Recent estimates indicate that close to 14 percent of the U.S. gross domestic product is “underground” or unreported to the internal revenue service. Further, it appears that the amount of...

Recent estimates indicate that close to 14 percent of the U.S. gross domestic product is “underground” or unreported to the internal revenue service. Further, it appears that the amount of unreported income in the U.S. is much higher than we are aware of. Thousands of unrecorded cash business transactions are conducted in the U.S. daily, with all levels of taxation being avoided. Similarly, the growth of the U.S. service economy has created a situation where literally millions of child-care, lawn care, domestic help, and other workers toil completely off the books. Unrecorded barter transactions (teeth cleaning for computer repair) are also not uncommon. The $2 trillion annual U.S. underground economy involves a wide range of significant governance, social responsibility, and ethical issues and presents a situation where hard-working tax-paying citizens are supporting government services for working citizens who pay no or little taxes.Write a 1 paragraph summary (in your own words) of the problem outlined above and then respond to the following question in a second paragraph. Total response should be 1/2 to 1 page in length.With the knowledge of the underground economy from the reading above, what is one idea/method you could see as a way to mitigate or solve some of the “unrecorded transactions” that are not being reported? Think about technology and incentives as a starting point and come up with your best shot at this question.