FairTax reforms Immigration
May 20, 2010
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So I finished the FairTax book and have just finished reading a new book “What Sex is Republican” by Terri McCormick. That summary will come soon (been meaning to do it the past two or three weeks, sorry) but here’s one last little thought about the FairTax.
The Senate is right now talking about pushing immigration reform to the top of the agenda. Arizona just passed a really really tough immigration law. If we skip immigration reform and do tax reform instead, what would happen to immigration reform?
1. Illegal immigrates start paying taxes. The animosity aimed at illegal immigrants by tax paying citizens for not paying their fair share goes away. Illegal immigrants of all national origin will pay their fair share and a lot of the anger behind the problem goes away. Once there is less anger driving the problem, it’ll be easier to come up with fixes based on facts and reason rather than emotion.
2. The unfair tax benefit of hiring illegals goes away. A restaurant manager won’t get any benefit hiring an American worker of an illegal one. This will provide fewer incentives for illegal’s to sneak over here, and less incentive for Americans to be mad at them. Again, with fewer of them coming and fewer reasons to be angry, better solutions become politically feasible.
3. Immigrants who legalize themselves start getting the Prebate. This provides a huge tax benefit to make the illegal immigrants deport themselves and come back legally. The current tax code currently punishes immigrants for coming here legally. The FairTax rewards them for coming here legally.
The cumulative affect of these three things will be that about half the perceived problems with illegal immigrants will be greatly reduced. We will still complain about them not speaking our language fast enough or waving the Mexican flag when they should be waving ours. But if they can pay more than their taxes without any tax benefit to hiring them over us, that’s enough of an improvement that, politically speaking, compromises and negotiations become possible and a good comprehensive solution can be developed that both secures our borders and these people like the hard working human beings they are.