THE FAIRTAX AND UNDOCUMENTED WORKERS
Paul Livingston, a board member of Florida FAIRtax Educational Association, starts his discussions about the FAIRtax with a statement similar to this, “Tell me any problem that the country is facing and I will show you how passing the FAIRtax will help solve the problem.”
A bold statement? Yes, but it certainly is true when you consider the impact of passing the FAIRtax on one of the most divisive problems that we now have and one that is prolonging the current government shutdown—undocumented/illegal immigrants.
WHAT IS AN UNDOCUMENTED WORKER/ILLEGAL IMMIGRANT?
An illegal immigrant is not just a person who sneaks over the U.S. border. This designation applies to any person who is unlawfully present within U.S. borders. This can happen in a number of ways, including:
- Entering without a visa or valid entry document
- Overstaying valid visa
- Re-entering the country illegally after being removed from the U.S.
- Violating travel provisions while in the U.S. for a temporary visit (for instance, leaving the U.S. for longer than is allowed, then returning)
- Gaining entry into the U.S. using fake or fraudulent immigration documents
- Impersonating a U.S. citizen for residential and work purposes (Using stolen Social Security Numbers for example)
Illegal immigrants can be:
- Deported from the U.S.
- Subject to criminal consequences (especially for fraudulent immigration applications or evading immigration authorities)
- Not allowed re-entry into the U.S. anywhere from 3-10 years after deportation or even permanently
It has long been believed that if you remove the opportunities for employment of undocumented workers, you cause many of them to leave the country and return to their country of origin or another country in which they can work.
Employers are legally required to only hire employees with valid Social Security numbers (SSN’s) and who are in the country legally. They are required to have the employee complete the I-9 form to verify their identity and demonstrate that they are legal to work in the U.S.
More and more employers are using the E-Verify system to verify SSN’s. This system matches a number of sources and is becoming more and more accurate in spotting either false or stolen SSN’s.
Under previous administrations, the use of a false Social Security number was a crime by the employee and not verifying the Social Security number was a crime by the employer but prosecution by the Immigration and Customs Enforcement (ICE) was not aggressively undertaken.
However, this is changing. President Trump issued an Executive Order entitled "Enhancing Public Safety in The Interior of the United States". This order directs the Department of Homeland Security (DHS) to reorganize and re-prioritize its enforcement objectives. Section 5d, in particular, expands the contours of targeted aliens to include those who "have engaged in fraud or willful misrepresentation in connection with any official matter or application before a governmental agency."
Since obtaining a false Social Security number is identity theft, a crime in every state and a federal crime, undocumented workers who are caught can be not only deported but also banned from obtaining any legitimate immigration status in the future.
While this punishment may not concern undocumented workers who sneak into the U.S. to earn money for a while and return to their native country, it can have a serious impact on people who are planning to stay in the U.S. permanently. Now DHS will be actively seeking to locate and deport many of these people who have used a false Social Security number to obtain a driver’s license and other documents. They will be deported because they are criminals who have broken U.S. laws and likely will be banned from returning to the U.S.
EMPLOYER PENALTIES
Hiring illegal immigrants can lead to civil and criminal penalties such as:
- Criminal penalties of up to ten years in prison for serious violators
- Loss of business license.
- First offenders can be fined $250-$2,000 per illegal employee.
- For a second offense, the fine is $2,000-$5,000 per illegal employee.
- Three or more offenses can cost an employer $3,000-$10,000 per illegal employee. A pattern of knowingly employing illegal immigrants can mean extra fines and up to six months in jail for an employer.A company employing undocumented workers normally only does this if it can pay these workers less than legally documented workers. A suit filed by the legally documented workers against the Zirkle Fruit Company was settled for $1.3 million because Zirkle knowingly hired undocumented workers, driving down their wages.
The continued enforcement will result in more and more illegal immigrants being paid in cash and neither they nor their employers will contribute anything in income or Social Security taxes.
HOW THE FAIRTAX HELPS REDUCE THE ILLEGAL IMMIGRANT PROBLEM
To support Paul’s statement that almost all of the problems facing the U.S. can be helped by passage of the FAIRtax, let’s look at the impact of the FAIRtax on documented workers with valid SSN’s and undocumented workers with invalid or no SSN’s.
