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Stop This Corporate Scandal Now
Townhall.com ^ | April 13, 2005 | Terence Jeffrey

Posted on 04/13/2005 1:44:02 PM PDT by HonestConservative

Stop this corporate scandal now

Terence Jeffrey

April 13, 2005

There is a scandal unfolding in corporate America that President Bush needs to stop, given that fixing Social Security is his top domestic goal and securing the nation against terrorism is his greatest duty.

The scandal is happening precisely where Social Security and national security intersect.

The question it raises: Is the administration tolerating an increased risk of terrorism because it doesn't want to stop big businesses from hiring illegal aliens?

Key facts of this scandal were revealed in an October report from the Inspector General of the Social Security Administration (SSA). The report examines the records of the 100 companies that filed the most W-2 reports from 1997-2001 on which the names and/or Social Security Numbers did not match SSA records and that SSA -- even after some investigation -- could not credit to a known taxpayer.

SSA consigns these orphaned W-2s to what it calls the Earnings Suspense File (ESF). The "Top 100" worst filers of W-2s that ended up in the ESF, the inspector general discovered, collectively filed more than 2.7 million of these bad W-2s over the five years studied, reporting about $9.6 billion in wages that could not be matched to a worker.

The report does not name these "Top 100" companies. But it provides some details about them. For, example:

-- The No. 1 corporate filer of orphaned W-2s is based in Illinois. From 1997-2001, it filed 131,991 of these W-2s, reporting $524,933,538 in wages that the government could not credit to a known taxpayer.

-- A Texas company was No. 2. It filed 108,302 orphaned W-2s over five years, reporting $532,964,026 in wages paid to unknown workers.

-- The problem got worse. "Our review of the Top 100 employer data also found that the average increase in suspended wage items between tax years 1997 and 2001 was approximately 69 percent," said the report.

Now, this is an obvious scandal for Social Security. Workers with higher reported wages get bigger benefit checks in retirement. But as long as the $9.6 billion in wages reported by the "Top 100" companies on bad W-2s remains unmatched to any taxpayer, the taxpayers who earned those wages and paid taxes on them may be denied their full Social Security benefits.

These workers -- provided they were legally entitled to work in the United States -- are getting ripped off.

Even if national security were not involved, that alone should cause President Bush to act.

But testifying before the Senate Intelligence Committee in February, Deputy Homeland Security Secretary James Loy said Al Qaeda leaders have considered infiltrating terrorists across the Mexican border because they "believe illegal entry is more advantageous than legal entry for operational security reasons."

Citing "the threat from criminal groups and persons who engage in criminal enterprise that supports or contributes to terrorism," Loy listed as examples "people smuggling ... document forgery and false identity provision."

Illegal aliens sneaking into the United States to commit terrorism need the same criminal services as illegal aliens sneaking into the United States to work. Mass illegal immigration -- and corporations that encourage it by hiring masses of illegal aliens -- have created an inland sea of lawlessness in which terrorist sharks can readily swim.

In fact, on June 25, 2002, following an SSA examination of the identities used by the Sept. 11, 2001 hijackers, then-SSA Inspector General James G. Huse Jr. told the House Subcommittee on Crime that the hijackers used, among others, five counterfeit SSNs and one belonging to a child.

"Because a terrorist, to be effective, must first be assimilated into American society, and because an SSN is a critical tool in the assimilation, it became apparent that the acquisition of an SSN was indispensable," said Huse.

On Sept. 19, 2002, Huse told the House Immigration Subcommittee: "Protecting the integrity of that identifier (the Social Security Number) is as important to our homeland security as any border patrol or airport screening."

Before Sept. 11, we had little warning. Now we've had plenty.

To make terrorist sharks easier to spot and capture, the government must drain their habitat -- and it can start by pulling the plug on a policy that looks the other way when businesses hire illegal aliens.

Huse told the Immigration Subcommittee: "Our reviews of the suspended wages in the ESF suggest that illegal work is the primary cause of suspended wages."

If illegal work is the "primary cause" W-2s end up in the ESF, isn't it reasonable to suspect that companies filing large numbers of these W-2s may be hiring large numbers of illegal workers?

House Judiciary Chairman James Sensenbrenner told me last month the Department of Homeland Security should investigate these companies to find out if that is the case.

Make it happen, Mr. President.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Foreign Affairs; Government
KEYWORDS: borders; illegals; immigration; nationalsecurity; socialsecurity; taxes; taxpayer; terencejeffrey; terrorism
If business didn't hire Illegals, there would be no incentive to cross the border.
1 posted on 04/13/2005 1:44:04 PM PDT by HonestConservative
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To: HonestConservative
I guess W voted for Pedro
2 posted on 04/13/2005 1:47:05 PM PDT by Rakkasan1 (The MRS wanted to go to an expensive place to eat so I took her to the gas station.)
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To: HonestConservative

El bumpo, senor.


3 posted on 04/13/2005 1:52:18 PM PDT by TBP
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To: HonestConservative

We really need to come down HARD on businesses that hire illegals, slapping their officers with large jail time and the companies with huge fines, while at the same time deporting as many illegals as we can find, making all aliens register (even Mork from Ork), and increasing teh Border Protection Service and National Guard to seal our borders just as tightly as possible.

Once all that is done, if the President wants a guest worker program with extremely strict monitoring, then we can talk about it. But not until then.


4 posted on 04/13/2005 1:54:46 PM PDT by TBP
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To: TBP

"slapping their officers with large jail time and the companies with huge fines"

Gasp...then who will fund all of our politicians' re-election campaigns?


