So according to this website Jon is paying 14.65% in taxes state and federal. If Jon contributes to a 401k, obviously less. Also he is forced to pay into social security, a good thing for most Americans, and his boss doubles his contributions. That's another 7.5% he's getting. While we're on the subject, benefits often account for about 30% of an employees salary. So he's now doing way better than if he was off the books (as many legal construction workers are) Oh but they're working construction? What happens when the statistically likely event of an injury happens? Jon's company is legally required to have workers comp insurance. He get's paid time off, and paid for his injuries. If juan is permanently disabled, his company may have to shut down as they can't afford his medical bills, but good luck with that legal battle. Going to take a while to get the pay out, and he may be too afraid of deportation to even try.

I can go further down this rabbit hole if you like. My grandad avoided paying taxes on large amounts of money his whole life. That money could've been invested and earned interest. Instead its now worth substantially less than if he paid the taxes and just put it in bonds. At 2% inflation relate money halves in spending power in a few short decades. Also he had to guard it himself. If you're money is sitting under a mattress, you risk someone breaking in and tying up your family while they ransack your house. Got to be good at keeping secrets. I can actually go further on the topic, but I think I made my point. This post isn't a complete version of events, and in most situations paying taxes is in your personal interest. Obviously if you made 20 dollars babysitting, these concerns don't apply to you.