Unreported cash income costs U.S. $2T a year

04/28/2013 | New Yorker (free content), The

A whopping $2 trillion in income earned by Americans in 2012 did not get reported to the Internal Revenue Service, says economist Edgar Feige. This income is largely under-the-table earnings of nannies, barbers, construction workers and others who are paid in cash. This off-the-books activity, or gray economy, explains in part why consumer consumption is higher than before the recession even though reported household income is not.

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New Yorker (free content), The

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