Immigration Bill Provides Tax Amnesty For Illegal Immigrants
Paying Taxes is For Suckers
By Dan McLaughlin Posted in Immigration — Comments (27) / Email this page » / Leave a comment »
As I have explained at great length before, there are two types of amnesty for violations of the law: complete amnesty, meaning no penalties whatsoever, and partial amnesty, by which people are absolved from consequences for lawbreaking for some penalty less than the full force of the law. It's been obvious for some time that the current immigration bill would provide a partial amnesty for people currently in the U.S. illegally. For people who oppose any type of amnesty, that's reason enough to oppose the bill. For people like me, who are willing to support a 'legalization' process under the right circumstances, the question is the details. But one thing should be absolutely non-negotiable: anybody who wants to stay in the U.S. legally has to pay their taxes.
The bill currently under discussion appears to fail that test. The immigration bill would bestow a massive tax amnesty on illegal immigrants. The supporters of this bill think that you, as an American citizen, should pay taxes - but illegal immigrants can become legal residents without paying their own share. This is scandalous. The bill should be rejected for that reason alone, and its supporters should be made to explain why they didn't want illegal immigrants to pay the taxes they already owe.
Read On...
I'm working here off of National Review's PDF copy of the bill, as well as N.Z. Bear's annotated copy. If I read this bill correctly, the sections establishing the "Z visa" that gives lawful status to people currently illegally in the U.S. are Sections 601-02 and 609, at pp. 260-85 and 294-95 of the draft bill.
What do you have to show to get a Z visa?
Well, Section 601(e)(4) requires that the applicant be employed when making the application, and Section 601(m)(1)(B) requires continuation of fulltime employment. Section 601(i)(2)(A) permits documentation of presence and employment status by records of the IRS, the Social Security Administration "or any other Federal, State, or local government agency." Section 601(i)(2)(C) allows applicants who can't satisfy this to use alternate proof via any two of bank records, business records, employer records, labor union or day center records, remittance records, or affidavits by nonrelatives.
What do you have to pay to get the Z visa?
Section 601(e)(6) (the draft has no Section 601(e)(5)?) provides for payment of an application fee of up to $1,500 (Section 601(e)(6)(A)), a $1,000 penalty (Section 601(e)(6)(B)(i)), a "State impact assistance fee" of $500 (Section 601(e)(6)(C)), as well as $500 a head fees for derivative applicants (Section 601(e)(6)(B)(ii)).
What do you have to pay to go from a Z visa to lawful permanent residence?
Section 602(a)(1)(C)(v) requires payment of a $4,000 penalty at the time of an application for lawful permanent residence.
Section 602(a)(8) states that an applicant for lawful permanent residence must satisfy "any applicable Federal tax liability accrued during the period of Z status."
Tax Amnesty
Unless I am missing something or reading this wrong, this means that:
(A) People currently in the U.S. illegally can obtain Z visas without satisfying their liability for any taxes - federal, state, local, Social Security, FICA - they did not pay previously.
(B) Continuance of Z status does not depend on paying taxes.
(C) Lawful permanent residence can be obtained without satisfying liability for unpaid taxes prior to obtaining the Z visa.
(D) Lawful permanent residence can be obtained without satisfying liability for unpaid state or local taxes.
The Bush Administration apparently removed a provision requiring payment of back taxes that even Ted Kennedy had approved. Newt Gingrich has been pressing this as a reason to sink the bill. Robert Rector of the Heritage Foundation explains that the failure to collect taxes won't be mirrored when it comes time to pay benefits:
"They never contribute more than they take out and at retirement they become very costly," Rector said in Capitol Hill press conference on Monday with Sessions, Sen. Jim Bunning (R.-Ky.) and Rep. Bill Bilbray (R.-Calif.).
"Every person that gets the Z visa, and that would be about 12 million people, 9 million of which are adults - is immediately eligible for Social Security. They start to contribute to that system. They start to earn eligibility for Medicare. The White House has claimed they don't get welfare benefits. That is absolutely untrue. For the first 10 years or so they are in the country, the adults would not get welfare benefits, but the children would. They are going to be here for fifty years. For the first 10 years they don’t get means tested welfare, but for the next forty they are going to be eligible for every single type of means tested welfare."
Apparently the Bush Administration feels that collecting back taxes will be too hard to calculate:
White House spokesman Scott Stanzel, asked in a telephone interview yesterday to clarify Chertoff's remark, said it referred only to future taxes.
