The reason it is a sham is because there is no real enforcement provisions to police this thing and basic economics dictates that employers will try to subvert the system to get cheaper labor since these new "guests" will not be so cheap once on the books. The "guests" will not be happy since they will be getting a pay cut in the form of FICA, etc.
The illegals who are here don't want to be legal in the sense that you are if it means that they will not be able to continue the scam.
Here is how the scam goes, I know this from personal knowledge (not because I did it!), a contractor bids on a public job, say for a school or something.
The bids are based upon the contractor paying prevailing wages or union wages. The money allocated for that project takes this in to account. Let's say the low bidder wins with a bid of $50,000.00. The usual industry standard is 20% profit and overhead, the rest being labor and materials. So now, the labor is supposed to cost around $40,000.00 by paying the men prevailing wage. By the way, part of winning the bid is that you certify to pay the men prevailing wage.
The contractor never intends to pay prevailing wage. What he does is get illegals to work 8-10 per hour where the wage rate should be say 35-40 per hour. Do you see how the employers get rich off this now???????
The illegals love it because they get cash which is easy to wire home and no taxes are taken out. The employer loves it even moreso since now his worker's comp liability is less because he is only declaring part of the salaries being paid out.
They then falsify the certified payroll or claim to havepaid the wages and tell the illegals if they say a word they will get no more work. Since most of them are only here for the season or don't care, they keep quiet out of fear for being deported and the cash flow ceasing.
If they don't seal the border and impose severe penalties agains the employers, we will have 12.5 million new illegals here in a few years since the scam since the employers will not be able to get away with this scam under the proposed bill and they, the employers, will just get new illegals to scam the system.
Did this make sense to you?
You are explaining the exception to the rule. Most businesses will get caught in such an easy scam. You are also talking about illegals with skills and not the average Manuel Mexical that makes up 75% of the illegals. These guys travel from job to job and are impossible to track which is why a guest worker card could track them.
So you are for the guest worker program if they enforce the laws after they install it? That sounds like a good starting point.
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