by John Koraska

March 25, 2005,  Revised October 15, 2005

 

For Social Security updates please visit my new website US Public Policy

 

The issues of the Earned Income Tax Credit, Illegal Immigration and Minimum Wage were combined because of their interrelationships.

 

Earned Income Tax Credit

 

The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC) is a federal credit for qualified low-to-moderate income workers earning less than $35,458 per year (2004). Qualified families with one or more children may receive up to $4,300 in refundable credits. Getting the credit is easy. Just file a tax return and fill out Schedule EIC to claim the credit.  This is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

 

In 2004, more than 22 million taxpayers collected more than $41 billion in EITC payments. Statistics reveal the average EITC check is $1863.63 per claimant. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments. IETC claimants may also qualify for the "Child Tax Credit". http://www.irs.gov/individuals/article/0,,id=96466,00.html

 

The real question is: "Should a government (from public coffers and unable to pay its own bills) subsidize employers by providing direct payments to employees, to supply the difference between minimum wage and a living wage?" If the answer is "No", it would appear the obvious answer is to raise "Minimum Wage" to a level whereby the subsidy is no longer necessary. It is ludicrous for the federal government to BORROW billions of dollars to subsidize business. The unfettered drive by the government to continue to build up unsustainable, perpetual debt would be laughable if it were their money. But, it is NOT their money. Current and future taxpayers are on the hook to eventually pick up the tab. Foreigners picked up the tab last year by buying 399 billion dollars worth of government paper. What happens when they STOP? As Interest comes due on government IOUs in Social Security (and other) Trust (Slush) Funds, the fed's just put in some more IOUs, the real cash gets spent. Does anyone think that foreign bankers will continue to put up with this nonsense? 

 

Illegal Aliens

 

While the US deploys forces around the world on crusades against "Evil", our own borders leak like a sieve. A recent review of government data by the Pew Hispanic Center puts the number of illegal immigrants in the U.S. as of March 2004 at 10.3 million, up 23% from an estimated 8.4 million in 2000. Pew estimates the number is now about 11 million, about 30% of the U.S. foreign-born population with a steady annual inflow of about 485,000. While Congress squabbles, the INVASION continues unabated. The government is not doing its job and they should be held accountable. The overwhelming majority of Americans want our borders protected, they want illegal aliens brought under control and/or expelled and they want action NOW! THE GOVERNMENT ISN'T LISTENING!

 

The PRIMARY CONSTITUTIONAL RESPONSIBILITY of the federal government is to defend this country and to repel INVASIONS. U.S. Constitution Article IV Section 4. The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion; Article I Section 10.... No state shall, engage in war, unless actually invaded...(I think this means if the federal government doesn't do its job, the States have the Constitutional authority to repel invasions of their respective States).

 

Texas is a free and independent State, subject only to the Constitution of the United States... The Governor of Texas shall be Commander-in-Chief of the military forces of the State, except when they are called into actual service of the United States. He shall have power to call forth the militia to execute the laws of the State, to suppress insurrections, and to repel invasions. (Amended Nov. 2, 1999.)

 

Article. VI. Clause 3: The Senators and Representatives before mentioned, and the Members of the several State Legislatures, and all executive and judicial Officers, both of the United States and of the several States, shall be bound by Oath or Affirmation, to: support this Constitution;....Article. II. Section. 1. Clause 8: Before he enter on the Execution of his Office, he (The President of U.S.) shall take the following Oath or Affirmation:--"I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States."

 

Minimum Wage OR Living Wage?

 

(No US worker should be deprived of a job that pays a Living Wage because of competition by illegal aliens!) This ILLEGAL COMPETITION would not exist if the federal government was doing the job its leaders are constitutionally bound to do. It may be just a matter of time before the working poor join in a class action lawsuit against the federal government for dereliction of duty and by neglect (in safe guarding the borders) have contributed directly to the detriment of their bargaining position.

 

The US Congress have given themselves cumulative pay raises that are more than twice the current minimum wage of $5.15 per hour ($10712 - annual pay) since 1996, the last time minimum wages were increased.

 

The illegal residency and invasion of illegal aliens in this country undeniably provide employers an unjust advantage over employees. Expulsion of illegal workers would provide a more even balance in negotiations between US low-paid workers and their employers if immigration laws were enforced. Competition for sweat labor among US employers would undoubtedly result in significant pay increases to induce American workers to accept work they currently are reluctant to do (or resent doing) for wages below the cost of living. Sweat labor would undoubtedly become more attractive to millions of American Workers with increased pay. Absence of illegal aliens would level the competitive playing field between employees and employers. The higher pay among millions of workers would REDUCE WELFARE COST by inestimable TEN(s) of BILLIONS of DOLLARS. This transition would also increase government revenues (thus reducing the deficits) and spread the distribution of wealth more equally between rich and poor.

 

The government's benign neglect of protecting our borders produces severe hardship on the poorest of Americans and forces welfare costs such as the Earned Income Tax Credit to skyrocket. Education, medical and other services provided to the aliens are destroying budgets of the towns and cities throughout the country. Federal law requires needed services be provided; but isn't willing to pay for them. Again, THE GOVERNMENT ISN'T LISTENING!

 

Perhaps a WORKERS' CLASS ACTION SUIT will FORCE the CONGRESS and the EXECUTIVE Branches of GOVERNMENT to LISTEN to their just complaints OR have the courts intervene on their behalf.

 

 Note: I would personally contribute to such an effort based on merit. The amusement value of watching the political jockeying on such an issue would provide its own reward! If nothing else, we might learn if the "Courts" are as obliging to corporate and other interest groups as their political counterparts.

 

Earned Income Tax Credit, Illegal Aliens

 and Minimum Wage (Art#12)