New IDEA (HR-3720) states explicitly that wages and benefits paid to illegals are not tax deductible. It gives employers “safe harbor” if they use the Internet-based E-Verify program to verify legal status during their hiring process, but it does not require them to do so. During a normal audit, the IRS would run employees’ I-9 identification information through the E-Verify program; whenever a worker could not be verified as a lawful employee, the IRS would not allow the deduction of that employee’s wages and benefits as a business expense. This would be, in effect, a tax or penalty on the employment of illegal immigrants. For example, a $10-per-hour illegal employee would cost $16 an hour without the normal tax deductions. With a six-year accumulated statute of limitations, employers will calculate the inevitability of an eventual audit and use E-Verify to clean up their work forces, whether abruptly or incrementally.
New IDEA also requires the IRS to set up a cooperative team with the Department of Homeland Security and the Social Security Administration. Illegal employees often pay into Social Security under false Social Security numbers, creating thousands of “no match” letters from the Social Security Administration. This massive evidence of illegal employment is often ignored. Homeland Security needs this “no match” information to enforce the law, and the executive branch requires a clear directive from Congress.
Monday, January 02, 2012
A new 'IDEA' on illegal immigration
I'm intrigued by this approach to illegal immigration from Rep. Steve King from Iowa’s 5th congressional district. Wondering what you think of it, as detailed here:
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2 comments:
Good idea! Like most things in life, when you start hitting the pocket book, people's thinking changes.
I would also throw in the liability the employer would have if their illegal employee uses medical services(Workers Comp) for a work injury. To be specific, not be able to buy Worker's comp after the fact, but actually be financially liable for the entire medical bill.
I read it and I was reminded of the infamous Law and Order speech given by Adolf Hitler and often quoted by hippies when speaking to the authoritarian government back in the 1960s.
I note that Steve King fails to define just what it is he seeks to accomplish. All he does is write a few grandiose paragraphs that misrepresent U.S. history before continuing and describing his new idea as the panacea for illegal immigration. The short of this is that King's idea won't work. It will be another failure of government law, which is something we already have too much of.
If the U.S. Government actually wanted to deport illegal immigrants, it would and they would be - deported, that is. The truth is it doesn't and they aren't.
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