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Friday, May 25, 2007

Where Does The Taxes From Illegal's Go? Back To The Company

So, I'm listening to Rush today. He was talking about taxes from illegal's and where it goes. Everyone would assume that it goes to the government. Rush thought the same thing. Not so says a listener. Those illegal's are using fake social security numbers. When the company sends the payroll taxes out, usually quarterly, they include the S.S. numbers of those employees. If those S.S. numbers don't exist, it gets kicked back to the company. Not only are they paying the illegal's a lower wage, but they also take out taxes, which is returned back to the company. It's like an added bonus to hire illegal's.

I have always thought and still think one of the best ways to crack down on illegal immigration is to fine the companies. Except, I don't think it should be a flat fine. A $5000 fine is nothing to Wal-Mart, but could put a small business, out of business. I think it should be a percentage of gross sales for each company, using a previous years' tax return. That way it would affect all businesses equally.

If you make companies stop hiring them, it's one less reason for them to come here.