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:

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.