SCR1

Federal Waiver to Establish an Employer-sponsored Work Program

There are at least four very serious problems with the Salt Lake Chamber of Commerce’s proposal that is the basis for SCR1.  These have gone unnoticed because of the lack of detailed attention paid to this Resolution by both citizens and legislators.

1.      The Salt Lake Chamber of Commerce’s proposal, as set out in the Resolution, appears to  make it less expensive to hire foreign workers than it does to hire American workers because it exempts employers from paying Social Security on foreign workers salaries (Lines 39-40, 60-62).  

                                          Social Security Cost     Health Insurance

Worker Category               ($25K Salary)              Cost                Total Cost        Savings

American Worker               $3,825                         $6,229[i]            $10,054           $       0

Foreign Worker                  $        0                        $6,229 $          $ 6,229            $3,825

2.      The Chamber proposal reduces the number of workers contributing to Social Security and Medicare.  This will lead to higher payroll taxes on American workers who will have to support a rapidly increasing number of Social Security and Medicare recipients as baby boomers retire and/or it will result in a reduction in benefits for those who are retired. 

3.      The Chamber proposal takes money out of the economy, depresses economic activity and reduces sales tax collections because foreign workers send a significant percentage of their earnings back to their home countries rather than spending them locally.

4.      The Chamber proposal is an amnesty plan because it ignores felonies committed by illegal aliens in order to obtain work including document fraud, perjury on I-9 forms and identity theft.  It also lets the 1,629 employers who paid wages to the social security numbers of thousands of Utah children off the hook.  Finally, it gives a pass to employers who knowingly hired illegal aliens and/or who failed to pay payroll taxes.