Tuesday, April 9, 2013

The Alien Worker

 

Here so much about illegal immigration any more, makes me wonder if there is a solution.  Personally I doubt it, for there are so many benefits to both sides.  It does make good political hay for whomever the speaker is.

One of the things people say is the alien worker works for less and does jobs the local worker don’t want.  That is blowhard verbiage by whomever.

Look at what an employee at the local mart makes.  Pat starts around 10 bucks an hour up to 15 bucks.  Keep it simple, yes I will.  $10.00 for the employee and $8.00 for the illegal. 

At 8 bucks the illegal makes more money then the employee.  Taxes are withheld, roughly 25% with a take home of $7.50/hr.  So the alien is making $.50/hr. more.  They pay no taxes on income under the table.  Second the employer gains also.  The employer does not have to match unemployment taxes or Social Security payment.  Those combined ad an additional $2.00 the employer has to pay out.

Not even going to address health insurance.

So for the employer, there is big money to be made by using illegal aliens.  They pay less for labor and have less company expenses, in that there government paperwork is reduced.  A profit of $4.00/hr. per employee is nice revenue.  On 10 people it would net out at an extra $40.00/hr., $320.00/day, $2240.00/week.

Just the economics of hiring illegals becomes very appealing.  Also the company with illegals can also do work for less, beating out the competition. 

Now if I could work and not pay taxes, I could live pretty good.  I would take some of those menial jobs the illegals take.  Oh I would still pay the consumption taxes, gas, excise, sales, etc.  The illegals also pay that on what they buy in the states.

Talking with a friend and asked her if she would like a raise of about $250.00 a month.  Her eyes lit up and she said the extra income would be nice.  I said if taxes were cut, you would get a small raise of about that amount.  Her face went blank then a big question mark popped on.  She did not grab the connection between the tax cut and a pay raise.

So when I listen to the debate on immigration I roll around the economics of the debate and how taxes plays such a role.

Wouldn’t it be nice if the IRS was repealed.  Then we all could work like aliens and make money to keep.

1 comment:

Joe said...

It does seem a logical step when you think about it. If the tax situation makes it more advantageous to be illegal than legal something must change. They raise taxes on the citizens, they punish the legal gun owner for the crimes of others...in the end it appears punishing law abiding people is the hallmark of this administration.