Quote Originally Posted by legal4mykidsfuture
Isn't this something that should also be done at the federal level, to recoup federal income and social security taxes that are not being paid? Actually, if the low end of the federal income tax withholding is around 15%, and employee share of social security/medicare is around 7.5%, should not the federal government require money transfer agencies to withhold 22.5% of the money if the person cannot show either a US passport, foreign passport with valid visa or "green card", or a paystub showing that federal taxes are being withheld. Drivers licenses are generally worthless to prove legal redidence. States like Georgia would, in addition to the federal government, be able to withhold as in this legislation to recapture revenues for state and local costs.
There would be no way of knowing if the money being wired has already been subject to income and social security withholdings. This is basically a service tax. The state is recouping some of the cash that otherwise would have been spent there.