> 1. Cash businesses that don't report income for taxation, so get to make effectively 40-50% more income from their revenue. In this case, I am using the term

> 1. Cash businesses that don't report income for taxation, so get to make effectively 40-50% more income from their revenue. In this case, I am using the term "business" to refer any income-generating activity for which you are not employed by another person. Yes, this counts the dude selling loosies. Common out here in flyover country, too. Anyone without a shop sign dominated by a large corporate logo is likely to tell you they'd prefer cash, and may offer a cash discount. Cleaners, mechanics, plumbers, even daycares (this is how poor folks can afford daycare: your cousin's friend is staying home with their kid and will watch yours, too, for 1/4 what a licensed daycare would charge, if you pay cash) all of that sort of thing, tons of people doing a fair amount of off-the-books work. You might have to chat with them a little first, but it's usually something they're interested in. I wonder if there's anywhere in the US this isn't fairly common. I can see how someone might not be aware of it, depending on how they grew up, but I can't imagine there are many places it's rare. [EDIT] Incidentally, in addition to the tax-evasion and benefits-qualification purposes mentioned elsewhere, this tactic is also used to evade child support.