Washington, DC- Today Congressman Steve King (R-IA) introduced the the New Illegal Deduction Elimination (New IDEA) Act. New IDEA clarifies that wages and benefits paid to illegals are not tax deductible. It gives employers "safe harbor" if they use the E-verify program, which ensures employment documents identify lawful workers. When the IRS determines employees are illegal, the business expense for the wages and benefits paid to them will be denied and will instead become taxable income. When taxes are assessed, including interest and penalty, a $10/hour illegal worker costs the employer approximately $16/hour. New IDEA is serious about cracking down on illegal labor and leveling the playing field for law-abiding employers. Congressman King released the following statement regarding the introduction of the New IDEA act:
"This is the most effective immigration legislation that has come before Congress since I have been here," King said. "I guarantee it will shut down the jobs magnet in the United States and give employers the incentive to voluntarily clean up their own workforce. The New IDEA Act will start solving the illegal worker problem and open up as many as 8 million jobs for Americans."
King was joined by 24 co-sponsors, including lead original cosponsor, Congressman Louie Gohmert, and Congressman Brian Bilbray, Chair of the Immigration Reform Caucus. Gohmert and Bilbray released the following statements regarding the New IDEA act:
"The beauty of the New IDEA Act by my friend, Congressman King, is its clarity and simplicity," Gohmert said. "The principle should have gone without saying; but, unfortunately, in Congress, it must be said so all here understand. We cannot afford to keep paying all the benefits for people who are illegally here helping push us toward a bankrupt country no one wants. Steve's principle is that if an employer hires people, who are not legally here, they are not legally employed; and, therefore, their expense is not legally deductible."
"There is no question that the promise of illegal jobs is the greatest magnet for illegal immigration. The New IDEA act gets to the heart of our illegal immigration problem and attacks it at the source, employers who willingly provide jobs to illegal immigrants," stated Bilbray.
