Why You Pay Too Much In Taxes

George Washington's picture

Illegal Aliens Scam Tax Refunds

For years, American taxpayers have been shelling out $4.2 billion dollars per year to pay for a scam.

A report by the Inspector General found that some 2 million illegal immigrants have been receiving large tax refunds by pretending that numerous dependents live with them ... when, in fact, most of the dependents live in Mexico and have never lived in the United States.

Once whistleblowers called attention to this problem, their IRS bosses told them to ignore the fraud and look the other way:

WND notes:

The problem was not a revelation to the Northern California IRS field-office worker who viewed the report: “The fraud has been going on for years,” he told WND. “Business as usual.”

“As the video indicates the Service does nothing,” he said, asking WND not use his name to avoid reprisal.

(The Federal Reserve has been bailing out foreign banks for years; but we assume that this is not a backdoor bailout for foreign nationals.)

Giant Corporations Scam Tax Refunds

Pulitzer prize winning reporter David Cay Johnston reports that - in 16 states - giant companies pocket your "state income taxes".

This includes foreign corporations.

Workers are never informed that their "state income taxes" are being pocketed. And states often refuse to make this information public, claiming that it is "proprietary information".

In addition, big companies use a variety of international scams to avoid taxes:

The Washington Post notes:

About two-thirds of corporations operating in the United States did not pay taxes annually from 1998 to 2005, according to a new report scheduled to be made public today from the U.S. Government Accountability Office…

In 2005, about 28 percent of large corporations paid no taxes…

Dorgan and Sen. Carl M. Levin (D-Mich.) requested the report out of concern that some corporations were using “transfer pricing” to reduce their tax bills. The practice allows multi-national companies to transfer goods and assets between internal divisions so they can record income in a jurisdiction with low tax rates…

[Senator] Levin said: “This report makes clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States.”

Indeed, as ... Johnston documents, American multinationals pay much less in taxes than they should because they use a widespread variety of tax-avoidance scams and schemes, including:

  • Selling valuable assets of the American companies to foreign subsidiaries based in tax havens for next to nothing, so that those valuable assets can be taxed at much lower foreign rates
  • Pretending that costs were spent in the United States, so that the companies can count them as costs or deductions in the U.S. and pay less taxes to the American government
  • Booking profits as if they occurred in the subsidiary’s tax haven countries, so that taxes paid on profits are at the much lower safe haven rate
  • Working out sweetheart deals with certain foreign governments, so that the companies can pretend they paid more in foreign taxes than they actually did, to obtain higher U.S. tax credits than are warranted
  • Pretending they are headquartered in tax havens like Bermuda, the Cayman Islands or Panama, so that they can enjoy all of the benefits of actually being based in America (including the use of American law and the court system, listing on the Dow, etc.), with the tax benefits associated with having a principal address in a sunny tax haven.
  • And myriad other scams

Indeed, some of the world's biggest companies not only dodge all taxes, they actually enjoy a negative tax rate ... where they are paid money by the U.S. government, just like the illegal immigrants discussed above.

The World's Richest Hide $31 Trillion Dollars to Avoid Taxes

A new report from the former chief economist at the prestigious McKinsey firm - an expert on tax havens - concludes that

The Guardian notes:

A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much as the American and Japanese GDPs put together ....

James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer.

He shows that at least £13tn – perhaps up to £20tn [i.e. $31 trillion dollars] – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy".


The detailed analysis in the report, compiled using data from a range of sources, including the Bank of International Settlements and the International Monetary Fund, suggests that for many developing countries the cumulative value of the capital that has flowed out of their economies since the 1970s would be more than enough to pay off their debts to the rest of the world.


"The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments," the report says.

The sheer size of the cash pile sitting out of reach of tax authorities is so great that it suggests standard measures of inequality radically underestimate the true gap between rich and poor. According to Henry's calculations, £6.3tn of assets is owned by only 92,000 people, or 0.001% of the world's population – a tiny class of the mega-rich who have more in common with each other than those at the bottom of the income scale in their own societies.

"These estimates reveal a staggering failure: inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people," said John Christensen of the Tax Justice Network. "People on the street have no illusions about how unfair the situation has become." [Remember that rampant inequality destroys economies. And conservatives or liberals are both offended by it.]

Al Jazeera reports:

Rich individuals and their families have as much as $32 trillion of hidden financial assets in offshore tax havens, representing up to $280bn in lost income tax revenues, according to research published on Sunday.

