The United States has long been a land of opportunity, attracting individuals from around the world seeking to build a better life.

Addressing the reality of unauthorized migrant labor, this proposal suggests a pragmatic policy allowing migrants to visit and work legally in the U.S. while imposing a flat 30% withholding tax on their income. This revenue would be earmarked for critical social programs benefiting the poor, healthcare initiatives, widows, teachers, and orphans.

In reality, any worker who goes to China, Mexico, or  the UAE for instance, must pay large visa fees each year and get clearance to have a job or be employed. To level the playing field and fund government services, the U.S. government should allow anyone with a clean record to come to the USA and work temporarily without a VISA, but going forward, visitors should pay the 30% tax withholding rate.  As former President Obama once said in Marxist-socialist terms, any tax rate is OK as long as the services and benefits are commensurate with the tax rate.

Presently, each new child introduced into the US economy costs the US government about $800,000 to$1 Million  dollars to subsidize from age 0-18 years old. The same person may only pay an average of $530,000 in taxed during their lifetime which is not enough to cover the investment outlay.

As a note, the typical American worker already pays about 25% in local taxes on sales tax, rent tax, services taxes, state and city taxes. Thus, it is only fair for visitors to contribute the same or more in taxes than citizens.

Legal Framework for Migrant Work

Unauthorized migrants often work in the U.S. economy despite legal barriers, contributing significantly to industries such as agriculture, construction, and hospitality. Current policies largely criminalize unauthorized work that undercuts citizens from earning income and paying taxes, leading to an informal labor market that is neither regulated nor taxed. An innovative system with greater equanimity could transform this reality into a win-win situation for both migrants and the American public.

Under this proposed system, unauthorized migrants would register online in their chosen language with the Internal Revenue Service (IRS) to obtain a provisional work and tax permit. They would then be allowed to work legally, paying a flat 30% withholdings tax on their earnings. This is about the same as regular citizens pay already.

This policy could provide a dual benefit: boosting tax revenues for public assistance programs and reducing exploitation in the labor market.  If the immigrant family does not work, then they will need to go home as there are 20 million in the USA that have food insecurity each day and the existing system is unsustainable without workers and productivity.

Allocation of the Migrant Work Tax

The revenue from the 30% flat tax would directly support the following programs:

1. Poverty Alleviation: Funds would go toward existing social safety nets, SNAP programs, including housing assistance and food programs for low-income families.
2. : Additional funding could bolster Medicare, Medicaid, and other public health initiatives, improving access for underprivileged communities while supporting reimbursements for sustainability of local health care systems.
3. Support for Widows and Orphans: Allocating funds to programs like the Social Security survivors’ benefits could provide stability to those who have lost a primary breadwinner.
4. : Teachers and educational institutions could benefit from increased funding, addressing teacher shortages and improving classroom resources.
5. Child Welfare: Enhanced funding for foster care and child support systems would directly benefit orphans and vulnerable children.
6. Food for Citizens: The SNAP program can be funded by the taxes and visa fees paid by citizens.
7. Education Sustainability – Local schools are unsustainable without tax dollars being collected from the families of children in school.

This targeted allocation ensures that the benefits of migrant labor extend to some of the nation’s most vulnerable populations, fostering a sense of shared prosperity.

Economic and Ethical Rationale

Allowing migrants to work legally while taxing their income acknowledges their contribution to the U.S. economy. Migrants already play a pivotal role in many essential industries, often performing jobs that U.S. citizens are reluctant to take.

Legalizing their labor could improve working conditions, reduce labor market exploitation, and generate billions in tax revenue. Further, the Coyotes would need not be paid, and the “human trafficking” extortion could be eliminated with a strong border and mandatory taxes.

Ethically, this approach aligns with the principle of mutual benefit. By allowing migrants to contribute formally, the system recognizes their humanity and economic value while ensuring that their work benefits broader societal goals. As Professor Michael Clemens of the Center for Global Development speculates, “Inclusive migration policies can lead to economic gains for both migrants and the countries that host them” (Clemens, 2021); however, Clemens does not calculate the impact on jobs and inflation for citizens already here nor for the inflation hitting women and minorities created by introducing millions of new “non-citizens” buyers in a labor market.

Implementation Challenges and Solutions

Opponents may argue that such a policy could encourage illegal immigration but it seems to work in “sustainable immigration oriented economies” such as the UAE, China and Mexico. However, a robust registration system combined with stringent border enforcement could mitigate this risk. Additionally, implementing severe penalties for “migratory employers who fail to comply with the tax requirements would ensure adherence to the new framework.

Conclusion

Vast numbers of nations make billions each year from selling Visas and even passports to the wealthy.  A system that allows unauthorized migrants to work legally, subject to a flat 30% tax, represents a compassionate yet pragmatic approach to an ongoing issue. You can call it a “Golden Visa Tax” where the aspirant pays as she goes a fair fee for benefits.

Global Revenue from Golden Visas and VIP Passports:

• Malta: The Malta Individual Investor Programme (IIP), launched in 2014, has been notably lucrative. Within 18 months of its launch, the program raised over $1 billion. Wikipedia
• Cyprus: Cyprus's citizenship-by-investment program generated billions in recent years.
• St. Kitts and Nevis: The citizenship-by-investment program in St. Kitts and Nevis has been a significant contributor to the country's economy, with the program helping the nation recover from a four-year recession and contributing to 13% of the country's GDP and 40% of government revenue.  Wikipedia
• Greece: In the first half of 2023, Greece's real estate golden visa program reported revenues exceeding €1 billion, marking its most lucrative year.  Uglobal
• Portugal: Portugal's Golden Visa program has been a significant source of foreign direct investment, contributing more than 14% of FDI between 2013 and 2019.  Reuters

 By directing the revenue toward education, teachers, essential health care workers, peace officers, and local social programs, this policy could strengthen the social fabric of the nation while respecting the contributions of migrant workers.

This bold reimagining of labor and immigration policy could pave the way for a more inclusive and economically resilient America. The average American pays about 40-50% in federal and SALT taxes plus sales tax, luxury taxes, service fees etc.  Thus, asking immigrants to pay a flat %30 percent withholding would level the playing field and allow working immigrants to support the local unemployed, the hungry, the sick, and the poor and disadvantaged within the USA.

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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.Mentzenborg is just a term of art to describe the theory and process by George Mentz JD MBA ChE. CWM is for Chartered Wealth Manager ® and ChE Chartered Economist ® is a credential for economics professionals.

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