"It is important that the reformed immigration system is workable and cost efficient," Stanzel said. "Determining the past tax liability would have been very difficult and costly and extremely time consuming."
Stanzel stressed that immigrants would be required to pay a fine of up to $5,000 if they want to apply for a green card to become a legal resident, although that fine is not for failure to pay taxes.
Laura Capps, a spokeswoman for Kennedy, said a provision for requiring back taxes was in Kennedy's original bill and that Chertoff called for it to be removed. "Chertoff thought it would be too challenging to accurately determine the amount of an applicant's back taxes," she said.
Administration officials said many illegal immigrants do not get paychecks that can be audited, making it difficult to determine tax liability.
Of course, the bill is very flexible on how you go about proving that applicants have been, and continue to be, employed and resident in the U.S. for a certain period of time. This being a voluntary statutory solution rather than a compulsory court proceeding, there's no reason why a similar process and formula couldn't be adopted for computing an estimated tax liability. As I have noted before, requiring full payment of all back taxes reduces the incentive to exaggerate how long you have been here, since a longer term of residence means more tax liability. A similar amnesty program could be put in place to encourage the employers of illegals to report and pay their back withholding/payroll taxes using the same formulas.
We can have a fair debate about whether it's proper to let people who entered illegally stay here. But if the idea is to legalize people who are supposed to be hardworking, taxpaying Americans, there's no justification whatsoever for not making them pay their taxes like the rest of us.
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Immigration Bill Provides Tax Amnesty For Illegal Immigrants 27 Comments (0 topical, 27 editorial, 0 hidden) Post a comment »
I'm glad they left out the requirement to pay back taxes, because it makes the bill that much less likely to pass. At this point I'm not willing to even consider supporting efforts to normalize illegals until there's demonstrable progress (as opposed to mere effort) to securing the border and enforcing immigration laws- particularly and end to the current "catch and release" policy.
Besides, even if they did include a provision to require back taxes, does anyone in their right mind think that the current administration would enforce it? Hell, they'd probably end up sending the illegals a refund check in the form of the "earned income credit".
It also gives them access to the Legal Services Corporation (LSC) to act FOR FREE to them as their legal council during all this visa and/or and deportation process.
We will have tp pick up the tab for in all likelihood EVERY one of these suckers.
This is the first time this has been allowed and I believe the law has to be changed to do so, I believe the law states that the LSC IS NOT allowed to act in their behalf.
How many years would the court backlog add up to be? 20? 30? 40?
Real change requires real change. -Newt Gingrich
There is ZERO reasons why to support this bill. I am not even remotely close to supporting "guest worker" status, even if the Adminstration could enforce it. Nobody seems to be addressing the issue of cleaning up Mexico to allow its own to stay there. Secure the border, institue change (faster) in Mexico, and maybe we can go from there. Many weeds in our backyard that need to be eradicated before they become a problem here.
Another reason this immigration fiasco has -ZERO- chance of passing.
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The bottom 40% of wage earners don't pay any federal income taxes in the U.S. That includes the vast majority of these illegals. True, SOME of the illegals might have made enough money to pay taxes, but I think it would cost more to figure out which ones than could be collected. In fact, most would be eligible for earned income tax credits (MONEY BACK). A negative-sum game. See below.
You're right. We're suckers for paying taxes. Millions of income tax payers should refuse to pay taxes. Then demand amnesty because it would be toooo hard to find out who we are and make us follow the law. We want to come out of the shadows!
From Sen. Judd Gregg - NH (March 20, 2007)
So, basically, high income people are, today, paying 85% of the federal income tax.
At the same time, the bottom 40% of Americans who have income tax obligations
actually don't pay a lot in income tax; they actually get money back from the Earned-
Income Tax benefit, almost twice as much today as during the Clinton period. So we
have the highest income people, those top 20% of American people paying income taxes,
paying 85%, we have the lowest bottom 40% getting about twice as much back as they
did under the Clinton years.
"No compromise with the main purpose, no peace till victory, no pact with unrepentant wrong." - Winston Churchill
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Underlying most arguments against the free market is a lack of belief in freedom itself. - Milton Friedman
1. zuiko is right -- most would be getting refunds from the EITC, so "back taxes" would probably COST the government money.
2. They have fake social security numbers, which mean they HAVE been paying payroll/FICA taxes INTO the trust funds WITHOUT getting the corresponding credit that will entitle them to benefits when they retire. Illegals have been GREAT for Social Security solvency.
