Originally Posted by dparker29
I am currently in school and we are writing papers on how to solve illegal immigration and I choose to use taxing all money wired to other countries from the U.S from illgal immigrates since they send 52 BILLION dollar to there homes. So my question is why and how would taxing this money help americans. If anyone can help me that would be great. I found lots of helpful websites but not too many on how or why just that it is a good idea.
Think it through. How do you tell the money if from illegals? As soon as you demand ID only legals send money. Some legals go into business fronting for the illegals. There are all sorts of ways to get money across borders other than wiring it.
If you tax all transfers you interfere with commerce a whole lot. Likely you would get retaliaton and US transfers in would be taxed by the Europeans. If you tax only the convenience places that flow dries up. They simply go to using commercial users who batch it up and send it through commercial channels.
So by and large it is impractical.