Sunday, September 3, 2017

Raise More than a Quarter Trillion Dollars of Tax Revenue by Ending Tax Subsidies for Unauthorized Employment of Illegal Aliens

Source: Center for Immigration Studies

Washington, D.C. - September 3, 2017 (The Ponder News) -- Aliens enter the United States without authorization for many reasons, but for most of them the goal is to secure employment at much higher wages than are available in their native countries. While breaking the law provides very significant economic benefits to these illegal workers and to the businesses that hire them, it comes at a cost to American workers. According to Harvard economist George Borjas, recent empirical research indicates that American workers suffer a reduction of $99 billion to $118 billion in annual wages because of illegal immigration.1

The economic rewards of unauthorized employment of aliens are not limited to the higher wages of the illegal workers and the lower labor costs of their employers. Unauthorized alien workers and their employers also enjoy multi-billion dollar tax deductions and tax credits that were enacted into law for the benefit of law-abiding workers and businesses.

When Congress returns from summer recess on September 5, it is expected to focus attention on a major reform of the federal income tax system, including a combination of lower rates and other tax incentives to families and to businesses. The largest challenge facing tax reformers is finding sufficient additional revenue to pay for the tax cuts and tax incentives they promised to the people who elected them. In fairness to the American families and businesses to whom these tax cuts have been promised, and in particular to the American families whose household incomes have been diminished by illegal immigration, Congress should consider eliminating unwarranted tax breaks to unauthorized alien workers and their employers.

Each of the following reforms — one that eliminates a tax subsidy for employers of unauthorized aliens and the other that eliminates a tax subsidy for the unauthorized workers — comes with an estimate of the additional revenues that would be raised by the reform. Together they could raise $296 billion over 10 years — more than a quarter-trillion dollars.

1. No Deduction for Wages Paid to Illegal Aliens. Section 162(e) of the Internal Revenue Code denies a deduction for "illegal payments". Even though it is illegal to employ unauthorized alien workers, the IRS has ruled that section 162(e) does not apply to the wages paid to those aliens, even if the employer knowingly broke the law.2 On January 3, 2017, Rep. Steve King and eight other members of Congress introduced H.R. 176, the New Illegal Deduction Elimination Act, Section 2 of which would amend section 162(e) to clarify that no deduction is allowed for wages paid to unauthorized alien workers. H.R. 176 provides employers a "safe harbor", allowing a deduction to employers that used the Department of Homeland Security's free, online E-Verify system to confirm the employee's eligibility to work.

The amount of wages paid to unauthorized alien workers cannot be known with certainty. One of the most extensive studies of unauthorized immigrants in the United States was conducted by the Pew Hispanic Center in 2009.3 According to that study, there were approximately 8.3 million undocumented immigrants in the U.S. labor force,4 a figure that Pew more recently estimated had fallen to 8.0 million.5 Pew estimated the median household income of unauthorized worker families to be approximately $36,000 and that there were approximately 1.75 workers per household, implying median per-worker earnings of $20,571.6 Multiplying Pew's estimated number of unauthorized alien workers by the earnings-per-worker estimate yields an estimated total of wages paid to unauthorized alien workers of approximately $165 billion.

Many unauthorized workers are employed in the "underground economy", i.e., by households and other employers that are not reporting or paying payroll taxes and presumably are not deducting the wages. A 2013 report by the Social Security Administration estimated that, of approximately seven million alien workers in various irregular work statuses in 2010, approximately 3.1 million (44 percent) had Social Security numbers (mostly false or fraudulently secured), while approximately 3.9 million (56 percent) were working in the "underground economy"7 On the assumption that employers reported payroll taxes and claimed wage expense deductions only for the 44 percent of unauthorized workers who could produce an SSN, and that most employers deducted wages at or near the corporate tax rate of 35 percent, we estimate that disallowing a deduction for wages paid to unauthorized alien workers would increase federal tax revenues by approximately $25.4 billion per year (35 percent x 44 percent x $165 billion), or $254 billion over 10 years.

