The bipartisan US immigration Bill has brought many immigrant tax issues to the centre stage. The implications of US Immigration tax Laws have stoked a raging debate over undocumented residents getting citizenships in a fluke. That is why opponents of the bill are seething that it is a gift for lawbreakers and outright “amnesty”.
But what makes the bill stand out is its insistence on making all aliens tax complaints. The Bill proposes settling immigration tax liabilities by the illegal immigrants before being put into the orbit of graduate citizenship in 10 to 12 years.
In a span of 10 years, while preparing the illegal immigrants for citizenship with back taxes and provisional status to green card and regular employment in the U.S, the new Bill underscores making illegal immigrants tax compliant as a basis for mainstreaming. This targets mainly those who entered the USA illegally before December31, 2011. They have to pass a criminal check and pay back taxes to get a provisional status.
There are about 11 million illegal immigrants waiting immediate amnesty and being placed on a path to citizenship. The Senate proposal marks Democrats and Republicans to allow immigrants pay at least $2,000 in fines and immigration tax to meet other valid criteria for citizenship. The Republican members harp more on border security control before the more undocumented people cross over to become citizens.
The premise of the Bill seeks to give an economic advantage colour with the proposed assimilation programme. US immigration tax laws are tough yet a humane way in the present circumstances. Interestingly the immigration issue also gives Republicans an opportunity to reconnect with Hispanic voters. The 71 percent vote share taken by President Barack Obama in his second time cannot be ignored. Fortunately a climate of consensus is unfolding—around two-thirds of Americans want a citizenship path for the illegal immigrants than harsh deportation.
The immigration rules of the United States are always conjoined to its tax structure. In a way the immigration in USA is merit driven and looks at a person’s ingenuity to contribute to the economy by way of skills, knowledge and entrepreneurship. Therefore those seeking U.S. immigration must know rules of taxation affecting different types of immigrants’ especially undocumented aliens.
Under the provisions of the new Immigration Reform Bill the immigration tax laws will be sharpened to absorb the illegal immigrants numbering 11 million into a pathway of citizenship by way of more back taxes and the addition of more taxpayers to the tax base. This will progressively offset any wasteful expenditure at the social security front in a few years.
Tax Laws and Citizenship
The treatment of aliens under the internal revenue and social security laws of the United States is contingent on the status of aliens under the immigration laws of the United States. The immigration laws classify aliens into three:
Immigrants can reside permanently in the United States and get the green card. The green card holder can enter and leave the United States without a visa or re-entry permits at will and earn income in the United States. citizen.
Back Tax Issues
Under the new Immigration Bill citizenship for 11 million undocumented immigrants would be a long drawn process with tax tests.
- Gaining Provisional legal status after passing background checks and paying back taxes
- Applying for green cards after PLS in 10 years
- Applying for citizenship three years into getting green cards
In tax matters, the tax laws speak of only resident aliens and nonresident aliens. While resident aliens are taxed as U.S. citizens nonresident aliens are taxed as per the Internal Revenue Code.