The study estimating the extent of global private financial wealth held in offshore accounts - excluding non-financial assets such as real estate, gold, yachts and racehorses - puts the sum at between $21 and $32 trillion.


John Christensen of the Tax Justice Network told Al Jazeera that he was shocked by "the sheer scale of the figures".

"What's shocking is that some of the world's biggest banks are up to their eyeballs in helping their clients evade taxes and shift their wealth offshore," said Christensen.

"We're talking about very big, well-known brands - HSBC, Citigroup, Bank of America, UBS, Credit Suisse - some of the world's biggest banks are involved... and they do it knowing fully well that their clients, more often than not, are evading and avoiding taxes."

Much of this activity, Christensen added, was illegal.


The research estimates that since the 1970s, the richest citizens of these 139 countries had amassed $7.3 to $9.3 trillion of "unrecorded offshore wealth" by 2010.

Private wealth held offshore represents "a huge black hole in the world economy," Henry said in a statement.

Either Eliminate Taxes - Or Tax Fairly - But Don't Allow Fraud to Rob the Middle Class Blind

Some say that we could eliminate all taxes if we take away from the big banks the monopoly power to create credit, so that the government doesn't have to pay trillions on interest for that credit.

Some say that income taxes are illegal, because they were never ratified by the states.

Some say that - since more than half of all government discretionary spending goes to imperial wars of adventure and most of the rest is thrown at the big banks so they can keep ripping us off - paying taxes is just propping up a destructive system.

Others - including some leading conservatives - say that the problem is that the wealthiest haven't been forced to pay their fair share of taxes. let off too easy.

We're not weighing in one way or the other. But one thing is for sure: either no one should pay taxes, or we should all - illegal immigrants, giant corporations and the super-rich - be subject to the same rules and pay our fair share.

Soaking the middle class is unfair, unjust and unAmerican. Indeed, while the Boston Tea Party was a revolt against taxation without representation, it largely centered on the British government’s disproportionate tax breaks – towards the East India Company, the giant company which dominated the tea market and hurt small American business.

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Burticus's picture

The only solution is to actually follow the constitutional prohibition against direct unapportioned federal taxes.  You cannot allow the feds to tax citizens, then use this "federal money" to control the state legislatures.  Start by repealing the 16th & 17th amendments and the (not really) Federal (with no) Reserve Act.  This will only be possible by first firing all the elephant and jackass sock puppets in the ruling party.

ItsDanger's picture

How do you get a SSN when you're illegal anyways?  The last part of the article is more or less accurate when describing the int'l tax structures for companies (not sure about getting the local govts to falsify tax rates though).  When you dont have domestic control tax rules on foreign entities than its very easy to avoid taxes.  These structures are expensive though.   A friend asks me about tax savings and I tell him, you need to make more  money in order save on taxes.

monad's picture

We pay too much on taxes because slavery is an economic model, you bloviating bovines.

Hubbs's picture

Now I have one less statistic to follow: The meaningless stated corporate income tax rate in US vs other countries to counter arguments concerning corporate competitiveness in US.


It doesn't matter what the stated rate is. It matters what is actually paid. 


monad's picture

What is paid, deducted from the huge subsidies.

Escapeclaws's picture

[Senator] Levin said: “This report makes clear that too many corporations are using tax trickery to send their profits overseas and avoid paying their fair share in the United States.”

Maybe Senator Levin could use the NDAA that he voted for against some of these corporations.

ebworthen's picture

If you are responsible and follow the law you are a Pinata for the illegals, the banks, the politicians, the Kleptoligarchy - period.

Fred Hayek's picture

Great stuff, as usual, George! Another point that I don't think you explicitly hit was that circa 1950 corporations were the source of something like 30% of federal tax revenue. Now the number is something like 8%. It's a joke and it's not because our rates are too low. We have higher corporate tax rates than almost all other industrial nations. The problem is that the couple who own 4 dry cleaners are paying that rate but f***ing GE run by Obama's squeeze, Jeff Immelt, is paying zero with all their loopholes and dodges. We'd get more money and make it more fair for small business if we lowered our rates but eliminated every loophole, every special provision, every single one.

