Thread: Financial Disincentive Needed

Financial Disincentive Needed to Counterbalance Illegal Immigration


While enforcing the existing laws of this nation may make a dent in the flow of illegal immigrants, I am certain that even if all the laws were rigorously enforced it would stop at most half of the illegal immigration. The problem is, simply put, there is too much financial incentive for people to come here illegally.

I believe that to counter the financial incentive that is drawing people to this country illegally we must provide a financial disincentive. That disincentive could come in the form of a sales tax high enough to raise $10,000 per year from every householder at the poverty level but with prebate of $10,000 to every householder who can prove they are in this country legally. I am proposing the FairTax...a sales tax...but with a higher percentage tax rate than is normally suggested. It would be revenue neutral at the poverty level, just as the normally proposed FairTax. In this case however only those whom are in the country legally would receive the prebate. This amounts to a $10,000 fine each year on the illegal householder.

The Health and Human Services 2008-2009 definition for poverty for a family of four in the 48 contiguous states is $22,050.00 which would require a sales tax of 45.3% be applied in order to levy a $10,000,00 tax on said household (100% x $10,000/$22,050 = 45.3%). That is an inclusive tax rate. If you feel a lower financial disincentive would work do the math with the above statistics. If $5,000 seemed appropriate the tax rate would be 22.6%. The question as to where to set the rate would depend on how much of a sting would be needed to counterbalance the financial incentive to come here. I suspect a rate between the two examples given above would be effective.

Can you imagine the result. If there are 20 million people in the country illegally and four of them constitutes a household, then there are five-million households and the total fine levied on those here illegally would be fifty-billion dollars ($50,000,000,000) each year. What could we do with fifty-billion dollars? Maybe we could hire more Border Patrol agents, purchase more equipment for the same, pay down our national debt, shore up our social security “fund.â€

Welcome to ALIPAC, Catmother!
And as you have pointed out our tax dollars could be spent well elsewhere, including solving the problem of our aid for illegals that drop the anchor babies. while American citizens end up losing their homes because of no jobs and are now living under bridges, while the illegals have no intent of returning home but will wait for amnesty
We are being monetarily and socially raped in this country over the past 30 years.
And consider this as a snark: what is a few billion here or there when the rest of the world still buys our Treasury obligations? After all, we have to support the illegals with their anchor babies, while government is doing its best to try to cut off funding for those on Medicare, those who have contributed so much to this country's wealth.
I do have to disagree about raising taxes as I feel that would totally destroy the small business shop owners. If I run to the gift shop and have to pay an horrendous tax on my purchase, I may think twice. Meanwhile, I can find something similar at Wally-World, which has a shelf price much lower than the gift shop, so tax is less.
I seriously believe that the best thing we can do at the moment is to impose taxes on remittances out of this country, because the US has been the second largest contributor to the Mexican GDP, after their oil exports to the US and the rest of the world.

Vortex: "I do have to disagree about raising taxes as I feel that would totally destroy the small business shop owners."

I think you miss an important point. There would be a prebate of $10,000 to every householder here legally, that would offset the very high percentage tax rate. From the standpoint of the taxpayers that tax rate with its prebate would be revenue neutral. With respect to those here illegally it would amount to a $10,000 fine each year, and with respect to the Federal government it would be a net gain as they would be levying that fine on five-million households here illegally. It would not reduce the amount of money we have to spend one iota and the small businesses would not be affected as we would have the same amount to spend.

Those who could not prove citizenship would scream racism. What we need to do is neutralize their claims to racism and prove them wrong at every turn and ENFORCE OUR EXISITING IMMIGRATION LAWS.