Monday, February 25, 2008
The Major Economic Quandary
What if what I'm seeing on federal tax receipts is actually the replacement of illegal employees with legal employees?
The picture would be more consistent, but a lot worse.
Idoc, federal unemployment taxes are moving up. WIET in Feb looks a lot better too. All the other economic reports still look to be poor and getting worse.
There is a lot of off-books employment with illegals, and there are also a lot of illegals who have an ITIN or SS number (sometimes not their own), work on the books, but don't pay much in the way of taxes.
Right. This is trivially accomplished by stating they have 6 or 8 or whatever number of dependents on the W-4 they fill out when they are hired.
For an obvious reason illegal aliens see no reason to be truthful on this form. It is because tax evasion results in deportation; instead of prison as for citizens.
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