Immigrant Taxation Laws Need To Be Revisited

An immigrant to the US pays 40% of his income in taxes; for something he may never use.
US taxation laws are grossly out of sync with logic. Consider the situation where an immigrant enters the US for a period of, say, 6 months (why you could even keep him there for an year if you wish). Let us assume his bi-monthly salary to be around 1500$.

As per US tax regulations, all employees stand to lose 40% of their income to taxes. The immigrant keeps paying up half of his income to the state. In case he lives in one state and works in another, he pays up in both the states without commensurate income!

How much of that money actually goes into welfare activities? How much of that money is not victim to white collar crimes?

Let's extend our imagination to think, for one minute that the state might actually be doing a lot of good to the citizens of US with that money: providing more social security, improving public facilities, maybe even lowering the fiscal deficit (considering the fact that almost half of what every individual earns goes to the state). Apparently the immigrant is paying up so that all other permanent citizens can enjoy and live life a little better. What is in it for that poor immigrant?

What's more? He might also fall victim to double taxation when the immigrant returns to his parent country!

In countries like India, which have a history of being ruled by aliens, taxation was an approved source of income for the invaders in times of war. It is quite sad that after 50 years of independence, countries like US and India still plunder their own countryman of his wealth, so that they could buy a bigger home or a better car.
   By venkat ananthraman
Published: 1/24/2007
 
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