I don't know why you think illegals are not paying withholding taxes, and if there employers are not putting them on the books, then the employers can't deduct the expenses...so where is the tax savings? If a business is paying a combined federal and state income tax of say 33% then they can afford to pay someone $15 an hour and deduct it or $10 per hour and not deduct it....they might save a little on not paying workers comp but if something happens they are in deep do do.... Workman's comp is precisely where they are saving. In Florida, WC for the construction industry runs at over 50% of payroll and that's not chicken feed. And there is no deep doodoo, injuries for the illegals are handled by you and me as taxpayers - they know the risks and gladly take them for the money.