Showing posts with label Earned Income Tax Credits. Show all posts
Showing posts with label Earned Income Tax Credits. Show all posts

Thursday, February 26, 2015

Don't Give Illegals Social Security Numbers. Give Them Tax I.D.'s

If President Obama gets his way, amnesty to illegal aliens will include the issuance of Social Security numbers.

This is just plain wrong. A Social Security number gives them access to all too many federal and state services as benefits including the ability to easily register to vote, which would be a federal crime.  Under the Motor Voter law anyone with a valid Social Security number can register to vote anytime they apply for or renew a driver's license or sign up for public assistance.  No proof of citizenship is required. A Social Security card also allows them to file a tax return and get a refund under the Earned Income Tax Credit that is in excess of any taxes they many have paid and/or may have been refunded.

None of these things are afforded to legal foreign residents who live and pay taxes in this country because they typically don't get Social Security numbers, they get an Individual Taxpayer Identification Number (ITIN).  The ITIN looks exactly like a Social Security number but the lead digit is a "9", which serves as a red flag that the person holding that number is a guest in this country and not a citizen.  The ITIN serves the purposes of collecting taxes and Social Security/Medicare payroll taxes (FICA, but negates the ability of the holder to file for an Earned Income Tax Credit refund.

Congress should act now to insure that, if Obama is allowed to give amnesty to illegals, they are only eligible for Individual Taxpayer Identification Numbers starting with the digit "9". Otherwise, a new study has shown, that many illegals could file tax returns for the last 4-years and get up to $35,000 in retroactively paid Earned Income Tax Credits.

References:

Obama amnesty creates loophole for illegal immigrants to vote: http://www.washingtontimes.com/news/2015/feb/12/obama-amnesty-creates-loophole-for-illegal-immigra/?page=all

Under current law, non-citizens are not allowed to vote in federal elections, and it is a federal crime for a non-citizen to vote or register to vote in such an election, punishable by imprisonment and/or the initiation of removal proceedings against that individual: http://en.wikipedia.org/wiki/Right_of_foreigners_to_vote_in_the_United_States

Motor Voter Act: http://en.wikipedia.org/wiki/National_Voter_Registration_Act_of_1993

Taxpayer Identification Numbers: http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-%28TIN%29#itin

Amnesty Beneficiaries Could Claim More Than $35K In Tax Benefits In First Year: http://www.breitbart.com/big-government/2015/02/25/amnesty-beneficiaries-could-claim-more-than-35k-in-tax-benefits-in-first-year/

Sunday, December 21, 2014

The $15 Minimum Wage and Maribel versus McDonald's

Recently, I ran across a story in the DailyMail about a Mexican immigrant by the name of Maribel who organized a strike against a McDonald's in her Los Angeles neighborhood.  Her grievance was that she and her two toddlers couldn't live on the $9.35/hour that McDonald's was paying her.  Which, by the way, is 35 cents higher than California's minimum wage of $9/hour, which is set to be $10/hour as of 1/1/16.

Because of her situation, she says she needs $15/hour.  Not $10.  Not $12. But, exactly $15.  Which is what apparently the magic number that everyone in the U.S., who is earning a minimum wage, thinks they should be making in order to live. This despite the fact that the cost of living varies widely in this country; from state to state and, from urban areas to rural America.

My biggest problem with the $15 minimum wage is that it is higher than the average annual income of everyone living in the County of Los Angeles.  In that county of 10 million people, the average per capita income was $27,749 in 2013.  When broken down to an hourly wage, it is equal to $13.34. As such, are we then supposed to believe that as many as 5 million Angelenos,  making less than $15/hour, are unable to live?

My other problem is with Maribel's story itself.  While it was never stated, it is obvious that she is living in this country illegally because her mother brought her here from Mexico when she was just 7 months old.  That's a problem for a lot of people like Maribel.  Because, if she was a naturalized citizen and given the fact that she had two children and is only making $9.35/hour -- even if she worked a full 40 hour week -- she would be eligible for all kinds of state and federal welfare programs.  Programs that have an aggregate worth in the tens of thousands of dollars.

Also, because she is in poverty, she will not have to pay any federal taxes.  Something that wouldn't be the case if she made $15/hour.  She is also eligible to get money back from the IRS by filing a tax return and by claiming Earned Income Tax Credits for herself and her children. An amount that could be as high as $3300; something she would lose when making $15/hour.

Once again, the $15 minimum wage proponents don't seem to see what many single parents, assuming they are citizens, will be giving up by going to this level of a minimum wage.  As is often said:   Be  careful of what you wish for.


References:

Maribel vs McDonald's: Single mother of two goes on strike against fast-food giant demanding $15 minimum wage and a union for employee: http://www.dailymail.co.uk/news/article-2878565/Maribel-vs-McDonald-s-Single-mother-two-goes-strike-against-fast-food-giant-demanding-15-minimum-wage-union-employees.html

2014 Poverty Guidelines:  http://aspe.hhs.gov/poverty/14poverty.cfm

Welfare In California: http://en.wikipedia.org/wiki/Welfare_in_California

Cost of Living Calculator - CNN Money: http://money.cnn.com/calculator/pf/cost-of-living/

"Poverty" pays better than middle-class employment: http://humanevents.com/2012/11/28/poverty-pays-better-than-middle-class-employment/

Policy Basics: The Earned Income Tax Credit: http://www.cbpp.org/cms/?fa=view&id=2505