2. Deny Refundable Tax Credits to Illegal Aliens. Section 24(a) of the Internal Revenue Code allows a $1,000 per-child tax credit for taxpayer's whose earnings fall below a specified threshold. The Child Tax Credit is refundable to the extent it exceeds the taxpayer's tax liability, in which case it is referred to as the Additional Child Tax Credit or ACTC. A 2011 report by the U.S. Treasury Inspector General for Tax Administration explained that aliens authorized to work in the United States are required to obtain a Social Security number (SSN).8 For aliens who need to file U.S. federal tax returns for other reasons, such as to claim refunds of withholding tax on dividends, the IRS issues Individual Tax Identification Numbers (ITINs). Unfortunately, according to the inspector general, the IRS had been permitting aliens to claim ACTCs on returns that reported an ITIN rather than a Social Security number.

The payment of ACTCs to illegal aliens is arguably a direct violation of the Personal Responsibility and Work Opportunity Act of 1996 ("PRWOA"), which expressly provides that an illegal alien "is not eligible for any Federal public benefit." The IRS has applied the PRWOA rule to prohibit payments of Earned Income Tax Credits to ITIN filers, but based on a questionable interpretation of the law has allowed ITIN filers refunds of ACTCs.9

According to the Inspector General, "[b]ased on claims made in Processing Year 2010, disallowance of the ACTC to filers without a valid SSN would reduce Federal outlays by approximately $8.4 billion over 2 years," i.e., $4.2 billion per year. Although the inspector general's figures are based on 2010 fiscal data, Treasury Department tax expenditure estimates indicate that the total child tax credit expenditure was virtually unchanged between 201010 and 2017.11 Accordingly, based on the inspector general's report, we estimate that limiting the Child Tax Credit to taxpayers with Social Security numbers would increase federal tax revenues by approximately $4.2 billion per year, or $42 billion over 10 years.

REPUBLICAN LEADERS CALL ON TRUMP TO KEEP DACA

Source: National Immigration Forum

Washington, D.C. - September 3, 2017 (The Ponder News) -- As discussions at the White House continue on the fate of Deferred Action for Childhood Arrivals (DACA), Republican leaders in Congress are urging President Trump today to keep the program in place.

“I don’t think he should do that. I believe this is something Congress has to fix,” said House Speaker Paul Ryan (R-Wisconsin) today, in answer to a question on whether President Trump should end DACA.

“I’ve urged the president not to rescind DACA, an action that would further complicate a system in serious need of a permanent, legislative solution,” said Sen. Orrin Hatch (R-Utah). “Like the president, I’ve long advocated for tougher enforcement of our existing immigration laws. But we also need a workable, permanent solution for individuals who entered our country unlawfully as children through no fault of their own and who have built their lives here. And that solution must come from Congress.”

“Over the coming months, I’ll be working closely with my colleagues in Congress and with the administration to pass meaningful immigration reform that will secure our borders, provide a workable path forward for the Dreamer population, and ensure that employers have access to the high-skilled workers they need so succeed in our technology-driven economy,” Hatch continued.

Meanwhile, more than 350 business leaders and entrepreneurs from across the country signed onto a letter urging the president to preserve DACA and calling on Congress to pass permanent legislation for Dreamers.

“We applaud Republican leaders for speaking out to protect DACA recipients,” said Ali Noorani, Executive Director of the National Immigration Forum. “Their support is indicative of widespread support across the country for a permanent solution to address the situation of our nation’s Dreamers.”

