The largest impediment to obtaining real reform today is our country’s flawed immigrant tax policies. The origin of this nation’s largest source of continuing tax fraud is the tax policies built into our immigrant program, costing American taxpayers billions annually. The third way model will eliminate this problem.
The Vision in our third way model reveals monetary solutions to help with many problems associated with illegal immigration.
We have an unauthorized immigrant population the size of some nations, with many having lived here for decades—and with families. Many of them would like to visit home but our border security forces them to stay here, and some start second families. Additionally, many immigrants don’t come here seeking citizenship and retirement benefits, as is verified by former Mexican president, Felipe Calderon.
Nearly half of our unauthorized immigrants work in the underground, or cash, economy and any attempt to have them pay income taxes has been futile; therefore, if mass-citizenship is encouraged, little will change. We will still have crowded ER rooms, underfunded schools, competition for some jobs, and law enforcement concerns.
The third way model for immigration reform answers many yet-unanswered questions that have plagued attempts at resolving immigration issues.
The following chart illustrates that retirement benefits beyond contributions for a cash economy worker earning $9,000 per year (no income taxes paid) can run between $217,494 and $278,082 each. Self-employment taxes are 15.3% of wages.