Does your proposal require proof that the employee knew he was hiring illegals? i'm happy to put out of business employers who KNOWINGLY hire illegals.
But if we don't have the guts to institute a national ID card, it is hard for employers to know that a worker is illegal, if that worker has obtained forged social security cards and has legal or illegal driver license and other information.
Bush in the speech said that we can't make employers into immigration police, and I agree with that. If I run a mom-and-pop store, and need to hire someone, I don't want to be responsible for launching a criminal investigation first to prove that the person is legal.
Worse, if you force me to do that, I will likely only hire white people who speak perfect english -- and since there are millions of american citizens who don't meet that criteria, forcing employees to consider that option is a very bad thing in my opinion.
We need to control the border, to stop illegals, to get control of the ones here now, and to establish a clear procedure for managing the temporary foreign workforce.