H.R.3715 - New Illegal Deduction Elimination Act; New IDEA Act (119th Congress)
Summary
H.R.3715, the New Illegal Deduction Elimination Act or New IDEA Act, aims to amend the Internal Revenue Code of 1986 to prevent businesses from deducting wages paid to unauthorized aliens from their gross income. It also seeks to make the E-Verify program permanent and expand its application. The bill includes provisions for information sharing between agencies to identify unauthorized aliens and enhances enforcement mechanisms.
Expected Effects
If enacted, this bill would likely increase the cost of employing unauthorized aliens, potentially leading to a decrease in their employment. It could also increase scrutiny on businesses and require them to more diligently verify the employment eligibility of their workers. The E-Verify program would become a permanent tool for employers.
Potential Benefits
- May reduce incentives for businesses to hire unauthorized workers.
- Could lead to increased employment opportunities for legal residents and citizens.
- Potentially increases tax revenue by disallowing deductions.
- Strengthens enforcement of immigration laws related to employment.
- Provides a 'safe harbor' for businesses using E-Verify in good faith.
Most Benefited Areas:
Potential Disadvantages
- Could increase compliance costs for businesses, especially those in industries that rely heavily on immigrant labor.
- May lead to discrimination if E-Verify is not implemented carefully.
- Potential for increased audits and investigations of businesses.
- Could negatively impact the economy if businesses are unable to find sufficient legal labor.
- May create a shadow economy where unauthorized workers are paid off the books.
Constitutional Alignment
The bill's alignment with the Constitution is complex. Congress has the power to lay and collect taxes (Article I, Section 8, Clause 1) and to regulate commerce with foreign nations (Article I, Section 8, Clause 3), which could justify the tax-related provisions. However, some may argue that the bill infringes on individual liberties or equal protection if it leads to discriminatory practices. The expansion of E-Verify and information sharing raises potential privacy concerns, though the bill includes provisions intended to limit audits.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).