Dear Al
I work for a guy who handles a lot of cash in his small business. He does a lot of work under the table for people to avoid taxes. He wants to pay me the same way. I'm uncomfortable with this. Doesn't this affect my social security benefits and unemployment insurance?
Barry

Dear Barry
The quick answer is that any benefit based on earned income is affected by not reporting that income. Depending on how much money we're talking and how long it goes on, it may have a small impact on your benefits. The bigger question is a matter of ethics.

The underground economy is worldwide, healthy, and vibrant in both free and oppressed nations alike. All governments know and tolerate it to a degree. It's like owning a bar and realizing there will be spillage and tasting at your expense. Being in business can be a real challenge so trying to beat the system is a major temptation for many in small and large businesses alike. Perhaps if we had a simpler tax system, like a flat tax for example, it might reduce the cheating to a degree. Many well meaning men and women have attempted tax reform in the past, but most lacked either the support or the political will to see it through.

If you like your job tell your boss you prefer to be paid above the table. If he balks, seek employment elsewhere. People who don't pay their fair share are cheating all of us. It could also affect your ability to borrow money for things like a home or a car when you can't show enough income to qualify.

I commend your honesty. You're a rare individual in this anything-goes world we live in today. It's one of those traditional values that seem to confuse some people. Repeat a lie often enough it starts to feel like the truth. Cheat often enough and it doesn't seem so bad after awhile.
Al