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Do illegal immigrants pay taxes? How about social security? Some might be surprised to find out that somewhere between 50% and 75% of unauthorized immigrants pay local, state and federal taxes, according to the Congressional Budget Office. But how do undocumented workers find ways to pay legal payroll taxes? Straight Arrow News contributor Ben Weingarten argues that a large swath of illegal immigrants are stealing social security numbers, and explores “why and how illegal aliens are working on the books.”
Well, ironically, part of this dates back to landmark immigration legislation signed by President Reagan originally designed to stem the tide of migrants to America, and make it illegal for them to obtain employment.
The 1986 Immigration Reform and Control Act instead had the effect of driving illegal aliens seeking work–a primary reason why they come to America–to engage in fraud on their I-9s, by using Social Security Numbers that weren’t their own.
They obtain those numbers in many ways: Some steal, others “borrow” from friends or family, still others buy them from dealers or on the dark web, and finally, many just make them up out of thin air.
Why work on the books fraudulently? Well, the Social Security Administration has previously said that 75% of illegal aliens are using fake or stolen numbers, and there are several good reasons for it: First, they gain access to broader employment opportunities. Second, there’s a hugely powerful incentive to paying taxes. Given their generally low income levels, illegal aliens can receive reimbursements through deductions and exemptions, and rebates via credits–leaving many with tax bills of zero or even as net recipients of government money–that is, our money.
Their supporters say many pay taxes with fraudulent IDs in the hope that in a future amnesty, this will weigh in their favor by showing good behavior.
Now back to the ESF. The mismatched names there would enable authorities to pursue many of the fraudsters. But the IRS and other agencies who could enforce the law haven’t, and regulations have prevented meaningful information-sharing between and among them.
So to reiterate, illegal aliens engage in rampant fraud to work in America. Authorities could pursue the fraudsters. But they’re sitting on their hands. How could this all be?
Well, this identity fraud is a boon to the U.S. government–or at least some of its most cherished programs.
