[ArkyBeagle]

That's not completely true. There are, at least in the US Sunbelt, large numbers of people who exist more or less off the books. It is only partially about tax avoidance. As the difference* between U3 and U6 unemployment has risen, this will only increase.

To the extent that funds from the above-board economy transfer to the informal economy, the taxes are simply paid by the last person in the chain who paid taxes.

*they're narrowing now, but it is anyone's guess as to whether the big jump from the 2008 time frame is permanent or not.