3) The underground economy is estimated at $1 trillion dollars or more. Most of it is done by US citizens. I know, I busted, or should say, audited a few thousand. This includes babysitting, extra income on fixing the car outside of your employment as a mechanic, black market illicit drugs and sex trade, and so forth while not reporting the income. But all groups, whether rich or poor, do tax evasion for one reason or another. It is not as one sided as you think.