Thread: SC: Tax Fraud - 10 illegals bilked IRS out of $13 million

Originally Posted by onetrickydude

FairTax is the way to go unfortunately there are too many crooks and traitors in office as well as the crooks and traitors that support them in office.

There would be a war before our government is going to let go of all that money.

Yeah, but we're going to kick a bunch of their butts out of Congress in November and replace at least some of them with FairTax supporters. I believe the FairTax will be law in the not too distant future. Don't be discouraged, because every day more and more people learn about the FairTax. Glenn Beck yesterday just exposed his true self and supported the Flat Tax instead of the FairTax which along with his more immigration and free trade positions puts him most squarely in the Traitor's Goofball Corner on the critical issues of our nation.

Have you noticed recently that he's beginning to sound like a preacher? Right after his uneducated uninformed comments on the FairTax, another caller called in with another question and he went to the black board to answer it and his chalk broke ... 3 times. A very awkward moment.

God works in mysterious ways.



www.fairtax.org

AH come on they are just comming here to work and feed their families!!

if an american was caught for IRS fraud to the tune of 13 mil, he'd rot in jail. give them 30 years or pay back the loot and plea out.that 13 would turn up ill bet.i knew these criminals were cashing in on my tax money.

NoBueno wrote:

DITTIO MW!

Thanks, NoBueno. Nice to see I'm not alone in my thinking.

IMO, the argument that the so-called Fair Tax will end or reduce illegal immigration is without merit - it just doesn't make any logical sense.

If any form of amnesty is granted, this tax fraud by these animals will surely be a mundane thing.

Originally Posted by MW

NoBueno wrote:

DITTIO MW!

Thanks, NoBueno. Nice to see I'm not alone in my thinking.
$200
IMO, the argument that the so-called Fair Tax will end or reduce illegal immigration is without merit - it just doesn't make any logical sense.

Lets do the math. Perhaps that will help you to make sense of it.

The going rate for cutting chickens for American Workers in small towns in the Midwest is $9 to $10 an hour. An employer in Postville, Iowa decides to hire hundreds of illegal aliens under the present mandated tax code for $2.00 an hour less and pays $7.00 an hour for 2080 hours a year or $14,560 instead of $9.00 for 2080 hours or $18,720 a year to save $1,248,000 a year in wage cost. The employer also saves another 7.65% on FICA expenses for Social Security and MediCare on the lower wage. $1,248.000 x 7.65% or another $95,472 a year for a combined savings of $1,343,472. That assumes the employer reports the income and pays the FICA taxes. Many don't and are never caught. For those, they save the whole 7.65% of the whole wage which is $334,152. And if they aren't reporting the $334,172, then they aren't reporting the employee's share either and are pocketing that additional $334,172. Is the illegal alien going to report them? Nope. Does the illegal alien even know the difference? Nope. Does the government care? Nope, the government loves illegal aliens. So the savings for an employer of illegal aliens under our present mandated tax code ranges from $1,343,472 to $1,343,472 + $334,171 + $334,171 = $2,011,735 a year.

Employer is happy saving between $1,343,472 to $2,011,735 a year in wages and FICA costs. Illegal aliens are happy earning $14,560 a year less their $1,113.84 a year in SS deductions whether the government gets it or their employer keeps it, because the illegal aliens claim maximum deductions for the W2's to reduce their withholding for income tax if their employers report. Government is happy integrating our population with foreign countries.

Tax time comes and they file their tax returns. They claim their earned income tax credits, they claim their child care credits and instead of paying tax, they go home with a tax welfare check of $4,000 a year to supplement their lower wage, courtesy of the US taxpayer. So their net effective wage isn't $14,560 less $1,113.84 or $13,446.16, it's actually $14,560 + $4,000 = $18,560 or more.

So everyone is happy. The employer is making money, the illegal aliens are making $9 an hour net after tax, the government is crowing about the so-called $1,113 they collected in Social Security contributions, and the illegal immigration train moves forward from plant to plant, store to store, operation to operation, office building to office building with virtually no threat at all from anyone to intervene on behalf of the American Workers who need $9 an hour gross.

The American Worker who earns $18,720 gross pays 7.65 in SS and MediCare taxes or $1432.08 plus 10% of their remaining net after deductions or another $1,000 or so in Federal Income Tax maybe more if they don't have kids. Sure they could cheat and claim more deductions and more kids than they have like illegal aliens but most Americans don't do that because they're targets of the IRS when illegal aliens aren't. The IRS totally ignores illegal aliens like every other agency of the US government. So the American Worker earning a gross of $9 an hour, goes home with a net of $8 an hour, less than the illegal alien earning $7 an hour.