But politicians don't get bribes, oops!, I'm sure I meant to say, um, campaign contributions. Politicians don't get bribes . . aw jeez, there's that nasty truth again! They don't get them if corporate taxes are essentially a flat tax. They get money to be corrupt if special favors can be dispensed.

madridisburning's picture

I do believe that if the real George Washington found out this hack is using his name, he would step out of his grave and challenge bogus George to a duel.

madridisburning's picture

WND? Authoritative "news" source. Chuckle!

silverdragon's picture

Americans need to starve the beast.

Govt needs to reduce spending by 10% per year until the budget is balanced.

Americans have the governemnt they deserve.

legal eagle's picture

Of course, one should be cautious in not humbling themselves before the IRS Gestapo, very cautious.

macdec35's picture

Tax is simple, to get the most money the Government has to tax where there is the most return, the middle class, there are more people there. Like the old bank robber said, he robbed banks because that was where the money was.

world_debt_slave's picture

Just saw headline on DrudgeReport that Apple uses "phantom taxes" to skip paying billions of dollars in taxes a year.

dolph9's picture

I'm telling you, anybody who pays taxes in this country is a serf.

I pay taxes, and I'm a serf.  I don't want to go to federal pound-me-in-the-ass prison.

miltiadis's picture

Why not Tax the Earth for having the honour to host us?

One Word Tax Madness

Blue Dog's picture

No, it's because the government spends too much. The top 1% pay 21.5% of all state and federal income taxes.


And the bottom 50% of wage earners pay almost nothing in taxes.


The bottom line is that the federal government spends too much. If they collected 20% more in taxes they'd increase spending by 25%. Raising taxes never closes the deficit.



Walt D.'s picture

You missed out the most important reason:

Government spending, at the Federal, State and Local levels, is out of control.

laomei's picture


Here's a stat from the other end of the economy... the poor.
1976: Median household income: $10,962
1976: Poverty threshold (assuming a 2 person household, no kids): $3,838
Earning 35% or less of the median was legally considered poverty.
Minimum wage in 1976 was $2.30 an hour.

2011: Median household income: $51,413
2011: Poverty threshold (assuming a 2 person household, no kids): $15,063 
Earning 29.3% or less than the median was legally considered poverty.
Minimum wage in 2011 was $7.25 an hour.

"Median individual income" stats would make this easier, as "per capita" is kinda bullshit. And I would really be interested in calculating this all out on an individual basis using a poverty line for singles.

So, anywho, looking at this. To hit the poverty threshold in 1976 at minimum wage it would take 32.1 hours a week, 52 weeks a year.

At present, it takes 39.955 hours just to hit poverty.

Poverty in 2012 means a full time, 40-hours a week job at minimum wage. You have to work 19% more just to get to the same fucking place you would be at 36 years ago.

How about how much you get to keep of that poverty wage? (No, I am not bothering with state taxes here)
1976 tax rates:

 14%: $0-$1000

 15%: $1001-$2000

 16%: $2001-$3000

 17%: $3001-$4000

Standard minimum deduction of $2100 filing jointly. FICA was 5.85% leaving $3,613 pretax and $1,513 taxable. Taxes would be $217. End of the day, in your pocket you have $3,396 or an effective overall tax rate of 11.5%. Or in real terms, you worked 3.69 hours a week for the taxman. Inflation adjusted, this is $13,696.09 today.

2011 tax rates:

 10%: $0-$17,000

Standard deduction of $11,600 filing jointly. FICA was reduced temporarily to 5.65% leaving $14,212 pretax and $2,612 taxable. Taxes would be $261. End of the day, in your pocket you have $13,951 or an effective overall tax rate of 7.4%. Or in real terms, you worked 2.95 hours a week for the taxman. Inflation adjusted, this is $14,232.51 today.

Sure, I could have picked a few years later on, but this was more or less near the end of good times, and when things started turning to shit.

Let's look at 1982, 30 years ago... just for laughs.
1982: Median household income: $18,422
1982: Poverty threshold (assuming a 2 person household, no kids): $6,487 
Earning 35.2% or less than the median was legally considered poverty.
Minimum wage in 1982 was $3.35 an hour.

To hit the poverty threshold in 1982 at minimum wage it would take 37.24 hours a week, 52 weeks a year.

1982 tax rates:

12%: $3401-$5500

14%: $5501-$7600

Standard minimum deduction of $3400 pre-figured in for filing jointly. FICA was 6.70% leaving $6,052 pretax and an income tax of $329. End of the day, in your pocket you would have $5,723 or an effective tax rate of 11.8%. Or, in real terms, you worked 4.38 hours a week for the taxman. Inflation adjusted, this is $13,609.35 today.

