Sunday, August 28, 2011

Illegal Immigrants In The U.S. Should Be Exempt From Paying Taxes

State Representative Jeffrey Mursau

Illegals don't qualify for state public assistance or federal funds, then why should they continue to pay taxes?

By H. Nelson Goodson
August 28, 2011

Madison - Congress and states from across the United States have drawn up bills to bar illegal immigrants from receiving any type of public aid. Today, these public elected officials in the city, county, state and federal level either Republicans or Democrats have failed to introduce a bill that would exempt illegal immigrants from paying taxes. If illegal immigrants can't qualify for any type of public services, which most have already paid for, then why should they continue to pay taxes.
Taxes were meant to raise public revenue for local, state and the federal government to help provide certain public services and other needs that effect the public (taxpayers).
The issue of illegal immigrants not paying taxes in the local, state and federal level is shunned by public elected officials who would rather try to stall anti-immigrant bills in committees then focusing on a bill to exempt illegal immigrants from paying taxes. The Internal Revenue Service (IRS), Social Security Department, Congressional Budget Office and state revenue departments continue to exclude accurate tax revenue generated by illegal immigrants since the Amnesty of 1986 was passed. Most illegal immigrants don't claim a tax return allowing the federal government to keep hundreds of billions of tax dollars generated by illegal immigrants. It's for certain to admit, that unclaimed tax dollars from illegal immigrants has kept the U.S. afloat economically through the years avoiding a depression and global economic disaster.
The only official yearly report by the IRS is that in 2005, the IRS had $1.3 billion of unclaimed tax returns from more than one million people, averaging refund of about $581.00. In 2006, the IRS reported it had more than $1.3 billion of unclaimed tax returns for nearly 1.4 million people averaging a refund of $604.00. In 2007, the IRS reported it had $1.1 billion of unclaimed tax returns for 1.1 million people averaging $640.00. The tax reports by the IRS average about more than $1 billion of unclaim tax retrurns. But, the IRS referred to the people that weren't claiming tax returns as low income averaging between 33,000 to 39,000 of income a year.
What happened to the IRS report concerning the other 13 million illegal immigrants that do pay federal taxes, but don't claim tax returns? Well according to the IRS, people had a three year window to claim those taxes and if they don't it becomes the property of the U.S. Treasury.
In April Allgov dot com reported, certain corporate companies make billions of dollars in profits and pay no taxes compared to illegal immigrants that generate billions of tax dollars for state governments.
The Institute for Taxation and Economic Policy concluded that unauthorized immigrants paid $11.2 billion in taxes last year. This total included $1.2 billion in personal income taxes, $1.6 billion in property taxes, and $8.4 billion in sales taxes.  
States that gained the most revenue from illegal immigrants paying taxes were California ($2.7 billion), Texas ($1.6 billion), Florida ($807 million), New York ($662 million), and Illinois ($499 million). They were followed by Georgia ($456 million) New Jersey ($446 million) and Arizona ($433 million), according to Allgov dot com website.
It's about time public officials whether elected or not, should face this issue, because to tax someone and to prevent them from getting public aid generated from tax dollars, if anything is blatant discrimination, unconstitutional and should be addressed.
The State of Wisconsin is no exception, on August 18 Wisconsin State Representative Jeffrey Mursau (R-Crivitz) introduced Assembly Bill 222 (AB 222) requiring only U.S. Citizens or legal residents to apply for public aid. Mursau's bill is intended to keep illegal immigrants from applying for any type of public assistance. Wisconsin lacks a verify process to check U.S. Citizenship when someone applys for any type of public assistance, according Mursau. 
The bill would require anyone applying for public aid with the state Department of Health Services or Department of Children and Families to prove of citizenship or legal status in the country. Federal and state funded public programs affected by AB 222 would include, W-2, medical assistance, food stamps, BadgerCare Plus, SeniorCare, Wisconsin Shares child care subsidy, state paternity cases, including establishing paternity, enforcement of child support obligation and supplemental Social Security income, according to the Legislative Reference Bureau analysis, the Capital Times reported.