Under the FAIRtax, all U.S. residents with a valid Social Security number (SSN) will be entitled to the prebate or tax rebate that allows a family of four to make up to $2,818 per month of purchases of new goods and of services without paying any FAIRtax.
A single adult with a valid SSN can make up to $1,040 of purchases each month without paying any FAIRtax.
It is easy to compare the economic effect of the FAIRtax on legally documented and undocumented workers.
| Family Composition |
Monthly Spending on New Goods or Services | Monthly FAIRtax Paid After Prebate (Must have valid SSN) |
Monthly After-Tax Spendable Amount |
| Legal Worker | |||
| Single | $1500 | $75 | $1425 |
| 2 adults/ 2 children |
$2500 | $0 | $2500 |
| Illegal Worker | |||
| Single | $1500 | $330 | $1170 |
|
2 adults/
2 children
|
$2500 | $650 | $1950 |
CONCLUSION
The existing federal income/payroll tax system will make the legally documented worker earning the above amounts pay through payroll tax deduction and income tax withholding. The undocumented worker who is being paid in cash, on the other hand, will pay only state sales taxes on their spending—nothing to the federal government or to the state income tax. Despite the fact that, the undocumented workers will be receiving education for their children and free medical care paid for by the taxes of legal residents.
This is not intended as an attack on illegal immigrants who come to this country for the opportunity for a better life. Were we in their place, many of us would do whatever we could to improve the welfare of our family and this would likely include sneaking into a country.
The FAIRtax creates an environment where undocumented workers would be paying toward the costs of the government services they receive. In order for them to have the same amount of spendable income as prior to the FAIRtax, employers who hire illegal residents will have to raise their pay to compensate for the tax. This will in turn make it less attractive for employers to hire illegal immigrants. The combination of stricter enforcement of the current laws against employing undocumented workers and the payment of the FAIRtax on all their consumption of new goods and services will also reduce the economic benefits of being in the U.S. illegally.
Will the FAIRtax solve the illegal immigration problem? No, but as Paul says, the FAIRtax will help. Combined with all of the economic benefits of the FAIRtax, isn’t it a “no-brainer” to pass it? It is a “no-brainer” only to people outside of the Swamp whose careers/jobs don’t depend on the existence of the income/payroll tax system.
President Trump, “Embrace the FAIRtax and real tax reform! What have you got to lose?”
It is time to PASS THE FAIRTAX!
The truth is the truth. Remember, if we don't continue to tell the truth and demand a change, then this quote from George Orwell's 1984 may foretell our children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
WHAT CAN EACH OF US DO
- I am sure that Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
- After they assure you that their boss is not in favor of anyone breaking the law, ask if they are aware of the Cebula study showing $9 trillion of evaded income/payroll taxes over the next ten years.
- Since most will say they don’t believe their boss has seen the study, either drop off a copy or get an email address and send a copy to them for their boss.
- Say you are going to call back in a week and ask what the Representative or Senator is going to do to stop this evasion.
- In a week, call back and ask specifically what the Representative or Senator is going to do to enforce the law.
- They probably will say their boss believes that simplifying the income tax will handle the problem.
- Explain that when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax. So it is unlikely that they are going to pay 30% or 40% when they were paying 0% because they have already decided it is okay to cheat.
- Say that the only way to reduce evasion is to increase by tens or hundreds of thousands the number of comprehensive IRS audits done each year.
- Point out that Evaders do not self-identify by putting an “E” on their income tax return.
- 80% of the people likely to be audited are trying to comply, but they will be forced to endure these IRS audits as well.
- Ask if the Member is in favor of this?
- If they say no, then ask again how the Member proposes to stop people breaking the income tax laws.
- Then explain that the way to handle evasion without unleashing the IRS audits is the FAIRtax.
If you can see your Member or attend a town hall and ask these questions, you can be even more effective.
FAIRTAX POWER RADIO
#143 Democrats Make the Case for the FAIRtax
The FAIRtax Guys let Progressive Democrats explain why other Democrats should endorse the FAIRtax. And the reasons they give just happen to appeal to all Americans regardless of party affiliation.
One issue is that the FAIRtax truly protects for the poor from excessive taxation unlike the current system which uses the Payroll tax, the most regressive tax we have.
Mixed in are some great live questions from the viewers which allow The FAIRtax Guys to further explain the benefits of the FAIRtax.
