Undocumented Labor and Tax Deductions

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A major issue today is how to deal with illegal immigration. Illegal immigrants, that is, those individuals who entered the U.S. without legal authorization or who are violating the terms of their VISA’s are estimated by various reports to exceed 11,000,000 people. The undocumented worker is a political dividing line, and an economic issue. Assuming that there is a desire to reduce the size of the undocumented worker labor force, are the legal mechanisms today adequate for the job. Some commentators, say no and some say that immigration reform is the only solution. I wonder whether a change in the Internal Revenue Code to disallow the deduction for hiring undocumented or falsely documented workers would be of some deterrence value. This is only a question, but here is the issue.

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