Joe has a full-time construction job and also does odd jobs for people on the weekends. you have purchased the materials needed to construct a fence at your house and you pay joe $500 to build the fence. does the payment to joe count toward the value of gdp?

Question

Business

Kade Riggs

24 September, 05:58

Joe has a full-time construction job and also does odd jobs for people on the weekends. you have purchased the materials needed to construct a fence at your house and you pay joe $500 to build the fence. does the payment to joe count toward the value of gdp?

+4

Answers (1)

Know the Answer?

Kaleb · Answer 1

The answer is: No, if this income is not likely to be reported to the government

If the income from the purchase is reported in taxes, the government could count it as a part of total consumption that occurs anually.

But since the construction for the fence is considered as 'odd jobs', the payment would most likely being made 'under the table' (without any proof of records). This make the payment become ineligible for tax payment.