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The Boston Globe

Business

Mass. to study the underground economy

Effort to gauge effect on tax income, budget

Governor Deval Patrick’s administration is launching a first-of-its-kind study to define the scope and financial cost of Massachusetts’ underground economy, as investigators continue to find widespread violations of tax and labor laws, officials said Tuesday.

The study, to be conducted over the next year, will identify the extent of employment fraud by industry category, and attempt to tabulate the amount of money the state is losing each year in unpaid taxes.

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