5 posted on 04/13/2005 1:58:10 PM PDT by RepublicMan4U
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To: HonestConservative
Why doesn't the Social Security Administration simply require business to either prove that these unmatched numbers are from a legal resident or fire the worker and report them to Homeland Security?
6 posted on 04/13/2005 1:58:13 PM PDT by Desron13
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To: HonestConservative
From personal experience, Businessmem are frustrated in finding out if a SSN is valid. Long delays, bureacratic foot dragging. Illegals just make up numbers. No one will find out for at least two years. http://www.socialsecurity.gov/oig/hotline/index.htm SSA OIG HOTLINE CONTACT INFORMATION EMAIL: Fraud Reporting Form If you send an allegation via email, please provide your name, telephone number and address. MAIL: SSA FRAUD HOTLINE PO BOX 17768 BALTIMORE, MD 21235 FAX: 410-597-0118 CALL: 1-800-269-0271 Hours of operation: 10:00 a.m. to 4:00 p.m. Eastern Standard Time TTY: 1-866-501-2101 If you are deaf or hard of hearing, you may call our TTY number. Guidelines for Reporting Fraud The SSA OIG Fraud Hotline is a clearinghouse for receiving and handling allegations regarding violations of law or regulations affecting Social Security Administration (SSA) programs and operations. Examples of violations include: Criminal activity such as: False statements on claims Concealment of material facts or events affecting eligibility Misuse of benefits by a representative payee Buying or selling Social Security cards or SSA information SSN misuse involving people with links to terrorist groups or activities
7 posted on 04/13/2005 2:02:39 PM PDT by Ramonan (Honor does not go out of style.)
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To: HonestConservative

Hey, business should be able to hire and fire whoever they please! Well, that's what you'll hear if you talk about smoker's being fired for smoking off the job.

http://www.freerepublic.com/focus/f-news/1383121/posts


8 posted on 04/13/2005 2:10:51 PM PDT by MisterRepublican
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To: Rakkasan1

bump


9 posted on 04/13/2005 2:16:01 PM PDT by tom paine 2
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To: Ramonan
A good background check would reveal much. How long they were at previous jobs for instance. Simply making a few phone calls to see who knows who and for how long.

Although I buy that finding out if a SSN number is valid could be difficult. A Simple credit check would also reveal alot.

I don't think these business' with millions of dollars of salaries being paid out every year with no discernable identity attached to them have any doubt as to why this is happening and this tells the story. Wonder what the average income of these annual salary totals is? Betcha it ain't 100,000 a year. These are going to be very low salary jobs and therein lies the motive. Best regards
10 posted on 04/13/2005 2:26:15 PM PDT by HonestConservative (Bless our Servicemen!)
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To: Desron13
As a employer let me explain how the system works. I hire an employee, and ask for all documentation. It all looks right so I hire. Say this is February. The worker works, and I make tax deposits all year.

The tax deposits are not reported with a SS# until W2's are generated in January of the next year. Then sometime in March or April (that is over a year since I hired) I get a notice that something doesn't match.

This is not only a game illegals play but also escaped cons.
11 posted on 04/13/2005 2:28:37 PM PDT by helper
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To: helper

"As a employer let me explain how the system works. I hire an employee, and ask for all documentation. It all looks right so I hire."

Not much checking going on here.

Can you really say you were trying?


12 posted on 04/13/2005 2:42:43 PM PDT by HonestConservative (Bless our Servicemen!)
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To: HonestConservative; helper
Not much checking going on here.

Can you really say you were trying?

You presume that employers should spend considerable time and extra money, going to some length to authenticate the documents of their employees?

What if you're in the contracting trades and you're hiring somebody to work concrete, roofing, etc., on a specific job.

It would make no sense. You do what you have to do: collect the SSN, deduct the withholding, make the deposits and issue the W-2s.

If the government wants the SSN to be authenticated, it's up to them to provide the channels for doing so. Currently, that doesn't exist.

13 posted on 04/13/2005 3:39:36 PM PDT by okie01 (A slavering moron and proud member of the lynch mob, cleaning the Augean stables of MSM since 1998.)
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To: okie01

Understood.

Yes, the system is set up so that abuse is not only possible, but invited. SS cards need to be modernized so that they are not transferable between persons.

And yes it is a constitutional responsibility of our federal government to seal our border and protect our people from invasion. Our so called leaders are breaking their oaths of office in this regard without question.

We have been sold out.

But currently, business and government entities have a conveniently turned a blind eye to hire laborers who are illegal, to the advantage of their bottom line. Once an employer becomes aware that he has inadvertantly hired illegals, the question becomes what is his MORAL duty at that point.

Best Regards,


14 posted on 04/13/2005 3:54:29 PM PDT by HonestConservative (Bless our Servicemen!)
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Comment #15 Removed by Moderator

Comment #16 Removed by Moderator

Comment #17 Removed by Moderator

To: Uleryrns
Why is NOTHING being done about this issue?

Silly. Nothing is being done because the ruling class WANTS open borders. What We The People want simply doesn't count anymore.

18 posted on 04/13/2005 5:04:54 PM PDT by Chuckster ("Silence is not golden. It is yellow" Senator Zell Miller)
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To: HonestConservative; okie01
Thanks okie, I see you also know how the system works, few do.

Let me make a few more points.

I lost my SS paper SS card 25 years ago, but I clearly remember the statement "not to be used for identification" printed on it.

I copy all documents employees submit, however it is a FEDERAL OFFENSE TO COPY A "GREEN CARD"

Now do I prove to the Govt that I did due diligence and show that I committed a FEDERAL OFFENSE.

I have NO enforcement authority. If you want this system to work like it should get on your Senator & Rep. not me.

BTW if I fire a legally documented worked because I SUSPECT false papers I'll have John Edwards on my doorstep.

Yep but the system is politically correct
19 posted on 04/13/2005 6:10:00 PM PDT by helper
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