Of course, what's not being included in that inflation stat, are the actual costs of things like health insurance or education. CPI is also manipulated (obviously). In 1970, total health care expenses (average per capita) was $356. By 1980 it was $1,110.

Rent has outpaced inflation as well.

Poverty levels, in relation to the median have not tracked at all, they are off 6 percentage points from what it was before. To hit that poverty level, you also are working more at a minimum wage job. Working that 1976 minimum wage job for a full 40 hours a week. After FICA, taxes, and inflation, you'd be looking at the equivalent of $16,732.94 right now. Pre-tax, it's an equivalent of $9.28 an hour.

Compare that to today @40 hours a week.
1976: $16,732.94
2011: $14,232.51
That sound you hear is you being fucked out of 15%, right off the top.

Let's readjust poverty levels by those 6 points now eh, just bump it to the 35% to keep the figure nice.
Adjusted 2011 Poverty Level: $17,995
That results in you needing to work 47.73 hours a week to hit it at minimum wage, or $8.65 an hour at 40 hours a week.
So, cool.. let's factor for that. Post tax you're sittin' on $16,440 or $16,771.74 in 2012 dollars. Sure hope you got that raise to keep up with the inflation. Bust that hump for that extra $40 a year slave!

Let's look at college again eh? 

This is looking at public, in-state, 4-year universities including tuition and all other fees. Average rate in 1976-77: $1,218 per year. That's a whopping 10.2 hours a week at minimum wage. Or essentially a solid summer of full time if you ignore taxes. In 1982-83 it was $2,139. Ok, it got bumped up to 12.28 hours a week now. Working all summer is gonna gap you about $500.

How about now? Well, in 2009-2010 it was $12,804. Obviously higher now, but what the fuck, let's use that number. Assuming no changes, a minimum wage job is going to demand 34 hours a week (ignoring taxes). Working all summer full time? Not even fucking close. You're only out? Loans obviously, which are all much higher than inflation even for the fed ones. The ones that don't fuck you as much are capped at $5500 a year for freshmen. You have been gapped, enjoy the fun of private loans and co-signers! You are now destined to graduate into an economy that increasingly does not need you and has been screwing you for 40 years.

What's really funny is looking at that 34 hour figure. To get through college, you have to work more than it took to get to poverty status for an empty nest couple back in 1976 (ignoring taxes of course). But let's look at taxes! Using standard deductions and the education deduction it's $13,925 pretax or 37 hours a week at minimum wage. Congrats! You are now doing 1982-levels of poverty threshold work for a empty nest couple! If you are not being claimed, you can snap up to $13,500 a year with no income taxes. That's still 36 hours a week.

So it totally makes sense now if you have boomer parents. Dad worked as a part-time janitor to pay for all of college. Grandpa did a little side-work to put mom through. No debts at all in the end. Why the hell can't you bootstrap your ass and do the same? After all, they were able to do it just fine.

Scholarships, grants... sure ya might get a few to help out. If you are lucky maybe you saved some cash up to pay for college. If you are lucky you have parents who are willing to foot the bill. But we're not looking at those, we're looking at poor average people. For the simple fact that being at a level of poverty back in the day wasn't as easy as it is now. A blue collar, minimum wage household could still find a little room to put a kid through college. Or the kid could, with a little work put themselves through at a decent place. I'm not talking about the gifted, the lucky, the talented here... I'm talking average realities.

Now if you want to talk median... $51,413 in a state with no income taxes and taking no credits or deductions beyond the standard is $43,822 a year or $3652 a month. How much is left after rent/mortgage+taxes+insurance/utilities, car expenses, medical and other insurance, food, etc? Now, do keep in mind, that it's the median, so 50% are below that number. 
And here's a nifty little thing for you consumer units to calculate with: http://www.bls.gov/news.release/cesan.nr0.htm 
How much is left over after all taxes and I do not believe that this covers loan payments.

And yet, people wonder why everything is fucked....

So, once you take all of this into account, you can see how everything is just barely (read "not at all") scraping by. Unwilling to face the reality of the situation, it's just far easier to yell about taxes, which would free up a tiny bit more money. When there's enough money already, taxes are not really a big issue. When money's tight, it feels like theft. Unfortunately, no one is really putting forth the question of WHY everything is fucked, but that really has more to do with who actually controls the national dialogue, and it sure as hell isn't the self-declared "middle class".