This is Part 2 of a two-part series on why the FAIRtax should appeal to people of all political stripes. Help us end the tax madness by sharing this episode with everyone.
If you believe the FAIRtax is good for America, let others know by turning them onto FAIRtax Power Radio - the ONLY weekly FAIRtax digital TV show in the country! Watch every Wednesday at 11:30 AM (ET). We are streaming to Facebook LIVE (www.facebook.com/fairtax). If you’re not a fan of Facebook, you can watch the show on www.xcluded.tv at the same broadcast time - or any time.
FTPR podcasts for each show are posted on Spreaker (http://bit.ly/2oesbk7), iTunes & iHeart Radio every Friday morning. A free FAIRtax Power Radio app is available for iOS and Android. Since it’s a podcast, you can download it and play it whenever it’s convenient for you.
The FTPR weekly episodes are shared to a number of Facebook pages:
- FAIRtax Official (https://www.facebook.com/FairTax/)
- The FAIRtax Guys (https://www.facebook.com/thefairtaxguys/)
- Democrats for FAIRtax (https://www.facebook.com/DemocratsForFairTax/)
- and many others
www.xcluded.tv is a subscription based site which costs $30 per year and features a number of other shows along with FTPR with no commercial interruption.
Please help us educate as many Americans about the FAIRtax as possible. Be sure to tell everyone you know about this great new format for FAIRtax Power Radio. Whether you watch the weekly video or listen to the weekly podcast, this is a great way for more Americans to learn about the best tax reform plan in Congress at this time.
Tune into our video broadcast each Wednesday. Or, if you prefer, you can listen to the podcast of the show later. You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free. Listen on Spreaker.com (http://bit.ly/2oesbk7), iTunes (http://apple.co/1Te8VdF) or iHeart Radio (http://bit.ly/2eqEG7y) on your computer or smartphone. The easiest way to listen to FTPR on your smartphone is by downloading the free FTPR app. Just search for “FAIRtax Power Radio” in your app store, download the app and start listening.
Remember, FTPR digital TV every Wednesday at 11:30 AM (ET) followed by the podcast on Friday morning. Please listen and tell everyone you know about the FAIRtax Power Radio. The FAIRtax: Once You Understand It, You’ll Demand It!
DOES SOMEONE NEED A SIMPLE INTRO TO THE FAIRTAX?
HERE IT IS - AMERICA’S BIG SOLUTION
America’s Big Solution provides a starting point in your study of the FAIRtax and is meant for people of any age. And you can download it to your tablet or smartphone right now. It’s also available in print form. See below.
Do you know someone who would like an introduction to the FAIRtax and would prefer to read about it in a booklet rather than search online for Tweets, Posts and Shares? If so, America’s Big Solution is their best choice.
America’s Big Solution is an introduction to the FAIRtax written by Terry Tibbetts, author of A Spartan Game: The Life and Loss of Don Holleder, with help from Ron Maiellaro, President of the Florida FAIRtax Educational Association.
You can buy an electronic version of ABS as follows: AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle (http://amzn.to/1WIRHry), the Barnes & Noble Nook (http://bit.ly/1XeG8bH) and Apple iOS (http://apple.co/1tnqK0P).
You can purchase a print copy at the same Amazon link above for $9.25. Regardless of whether you choose the electronic format or the print format, you’ll find AMERICA’S BIG SOLUTION will give someone the boost they need to begin their study of the FAIRtax and the suggested resources to learn more. Buy AMERICA’S BIG SOLUTION now!
LINKS TO MORE INFORMATION
These links will help you promote and support the FAIRtax, make yourself familiar with the links below. We always do our best to keep our AFFT community up to date, and you can stay ahead of the curve using these convenient sites.
- The website of Americans for Fair Taxation (www.fairtax.org)
- Read the Summary of the Evasion Study
- Welcome to the Online FAIRtax Community (member.fairtax.org)
- The website at which you can help make it happen (bigsolution.org)
- The Facebook page for Americans for Fair Taxation
- The Facebook page for The FAIRtax Guys
- The Twitter page for Americans for Fair Taxation
- PopVox - Connecting people and lawmakers for more effective participation and better governing
- YouTube channel for AFFT
- YouTube channel for The FAIRtax Guys
- The Official FAIRtax Logo Store (www.fairtaxlogostore.org)
- www.xcluded.tv - A new platform for FAIRtax Power Radio Video and other shows.
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