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To reform immigration by updating our broken immigrant taxes to meet 21st century conditions and technology.

Many of our undocumented immigrants come to this country, fleeing unimaginable conditions, often risking their lives to work for fewer wage. The Senate bill S-744 basically says, “Welcome to the USA, line up and wait to pay taxes in 13 years, if you are lucky.”

There are several things wrong with the bill other than being inhumane and they center on immigrant taxes. The most obvious is the much publicized $4.2 Billion being gamed annually by undocumented immigrants filing taxes through the government’s ITIN system and claiming excessive exemptions.

The least obvious is that the IRS allows 25% of our immigrants (maids, gardeners, nannies etc, to estimate their own incomes for tax purposes. Not only does this mean that there is no way to effectively collect income taxes from our 2 million cash economy workers, but if they were allowed to file tax returns, for a relatively few dollars they can hook into our Social Security and Medicare systems costing the American taxpayers billions in unfunded benefits during their retirement years.

Every policy maker knows that a bad tax is worse than no tax. It is our recommendation to eliminate the Nanny tax for household employees where both employer and worker are supposed to pay around 7% each and replace it with a simple to pay a 5-10% tax on their employer only.

You are welcome to read and comment our new report, A Fiscal and Social Model for Immigration Reform where we illustrate in great detail how if this model is codified, we could help solve our immigration problem with the $103 Billion it generates and the 100,000 jobs it can create.

Let’s face it, immigrants don’t come to this country to sign up to Social Security and Medicare but that’s what citizenship offers—this plan offers them legal status with benefits including $30 Billion in the budget (page 9) to fund medical centers and other needs.

We can show them respect by providing some basic needs which will help them assimilate and their employer will ta

  • May 7 2014: Raj, Thanks for posing the question. The model that we designed is to legalize undocumented immigrants by having employers pay a small amount of money to fund immigration reform. With the $100 billion from this revenue we can employ 50,000 Americans to build and staff medical clinics, schools, community centers, prisons etc.

    We are at a time in history where with robots and technology we are losing more jobs than creating. What's the answer you say, who knows? The one thing that I do know is that we need to educate our children more agressively, maybe they will come up with better ideas than us, for sure, they will have more incentive.
  • May 7 2014: What do you want to do with our 30 million citizens who are unemployed or under employed? Secondly there are one Bullion people who wants to come to USA because they are now living with less than dollar a day? Any plan to bring them here?