Explain the free-rider problem. How is illegal immigration related?

Answer 1

The free rider problem has to do with public goods. Generally, public goods are enjoyed by everyone in a society -- the safety that comes from a competent and efficient police force and military, well maintained roads, relatively clean air, etc. Since they benefit everybody and there is no private-sector ability to keep non-paying customers from enjoying the benefits, these have to be funded by tax dollars.

The free rider problem is where people are not paying taxes but still enjoy the benefits. Some people point to illegal immigrants as the main free riders, but in fact, most illegal immigrants are not.

Employers have to pay taxes on profits. Wages are usually their biggest expense. If they pay cash and do not record the expense, they will have to pay corporate rate taxes on all those wages, as if they were profits. So instead, they require social security numbers on all their employees, so they can count the paid wages as an expense. Illegals often provide fake social security numbers, therefore having all the taxes deducted from their paychecks, yet have no hope of filing to get any of that tax money back. Most illegals are low income, so if they could file, they'd not only get all their federal taxes back but they'd qualify for the earned income credit as well. They can never benefit from all those social security contributions, either.

If America sent all the illegal aliens home, tax revenues would take a serious dip. Illegals make low wages, pay taxes, and can never get that money back.

Answer 2

Well, free-riders are a dead weight on the economy , but there always gonna be free riders retired people, disabled people, unemployed people. Retire people have a right to the pension and social security taxed out of wages from the government. The goal is to reduce free-riders, and provide incentives to work to people are physically and mentally capable of working. Illegal immigrants are a minorty taking up welfare benefits its usually the young mother taking welfare benefits, or a disabled person. Illegal immigrants get services because the federal goverment and courts ruled that is illegal to deny services to illegals.

Answer 3

From my personal oppinion Free-rider's in United States are people working for the american economy that are not legal and don't pay a tax, they may be employed for other american workers in the agriculture industry mainly because these workers are cheap compared to americans, they are latin immigrants who want to have a better salary in spite of being away from their family. At the end of the month, this free-riders, send a big percentage of their money to their original countries, paying the international transfer fund system (mainly Western Union) a tax. This is a paradox, because they really pay a tax, but not for an american enterprise.

Answer 4

You get to "undertake" 20 - 30 million illegals which you probably did no longer want interior the 1st place and pay for all their costs on actual of your man or woman. and you are not getting to declare them on your tax varieties as dependents.