GOP Idea: Stop the Federal Government from Licensing Illegality

By Paul   06/09/09 06:00 AM

Though nearly impossible to believe, the U.S. federal government provides strong incentives to break immigration law in the form of the Individual Tax Identification Number (ITIN). An ITIN is a pseudo-Social Security number that allows for income of "foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs"

So, who exactly are these people who have "tax filing requirements," but do not have SSNs? And how, exactly, does the hiring of these individuals work --- since hiring illegal workers is, well, illegal. Though its not like anyone is enforcing that law? Would not the lack of a valid SSN raise suspicion that someone may be illegal?

First, let's be clear: the most important public policy action that the United States can take to be competitive in the 21st century is to liberalize its immigration laws. Second, the goal of liberalizing these laws should be to become the talent magnet for the world. Third, these opportunities should be provide on a fair and transparent basis, without preference to nationality: proximity to the U.S. should not equal probability of entrance. Most importantly, those who willfully break the law should go to the back of the line, not the front.

Yet your government has decided to provide those who broke the law with a vehicle to buy cars, houses and maintain jobs because the IRS has an insatiable appetite for tax dollars, but apparently not for justice. The IRS has also magically made a rule that these numbers cannot be shared with law enforcement --- meaning that even if the INS wanted to enforce the law, the IRS rule refuses to assist in the enforcement of the law.

However, this is where Republicans can use multiple administrative and Congressional maneuvers to stem blantant illegality. First, the IRS can revise the rule that disallows numbers to be shared --- but with the Obama administration in charge of the IRS, this is a remote possibility. More plausibly, the Senate Republicans can attach a riders to bills that would be politically difficult for red state Democrats to vote against. First, they could make it a crime for someone here illegally to apply for an ITIN and allow local governments to enforce the law. Second, they could ban ITINs for being used for anything other than paying taxes (thus eliminating the advantage of being able to apply for credit, open a bank account, get a mortgage). If that is unfeasible, they could force any bank allowing an ITIN to vouch for the legality of the applicant. (In other words, put the bank legally on the hook for the ITIN user, much like the employer is on the hook if s/he employs illegals.) Considering that the IRS was able to invent a number and policy out of thin air, the above suggestions are more than possible.

In other words, Newt's idea about finding illegals, is not a joke --- we have the names and addresses, all we need to do is send the package.

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