, very common in the Valley for non-hightech immigrants to not get married even though they have a child, so the "unwed, unemployed single" mother can get free govt benefits, even though her "boyfriend" works full-time. In fact, this is so common that "boyfriend" doesn't carry the same meaning as what it would to you and me, instead it actually means husband, one that gives a different address (and different city) to the govt. I was surprised, because most that do this in the South Bay Area are ultra practising catholics which frowns upon this.
So yes, people do violate the system. Credit card use at restaurants minimizes this. As far as the other scenario, the govt should scrutinize those that claim to be unemployed, unwed mothers (though I don't know how the govt can crack down on those that pretend to be unmarried mothers in order to collect free benefits, because you would certainly not want to take the benefit away from the truly needy, and there's no way to distinguish between the two.) |