Jewish Woman Fired for Observing Passover

Source: Beckett

Washington, D.C. - September 3, 2017 (The Ponder News) -- An Orthodox Jewish woman who was fired from her job at the Metropolitan Washington Airports Authority for observing Passover is asking the nation’s highest court to hear her case. Last month, in Abeles v. Metropolitan Washington Airport Authority, Susan Abeles appealed to the Supreme Court to hold her former employer accountable for unjustly firing her from her job of 26 years for observing the first two and last two days of Passover. A ruling from the high court could protect the right of all religious federal employees to live their faith without fear of losing their jobs.

Susan Abeles was a statistician at the Metropolitan Washington Airports Authority (MWAA), the government agency that operates both Reagan National and Dulles International Airports, for 26 years. She observed Passover every year without incident until 2013, when she was punished and forced to retire despite following leave protocol. Today, Becket and Jews for Religious Liberty, an association of Jewish lawyers and rabbis, filed a friend–of-the-court brief asking the Supreme Court to hear Ms. Abeles’ case, arguing that the lower court decision “will inhibit Jewish religious exercise within the federal workplace and could easily result in a de facto government hiring ban on Orthodox Jews.”

“Talk about chutzpah,” said Eric Rassbach, deputy general counsel at Becket, a non-profit religious liberty law firm. “The Airports Authority says it was okay to fire Ms. Abeles for observing Passover because it hasn’t said anything openly anti-Semitic. If that becomes the rule, then federal agencies will have a license to terminate all of their religious employees, as long as they are careful to hide their tracks. Even Pharaoh honestly admitted that he was discriminating against Jews.”

Jewish religious law prohibits work during the first two and last two days of Passover. Millions of Orthodox Jews like Ms. Abeles have observed this important holiday for thousands of years. Despite following the MWAA’s leave policy for decades, Ms. Abeles was accused of not following protocol and forced into retirement in 2013. She sued the MWAA, which claims it is exempt from both the federal Religious Freedom Restoration Act (RFRA) and the Virginia religious freedom laws, giving it free rein to avoid all anti-discrimination laws. In July 2017 Ms. Abeles, asked the Supreme Court to hear her case.

“The Airports Authority claiming to be above the law adds insult to injury,” said Rassbach. “The Supreme Court should take this case to ensure that people of all faiths can observe their deeply held beliefs in the federal workplace without facing discrimination or being forced out of their jobs.”

Ms. Abeles is represented by Nathan Lewin of Lewin & Lewin.

AmeriCorps and Senior Corps Respond to Hurricane Harvey

Source: The Corporation for National and Community Service (CNCS)

Washington, D.C. - September 3, 2017 (The Ponder News) -- The Corporation for National and Community Service (CNCS) has deployed nearly 450 AmeriCorps members, including FEMA Corps, from across the nation to support recovery efforts in Texas. AmeriCorps members are working with the American Red Cross, supporting shelter and mass care operations, as well as providing assistance to FEMA’s logistics and disaster survivor assistance teams.

AmeriCorps Disaster Response Teams from Texas Conservation Corps and Washington Conservation Corps, in coordination with FEMA and the Texas Division of Emergency Management, are organizing the volunteer and donations management process and operations, a critical need based on demand. In addition, local Senior Corps projects across the state have started to mobilize volunteers to support shelters and manage donations.

CNCS is also calling upon the more than one million AmeriCorps alumni – many of whom have previously responded to disasters –and national network of Senior Corps volunteers to step up to fill the urgent need for trained and skilled volunteers.

Following a disaster, national service acts as a force multiplier, providing key resources and significantly expanding the capacity of existing organizations on the ground. Through all its programs and initiatives, CNCS helps communities to prepare for, mitigate, respond, and recover from disasters.

In times of disaster, AmeriCorps teams have provided critical support after countless disasters, including Hurricane Katrina, last year’s Louisiana flooding, Hurricane Sandy, tornadoes in Joplin, Mo., Tuscaloosa, Ala., and Moore, Okla., the explosion in West, Texas, and the Deepwater Horizon BP Oil Spill.

Those wanting to learn how they help and to sign up to receive updates should visit www.nationalservice.gov/harvey.

