I'd like some thoughts on the following idea.. it gets complicated with our stance against the IRS and the Tax Code, obviously. My main objection is it would give ICE more authority and gives government more intrusion into business affairs.
Revocation of All Deductions, Credits and Subsidies - If any business is found to be hiring workers with no legal status, all expense deductions, tax credits and government subsidies are revoked. Tax liability is then adjusted accordingly without factoring these three elements that reduce liability. Companies violating this provision would be given one year to demonstrate that they have removed illegal workers and if they have been found not in compliance, the above revocations go into effect that next tax year. This is so business isn't entirely crippled by needing to respond immediately and allows time to transition their business model to hire legal workers. They would then be subject to random reviews up to 3-5 years.
Reporting Illegal Hiring Program - Could something not be modeled around the anti-piracy programs? With those, employees are given a way to anonymously report illegal piracy and if the offending company is found to have broken license agreements via piracy, the employee who reported the activity is given a monetary reward. I feel this could be adopted in illegal hiring practices too. Perhaps it comes as a tax credit?
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Employee reporting serves to identify violations, ICE follows up and imposes the 1 year probation period on violations and then conducts a review the next year. By cutting off employment opportunity, it should cause self-deportation. This avoids the government needing to deport millions of illegal immigrants by force, while also not accepting amnesty as the only option. The risk of paying full tax liability with no deductions, credits, or subsidies is aggressive enough to discourage these hiring practices, but also doesn't impose the penalty immediately and provides an "amnesty" period of 1 year for businesses to correct the violation.
IMO, it's more cost-effective than a wall and also removes most of the benefits of jumping the border in the first place.