This does raise a good point, though. Amnesty in the cases you cite will extend to those who engaged in identity theft, document fraud, forgery, and other felonies if taxes were paid under false names and SSN numbers (unless there is some small print I have missed so far, not that the Senate brainiacs would know or even care). All of which goes to bolster Crank's original point about this being about much more than even illegal immigration.
as soon as they realize about 90% of these people would be due refunds thanks to EITC.
Maybe it's a good thing there is no provision for them to collect past refunds.
is ripping this law to shreds right now on C-SPAN2.
Romney or Fred.
Currently writing non-political stories over at first-cut-stories.blogspot.com
he's ripping Big Business Republicans who want the cheap labor.
SO twice in one day, I'm glad for the Democratic Senator from North Dakota who seems to have a better understanding of the bill than my two Republican Georgian Senators.
Romney or Fred.
Currently writing non-political stories over at first-cut-stories.blogspot.com
Now Kyl is defending the bill.
Romney or Fred.
Currently writing non-political stories over at first-cut-stories.blogspot.com
A year ago in his nationally televised "Immigration Reform" speech from the Oval Office, President Bush said:
I believe that illegal immigrants who have roots in our country and want to stay should have to pay a meaningful penalty for breaking the law … to pay their taxes … to learn English … and to work in a job for a number of years [emphasis added].
I consider taxes to be secondary - the important thing is that the border is secure and immigration flows made manageable before any kind of amnesty occurs.
Does anybody know how much they are estimating that it will cost to secure the border? If they give unrealistic numbers, you will know that they are not really serious. I am worried that they will consume so many tax dollars on a huge paper-shuffling bureaucracy, that funds to actually police the border will take less of a priority, and be rationed too slowly. We all know how the Air Force used to build the O Club and Swimming Pool before building the flightline for the aircraft.
It needs to be made abundantly clear to people who think that the enforcement and security provisions and penalties of this grand boondoggle will disappear as soon as it is passed. There will be an immediate need to "reform" this bill to remove anything inconveniencing the illegals/future Democrats.
Does anyone really expect that the same government that has failed to enforce immigration laws for decades will start now? Of course, not. The government can't be trusted. Bush won't enforce these laws and no Dem will either. They should stop pretending they will and we need to continue calling them out on it.
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Halls of Justice Painted Green, Money Talking.
Power Wolves Beset Your Door, Hear Them Stalking.
The B-1 visas are being expanded so that people in non-high tech jobs could be brought in. For instance, schoolteachers could come in on a B-1 visa. Huh? We can't educate enough school teachers?
That's crazy.
Romney or Fred.
Currently writing non-political stories over at first-cut-stories.blogspot.com
Good analysis.
But when you analyze further, Crank, wouldn't this also amount to amnesty for employers who evaded taxes, failed to file 1099's, and keep I-9's on record? And for forgery, identity theft, and document fraud, as the 2006 bill certainly did (to refresh, this resulted in Sen. McCain's notorious outburst that "it's their money," in reference to Social Security taxes paid under fraudulent names)? Like you, I am still wading through this bill. Whether specific provisions remain that amount to forgiveness for these crimes, as did the last Senate bill, I haven't determined yet.
As I said at the time last year, the amnesty for illegal entry was one of the lesser of that bill's fullblown amnesty problems, and even it would have required aliens to pay some back taxes. The fact the president felt compelled to strip even that lenient provision out of the bill speaks volumes about any intent he has to enforce the law.
The only crime that appears to be a bar to the Z visa is passport fraud (don't have the provision handy but the bill refers to 18 USC 1543-45).
"No compromise with the main purpose, no peace till victory, no pact with unrepentant wrong." - Winston Churchill
receive amnesty before border and employer security are in place, that is nowhere near as detrimental to the rule of law as forgiveness for these felonies along with the tax evasion you mentioned. Amnesty for identity theft is particularly reprehensible.
I had missed the bar for passport fraud, but that is the only crime to my knowledge that would prevent the issuance of a Z Visa.
He's shouting loudly about each of the provisions.
Romney or Fred.
Currently writing non-political stories over at first-cut-stories.blogspot.com
there is no reason for us to pay our taxes. Apply for a Z Visa instead.
haystack's 12th:
Conservatives (and Presidential Candidates especially) shall offer no aid and comfort to the opposition in times of legislative conflict (and ensuing political campaigns).