By Stephen Dinan - The Washington Times - Tuesday, February 10, 2015

A Republican congressman proposed hiking taxes on businesses that hire illegal immigrants, saying Tuesday that it could be one way to shut off the jobs magnet that draws illegal immigrants to the U.S.

Rep. Steve King, Iowa Republican, said his bill, the Illegal Deduction Elimination Act, would make a $10-an-hour wage worker cost an employer $16-per-hour without deductions, plus penalty and interest.

“This would dramatically reduce the cheap labor incentive of hiring illegal workers,” Mr. King said.

The IRS has long been in a tricky spot in the illegal immigration debate. Illegal immigrants aren’t supposed to have Social Security numbers, but the tax agency issues them Individual Taxpayer Identification Numbers, or ITINs, so that those who are working on the books can still pay taxes.

Some Republicans have said that information could be used to track down illegal immigrants, but the government has opposed those efforts, saying it could hurt tax collections and drive workers even farther underground.

Last week the IRS came under fire for confirming that it will pay out refunds to illegal immigrants who gain legal status under President Obama’s new amnesty and who refile their previous tax forms to claim tax credits from the time they were working illegally.

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