But children born in the U.S. to either one or both parents illegally in the country can actually qualify for public aid. Families or people illegally in country don't apply for any type of public aid. Illegal immigrants are already kept from applying when filling out documents for aid or food stamps, unless their children are U.S. Citizens and in need of assistance. Illegal immigrants can also receive emergency medical care, according to federal law.
Mursau's bill might even prevent illegal immigrants from receiving medical emergency care in the state and could slow aid to the needy.
Another Wisconsin bill is Assembly Bill 173 (AB 173) introduced by Representative Don Pridemore (R-Hartford). AB 173, is an Arizona copycat bill and includes a provision to prevent illegal immigrants from receiving public services or aid.
Even recently, six Wisconsin Democrats introduced state Senate Bill 137 (SB 137), which prevents employment for illegals by businesses seeking state contracts and loans. The bill also makes employers ineligible for tax exemptions for hiring illegals in Wisconsin.
SB 137 is sponsored by five State Senate Democrats, Dave Hansen (Author), Robert Wirch, Jon Erpenbach, Jim Holperin and Tim Carpenter and one State Representative Tony Staskunas (D) (Co-author).
In July, the Internal Revenue Service (IRS) agreed with an audit report from the Treasury Inspector General for Tax Administration (TIGTA) to try and eliminate a tax loophole for illegal workers using Individual Taxpayer Identification Numbers (ITIN) to file tax returns. The tax loophole allows them to claim dependents without verification on Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) claims, thus defrauding the government. Federal laws prohibit undocumented immigrants from collecting any public benefits from the feds.
Last year, 2.3 million undocumented workers collected $4.2 billion in tax credit refunds using the ACTC, compared to $924 million in 2005. The refundable tax credits including the CTC was meant for working families, but a loophole in U.S. tax laws and the expansion of tax credits in stimulus bills and other measures had increased filings for the ACTC.
The TIGTA report says, the tax loophole provides an incentive for illegal immigrants to enter the U.S., work, reside and collect tax refunds, even if they haven't paid income taxes or taxes are not witheld while working. ACTC filers can get up to $1,000 refund per child, according to the audit report. 
The TIGTA audit recommended for the IRS and the Department of Treasury to determine ACTC eligibility for ITIN filiers and if ACTC refunds should continue to be paid to undocumented workers in the future. The report also recommended for the IRS to verify dependents that were claimed in ACTC filings and to notify taxpayers when their Social Security Numbers (SSN) have been compromised. Even employees in the Account Management Taxpayer Assurance Program have failed to notify taxpayers when their SSNs and names have been compromised, the TIGTA audit reported.
The IRS is looking into options about notifying taxpayers when SSNs have been compromised. The IRS did not agreed to require additional documentation to support CTC and ACTC claims on ITIN returns, according to the report.

TIGTA 2011 audit report (PDF) at link: http://1.usa.gov/r6Zmgz

Statistics:

Wisconsin Hispanic population in the state grew by 74% 336,056, an increase of 143,135 from 2000. Hispanics now account for 5.9 percent of Wisconsin's total population and more than 3,000 Hispanic owned businesses contribute more than $800 million in annual sales.
A City of Milwaukee economic study reported that the South side households in the predominately Latino community located inside Postal Zip Code 53204 in Milwaukee spend more than $91 million annually in retail goods, according to the 2006 Department of City Development statistics. In one day, they spent approximately $249,315.06. The biggest tax-generating base for the city comes solely from the South side.
In Milwaukee, over 850 Hispanic owned businesses generate more than $225 million in annual sales. It is abundantly clear that the immigration of Hispanics and undocumented immigrants to Southeastern Wisconsin is tied to a large degree to the available resources that Hispanics have in the area.

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