SmittyinLA's picture

We could screw those people by abolishing taxes on corporations owned by Americans, and cutting the federal personal income tax rate to 3%. 

Dr. No's picture

In my view, this article was written with the wrong perspective.  By writing from a government "centric" standpoint, you mislead the reader.  You state that :


A report by the Inspector General found that some 2 million illegal immigrants have been receiving large tax refunds by pretending that numerous dependents live with them ...  

They are not cheating us out of money.  By getting a refund, they are receiving their own hard earned money back from the governement who withheld it.  This is typical of the MSM who claim the government is "loosing" money by giving tax breaks... ITS NOT THEIR MONEY.

Taint Boil's picture




They pay SS tax, property tax, sales tax,  ....... 7 billion $ paid by illegals to SS that is never claimed. I could go on and on.


American-born children of undocumented immigrants are eligible for benefits like Medicaid and food stamps. But it’s important to remember that the recipients of these benefits are children that the 14th Amendment has deemed full citizens of United States.


 Low-income women with children under 5 are also eligible for WIC benefits regardless of immigration status – so what, they’re just kids.


At the federal level, some researchers believe that undocumented immigrants pay in more than they take out due to large and automatic contributions to Social Security that can never be claimed


Here is a good link about it.



Joseph Jones's picture

About $115 per diem average to house felons.  Illegal alien felony population is about 5x their number in the general population and an absolutely huge ratio compared to the general population.  (When you report to the PD an unwelcome intruder found in your home, do you describe the intruder as an "undocumented" visitor? I didn't think so.)

I wonder if surviving family members of persons murdered by illegals, and women raped by illegals, feel charitible toward them.    


knightowl77's picture

Most of the illegals that I knew worked for CASH and paid no income taxes. They also got welfare, section 8 and other forms of assistance. BTW most of the ones I know are Visa overstays not border crossers, but the same is true for the border crossers....

No one should get back MORE than they pay in firstly.........Everyone should pay in a minimum amount, but having said that, the Federal Gov't spends way TOOOOO Much Money and Taxes on the middle class are TOO High....IMHO

Getting Old Sucks's picture

You're gonna flame me for this but I'm working on becoming one of the 50% of Americans who don't pay any income taxes.  Not there yet but will be when I draw down my IRA.  My little revolution, and smiling as I type this.

SmittyinLA's picture

Funny how people think they "safe" when they retire like they're in a game of tag with their friends.

Attention people, if you're 95 years old and on SS & medicare you're not "safe" from benefit cuts.   

Got that?

Our govt is betting on the  young alien vote to screw over the boomers, they've already counted the votes....and will fix any discrepancies (if needed).

Getting Old Sucks's picture

Haven't started SS yet.  Better get right on it though before those Mexicans vote to deprive me of it. 

Dr. No's picture

I applaud you.  You are on the path to achiving what we all want.

Clowns on Acid's picture

Best case for a Flat tax.....oh yeh...enforce te immigration laws ...good work GW !

pacu44's picture

Only if that FLAT TAX is 0.


taxing profits, yes,

taxing wages, no

I will not abandon the American Revolution

overmedicatedundersexed's picture

Why You Pay Too Much In Taxes? well george It's because I fear the IRS man.

GeezerGeek's picture

Whether or not different groups are overtaxed or undertaxed is, from my perspective, almost irrelevant. Put simply, the US government (and most other levels under that one) spends too much money on things it should not be involved in. Starve the beast.

Spending is high to enrich and empower the elites within and outside of the government. They are two sides of the same monster. The byproduct is a terminally weakened middle class. All is going according to the globalists' plans.

CH1's picture

The byproduct is a terminally weakened middle class.

Agreed, though I prefer to call them the Productive Class.

The state squeezes them dry - always - while praising them and promising to "do more for them."

It's all bullshit: The state takes your money by force. Then they demand that you call the exchange righteous.

Talk about a mind-warp...

Marley's picture

It's called class warfare.

“the New Spirit of the Age, Gain Wealth forgetting all but Self.”