So the illegal alien is hired in at $7 an hour but goes home with $9 an hour thanks to the mandated income tax code. The American Worker is hired in at $9 an hour but goes home with $8 an hour before state income taxes so thanks to our mandated income tax code, illegal aliens live better in our country working at the chicken plant in Postville, Iowa at $7 an hour than American Workers earning $9 an hour.

Under the FairTax, everything changes to the benefit of the American Workers. Under the FairTax, the illegal alien with a family of 4 earning $7 an hour or $14,560 a year will pay 23% of their expenditures in FairTaxes. Their net after FairTax wage is now $14,560 - $3,348 in FairTaxes on their expenditures reducing their net to only $11,211 if they spend their whole check on new products and services instead of $18,560 under our current mandated income tax system. Under the FairTax, the American Worker with a family of 4 who earns $9 an hour or $18,720 earns a net after tax wage of just that, $18,720 with no deductions and can sign up for a rebate to reimburse 23% of the FairTaxes they would pay on expenditures up to the family consumption allowance which for a family of 4 is $6,702 a year. So now the American Worker has available disposal income of $18,720 + $6,702 or $25,422 and while they will spend part or all of the $6,702 on FairTaxes, it is their choice how they spend it. If they spend it all on products and services subject to the FairTax, they still went home with their full $9 an hour wage whereas the illegal alien only went home with $5 an hour.

So now the illegal aliens aren't happy any more. Instead of stealing jobs at a lower wage that are supplemented with tax credits and cheating through the mandated income tax code, they're in the US trying to live on $5 an hour real-time, real-money.

The employers are paying a higher wage $9 an hour to the American Workers BUT they're so happy now because a) they don't pay $1,432 per worker x 300 workers or $429,824 a year in employer paid FICA taxes and b) they don't have to pay 35% of their net income to the US government which on a business that earns $3 million a year in net profits, they save $1,000,050 a year in federal income tax which c) saves them a total of $1,429,824 a year and more than they saved in wages and FICA costs hiring illegal aliens before their savings on compliance costs d) their sales increased because all American Workers had more net expendable income to purchase their products e) they earned their profits legally without risk of getting caught violating US tax, immigration, labor and civil rights laws, f) they no longer have to hire 20 people to handle IRS tax returns and have reassigned these 20 people at an annual administrative cost of $40,000 per person x 20 = $800,000 a year times 1.29 in benefits or $1,032,000 a year in non-income producing IRS related compliance costs to income-producing supervisory, sales, quality control and marketing positions in their production operations which g) results in a $2,500,000 a year FairTax tax advantage for this chicken plant in Postville, Iowa under the FairTax, and an 80% comparative wage advantage for American Workers over illegal aliens.

The FairTax changes everything for everyone. Illegal aliens can't afford to live here on $5 an hour, they can't afford to send remittances home, they can't afford to pay smugglers, employers no longer have any incentive to hire them, and the government and communities now have no reason whatsoever to protect them.

The FairTax doesn't by itself solve the drug-related illegal immigration so we'll still have that portion fo the issue to deal with. However, when they can't work by day and run drugs by night, the drug cartels are going to have to increase their pay-out to their distribution and smuggling network and without the drug runners being planted in the communities as just innocents "doing the jobs Americans won't do", "looking for a better life", it will definitely hurt the illegal drug trade as well. But, it won't shut it down, to shut down the drug-related portion of illegal immigration which is a huge component, the FairTax provides the means to legalize/regulate/tax under the FairTax the illegal drug trade so we can convert this illegal violent foreign cartel run drug trade to a legitimate regulated trade run by licensed US citizens only which through simple economics shuts the foreign cartels down in the US and closes down the illegal immigration associated with it.

No one wants illegal aliens to pay any tax, because we don't want them here to begin with. But while the FairTax taxes them while they're here, which is a good thing, it isn't about who pays the tax because everyone pays it, it's about who gets the job based on who gets the Rebate. The FairTax creates the first economic incentive in American history for American Employers to "GO LEGAL" and hire American Workers.

www.fairtax.org

An Obamacare is going to hire an estimated 16,000 new IRS agents to get it under financial control.

Lucky us. Idiot upon idiot.

Originally Posted by laughinglynx

An Obamacare is going to hire an estimated 16,000 new IRS agents to get it under financial control.

Lucky us. Idiot upon idiot.

Actually those 16,000 new IRS agents will be forcing US citizens to buy health insurance at higher premiums and pay more taxes to receive less benefits, so illegal aliens can be sure to get their for free.