Wells Fargo May Have Lied to Congress, Say 33 Groups led by AFR and Public Citizen

Source: Americans for Financial Reform

Washington, D.C. - September 3, 2017 (The Ponder News) -- Congress must hold additional hearings to investigate whether Wells Fargo deliberately misled federal lawmakers during an active investigation, said 33 groups led by Public Citizen and Americans for Financial Reform in a letter (PDF) sent today to the U.S. Senate Banking Committee and the House Financial Services Committee. The groups suggest that Wells Fargo executives, including former CEO John Stumpf, may have knowingly and deliberately withheld information related to fraudulent insurance sales practices during congressional hearings held in September 2016.

According to the bank’s own timeline, Wells Fargo learned in July 2016 that more than 800,000 customers had been charged for auto insurance they did not need, and the bank says it ended the activity around the same time that Stumpf testified before the two banking committees about Wells Fargo’s fraudulent accounts scandal. Yet Stumpf’s testimony made no mention of this misconduct, even when he was asked directly whether fraudulent activity might exist in other business lines. The bank later reiterated his denial in written responses to questions from members of Congress.

Withholding relevant information from a congressional inquiry is a criminal offense, punishable by up to five years in prison. The letter calls on the two committees to hold further hearings to investigate Wells Fargo’s newly disclosed abuses and whether the bank lied to Congress.

“Wells Fargo had several opportunities to disclose its fraudulent insurance practices to Congress and chose not to – including in response to direct questions by Members on the two separate occasions,” the letter to the committees reads. “The information on additional abuses that has become public since the earlier hearings makes a strong case for further investigation and additional hearings by your Committees. It also suggests that the bank may have misled your Committees in previous testimony and withheld relevant information in responses to members’ questions for the record.”

“Wells Fargo has long forced defrauded consumers into arbitration to hide its misconduct from public view, but lying to Congress would cross a new line,” said Amanda Werner, arbitration campaign manager for Public Citizen and Americans for Financial Reform. “Having just admitted to nearly twice as many fake accounts as previously reported, Wells Fargo has a lot to answer for.”

“Wells Fargo used forced arbitration clauses and class-action bans to hide abuses and prevent its customers from securing justice or even realizing that problems the bank causes them are widespread,” said Lisa Donner, executive director of Americans for Financial Reform. “It now appears that they have also tried to hide the breadth of problems inside the bank, even in the face of direct questions from members of Congress. Leaders of the relevant committees should be demanding answers and further hearings to get them.”

“Wells Fargo has spent tens of millions on campaign contributions and lobbying Congress,” said Lisa Gilbert, vice president of legislative affairs for Public Citizen. “If the House and Senate banking committees refuse to investigate Wells Fargo after these latest revelations, it will be a clear indication that Congress is siding with big banks instead of their victims.”

Read the letter (PDF).

APA Extends Sympathy to the Victims of Gulf Coast Flooding, Offers Resources to Cope with Aftermath

Source: American Psychiatric Association

Arlington, VA - September 3, 2017 (The Ponder News) -- The American Psychiatric Association (APA) extends its sympathy to the victims of Hurricane Harvey, which is causing extensive flooding in metro Houston and is soon to make its way through Louisiana.

“We offer our sympathy to the people affected by Hurricane Harvey and, in some cases, those experiencing painful memories of previous hurricanes,” said APA President Anita Everett, M.D. “We don’t know the full extent of the damage caused by Hurricane Harvey since it is still active. We do know the recovery process will be a long one, and we must be mindful that people who have been affected either directly or indirectly by this disaster may experience a number of reactions in the aftermath, including fear, anxiety and sadness. We implore anyone experiencing prolonged mental health symptoms to seek professional treatment. Treatment is available and it works.”

For more information on coping with disasters as well as how to talk to children about disasters, visit the APA web site by clicking here.