Oldwood's picture

Living in Texas and working in the construction industry for 30 years, I have NEVER heard of an Hispanic business, much less illegal being audited. 25 years ago illegals were primarily working for legal business entities, but not now. Today we are seeing hispanic owned and run businesses everywhere. Many are driving big shiney duallies with all hispanic crews. Many operate using false Fed employment ID numbers, paying their employees in cash, many times as subcontractors and if or when the IRS might coming looking they just disappear, opening the next day with a new fake number. Even if the IRS lack of action is not deliberate, the illegals are just too much trouble to track down, especially when people such as myself are setting here just begging for it. The political correct nature of government will prevent any reform or accountability, just as any criticism of Obama is racist.

ebworthen's picture

There are many Chinese who move here, open a restaurant, make a bunch of money.

They are here illegally, but no one asks any questions - ever.

srydstedt's picture

You are one person in Texas.  There are 25.67 MILLION people in Texas.  Your personal observations count for nil.

Why they count for ... well, actually, they are worse than nothing.

You need some statistics, or cite some source, not some "Once upon a time in Texas..." story.

Anecdotal observations are the worst kind.  They pass through a human filter called "confirmation bias".  A person sees what confirms what they already want to believe, such as Hispanics are getting away with something.  How much? Dollar-wise? You have zero idea.  Then toss in some 'idea" about the POTUS.  Another confirmation bias story.

The first principle is that you must not fool yourself and you are the easiest person to fool.
Richard P. Feynman

Marley's picture

4 now.  You're goin' to find that you won't get much of an intelligent discourse here.  Use to be a better comment crowd so avoid the comments other than for amazement.  In general, come for the articles, read through Bircher lenses, downshift to 3rd or 2nd gear, then understand the modivation. You'll find some tid bits of good information.

Oldwood's picture

And statistics, especially from government, have never fooled anyone, right? How the hell do you think we got to where we are today? We have been doing everything our government has been telling us to do. Buy, borrow and spend. Save the economy through consumption. You are an idiot if you are willing to believe in statistics being fed to you rather than what you see with your own eyes. How are you going to get accurate statistics on illegals? That is the whole point...they aren't on the books. We don't know how many vote or pay no taxes, because you can't poll a non respondent. And I seriously doubt that the IRS would publish any data that confirms they are not auditing or pursuing illegal alien tax cheats. It sounds to me that you are the easiest to fool as you would rather cling to your progressive belief system than acknowledge what has and is occurring all around you. You surely must think me totally stupid to suggest that i can watch this destroying the industry i participate in every day and still be able to delude myself in some racist fog. Wages in construction in Dallas have not increased a dime in thirty years. I still have people seeking work for ten dollars an hour which is the same as they were asking in 1979. An industry which was "anecdotally" about 70% white in 79 is at about 95% hispanic today. Yes they are hard working and willing to work for less but they also claim multiple dependents (many times falsely) and rely on public healthcare and multiple welfare programs. Our government has been willing to subsidize them at a direct cost to everyone else, and especially those in the industries that they dominate, like construction. No contractor can resist the economic pressures to hire illegals. Most wood shops now require you to speak spanish to get a job. With Illegal contractors willing to pay cash they have an immediate 15% wage advantage over legal employers. Home owners don't typically file 1099's on remodel work so these contractors don't worry about much as they are completely off the books as far as the IRS is concerned. While government will never admit to screwing us over, much less provide statistics to prove it, they will still, joyfully, proclaim that our economic mess is due to the unbridled greed of business....so I guess we are responsible for creating something all by ourselves after all!

Offthebeach's picture

Same in Mass and Florida where I work and Connecticut that I know of. Why? Because I and all I deal with are off the books. We've joined the illegals. Just like bad money drives out good, we've adapted to the competition and dropped obedient costly behavior.

Gresham 's Law

Western's picture

Hi there LowProfile, I will come for you one day.

BeetleBailey's picture

"How much? Dollar-wise? You have zero idea"

YOU don't either motherfucker.

Old was telling it like it is - from his own experience - not some cheese-dicked douchebag government asshole's report from a blatantly fucked up system of "data".

Oh, and the POTUS Obamacunt? He's a LYING little cunt, that cannot stand on his on two lying feet. Fuck that he's "black" (and he isn't "black" - he's ARAB/WHITE - in case anyone is too lazy to check out his parents Birth God Damned Certificates - (fuckin DUH) - and he goes around asking for black support "Afro-American"....so blow me with your Richard Feyman shit...

Seems like you need to heed what you preach to others - because you're fooled - fool.

harleyjohn45's picture

You need some numbers, 17 to 1 thinks you are full of shit.

Getting Old Sucks's picture

A member for 8 days and looking for recruits to your progressive cause?  Take a walk asshole.