Is the IRS the Solution to Illegal Immigration?
31 Pages Posted: 17 Nov 2009
Date Written: November 17, 2008
Recent immigration debates leave two concerns. The first issue is how to get immigration reform to work, and the second is how to fund it.
This article proposes an answer to both concerns. Instead of focusing on the immigrants themselves, we focus on the U.S. businesses that are currently violating the law. By denying all deductions to businesses that hire illegal immigrants, the profitability of hiring undocumented workers for below minimum wage will be removed.
In turn, this will remove one of the key motivators to illegal immigration - jobs. And it can be done in a revenue positive manner, instead of costing U.S. taxpayers billions of dollars.
Keywords: tax, income tax, immigration, reform, illegal immigration
JEL Classification: H20, H24, H25, H26
Suggested Citation: Suggested Citation