Why It Works with Foreign Labor as an Industry
Classifying foreign labor as an industry lets us treat non-citizen labor as a distinct, taxable service. Corporations become "consumers" of this labor segment, liable for a usage tax akin to a sales tax on goods.
This simple approach uses existing tax systems, sidestepping the complexities of targeting individual workers or rewriting immigration laws. Join us in pushing for this critical shift to support American workers and bolster our economy for future generations.
Tax Advantages of This Approach
- Ease of Enforcement: Corporations can self-report foreign labor usage, with immigration and labor data cross-checked for accuracy. Non-compliance could trigger fines or loss of tax deductions.
- Revenue Generation: This targets major users of non-citizen labor—like tech and agricultural firms—without broadly disrupting smaller businesses.
- Corporate Accountability: Shifting the tax burden from workers to employers aligns with viewing labor as an industry where companies "purchase" services.
- Scalability: The tax rate or threshold can adjust yearly based on economic needs or immigration goals, discouraging over-reliance on non-citizen labor.
Implications of Viewing Foreign Labor as a Distinct Industry
- Tax Classification: Foreign labor activities could fall under a specific tax bracket, possibly with tailored rates or incentives for labor-heavy businesses.
- Deductions and Credits: Employers might earn tax deductions or credits for hiring, training, or providing benefits, encouraging workforce investment.
- Regulatory Framework: A formal structure could develop around labor practices, setting compliance rules that affect taxation and reporting.
- Impact on Employment: Tax shifts could nudge firms toward full-time hires over contractors, reshaping the labor market.
- Data Collection: Tax authorities could gather detailed labor data, guiding policies on wages, standards, and workforce development.
- Funding for Programs: Revenue from this classification could fund workforce training, unemployment benefits, and other social services.