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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: saveslivesbyday who wrote (204998)5/29/2009 3:58:13 PM
From: anachronistRead Replies (1) of 306849
 
Illegal workers pay a lot of taxes in California. First, they pay sales tax, because no one can avoid that. Sales tax is a HUGE revenue generator in CA, especially at the local level. Next they pay a lot of payroll taxes as well. They simply use someone else's SSN or tax ID and the funds are withheld from their paycheck by the franchise tax board. Employers of illegal immigrants can get in a lot of hot water if they don't withold income taxes, and since no one will claim them on a tax return, the state simply keeps them. On a national level, illegal immigrants similarly fund Social Security and Medicare benefits that they will never collect, not to mention federal income tax.

Of course, since they earn what a lot of us consider poverty wages, their marginal tax rate is low. And although a surprising number are payroll employees, many are in cash only jobs and therefore avoid payroll taxes altogether. But the supposition that all illegal immigrants pay no taxes is wrong.
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