The Third WayIntroduction

The third way is a bi-partisan immigration reform model designed to allow undocumented immigrants and the 20-30 million American employers who illegally hire them, to become legally and fiscally responsible.

Currently, most of the expenses related to our 11 million undocumented immigrants, including the 8.5 million who work here, unjustly fall on American taxpayers while their employers benefit from less expensive labor and fulfilling difficult job needs. Our immigrant taxes are dysfunctional and tax fraud is rampant, begging for revisions to deal with our massive illegal immigration issues.

This model is a modern update of the Immigration Act of 1882 that taxed non-citizens arriving by ship 50 cents each, to be paid to the ship’s owner. The funds were deposited into an “immigration fund” in the U.S. Treasury to defray expenses incurred in regulating immigration. The tax needed to be paid before boarding the ship. It was a simple levy, and the third way proposes a similar solution adapted to present-day requirements.

To illustrate the power of the third way, it was necessary to develop it as a turnkey model for reform based on restructuring our immigrant taxes and defining needs. It’s possible to improve our prevailing tax policies, eliminate billions in tax fraud annually, and generate over $167 billion in new revenue over a ten-year period. As can be seen in the Vision, this revenue can help mitigate dozens of existing issues associated with illegal immigration.

The billions generated by a small tax placed on immigrant workers and their employers (only a nickel for every dollar of wages)—rather than going to the ‘general fund’ or ’employee retirement’ accounts—would be allocated to states through the IRS, based on immigrant population, to help solve three major concerns: immigration, infrastructure, and jobs.

2015 survey conducted by Opinion Dynamics Corporation shows that 70 percent of the public supports this third way proposal of adjusting taxes to fund reform.

Because many of our undocumented immigrants come from countries known for corruption, great detail went into designing the ITIG model, with self-enforcement in mind. An unconventional out-of-the-box solution, this is a compassionate, flexible answer to immigration reform that is fair to immigrants and Americans alike.