The American Psychiatric Association is the oldest medical association in the country founded in 1844. The APA is also the largest psychiatric association in the world with more than 37,000 physician members specializing in the diagnosis, treatment, prevention and research of mental illnesses. APA’s vision is to ensure access to quality psychiatric diagnosis and treatment.

American Life League President Statement on Abortion Funding for Harvey Survivors

Source: American Life League

Washington, D.C. - September 3, 2017 (The Ponder News) -- American Life League president Judie Brown issued the following statement concerning the pro-abortion Lilith Fund establishing an abortion fund for Hurricane Harvey survivors:

The very idea that the pro-death LILITH FUND would raise money to kill babies during everyone's hour of need in Houston and elsewhere is beyond belief. How callous and disgusting can any pro-abortion charity (excuse the word) get? We should be doing all we can to help everyone suffering from this tragedy created by Hurricane Harvey, not adding to the death and destruction. God help us when the best response some can give is to suggest that killing babies is a charitable thing to do.

ALL recommends that, instead of funding abortion in disaster areas, people consider donating to the Houston Coalition for Life which sustained damage in the storm, to LifeHouse which is raising funds to help expectant mothers affected by the storm, or to Missions of Hope which is directly providing equipment desperately needed to dry out flooded homes.

Manufacturing Sees Big August Jobs Gains

Source: Alliance for American Manufacturing

Washington, D.C. - September 3, 2017 (The Ponder News) -- The manufacturing sector gained 36,000 jobs in August, according to the latest employment data from the Labor Department. These factory jobs gains, led by automotive and appliance sales, come amid a strong second quarter of economic expansion.

Said Alliance for American Manufacturing (AAM) President Scott Paul:

"Did the robot revolution take the month off?

"Adding 36,000 new factory jobs in August is good news for American workers. For the first time in a long time, manufacturing punched above its weight in the job market, accounting for 23 percent of total job growth. There’s great potential for continued manufacturing job growth – but only if we get the policy right.

"How can we keep up the momentum? Pass an infrastructure bill with strong Buy America preferences to put more people back to work. The administration must also invest in training the workers of the future, move forward with rebalancing trade, and hold China accountable."

Work Requirements Restored for TANF

Source: Administration for Children and Families

Washington, D.C. - September 3, 2017 (The Ponder News) -- The restoration of work participation requirements under the Temporary Assistance for Needy Families (TANF) program was announced today with an information memorandum to states. Issued by the Office of Family Assistance at HHS’ Administration for Children and Families, the new policy rescinds a 2012 Obama administration information memorandum encouraging states to apply for exemptions from the longstanding work participation standards for welfare cash assistance programs.

“Reemphasizing the work requirements in the welfare program means once again promoting gainful employment and economic independence as goals for every family,” said Acting Assistant Secretary for Children and Families Steven Wagner. “The waiver option offered by the Obama administration is being replaced today by an expectation that work should always be encouraged as a condition for receiving welfare.”

An information memorandum issued to state and territorial agencies today rescinds an information memorandum from July 12, 2012 inviting states to pursue waivers from the requirement for a state to ensure “parents and caretakers receiving assistance under the program engage in work activities.” Only one state, Ohio, applied for such a waiver, in October 2015 (and again in May 2017). The state was informed today that its application from nearly two years ago, which inexplicably sat idle under the previous administration, has been denied.

“Our agency is committed to helping low-income families transition from welfare to work,” said Office of Family Assistance Director Clarence Carter. “We cannot achieve the goal of self-sufficiency if meaningful work participation is divorced from welfare cash assistance.”

View the new information memorandum to state welfare offices.

Temporary Assistance for Needy Families program

Sacramento Paying Gangs to Stay Peaceful

Source: Fox 40

After a violent weekend of suspected gang-related shootings, Tuesday the Sacramento City Council took action to reduce the bloodshed.

It approved a controversial program called Advance Peace, which offers cash stipends to gang members who remain peaceful.

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