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 on the scope and fiscal impact of the state’s underground economy, as investigators continue to uncover widespread violations of the state’s labor and tax laws. 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.