Trusted local news leader for Kingman, Arizona & Mohave County
Tue, Jan. 28

Community Viewpoint: Illegal workers driving up the price of housing, heathcare and other benefits

I am not sure everyone understands the impact on our local economy illegals have on our construction workers. Just because a contractor hires illegals, it does not mean a house will cost less.

Let’s take a quick look on how it works.

Let’s say you want to build a house. You would go to a general contractor and ask for a price. The contractor would give you a price for a basic house per square foot. Then he or she would add the cost of all the changes or upgrades (appliances, flooring etc.).

The general contractor will then ask for bids from local contractors, electrical, plumbing, framing, concrete, drywall and other contractors that may be needed. The general contractor will ask contractors from each trade to submit a sealed bid to perform the work needed. The work is normally given to the lowest bidder. Unfortunately some contractors do what is called “price shopping.”

This is when they take the lowest bid and go a contractor who hires illegals and give him that price. Because this contractor does not pay his employees the going rate, he can bid lower. The general contractor will go back to one of the contractors that have legal employees and ask him if he can beat this price. The general contractor wants the lowest price but realizes the legal workers normally do higher quality work. It is hard if not impossible to match this new price.

You have to understand the general contractor does not pass these savings on to you. The subcontractor who hires illegals can still make a nice profit.

Here is how he does it. Instead of paying the going rates, he pays them half the wage. He then claims they are independent contractors and collects no taxes. At the end of the year, he issues a 1099 to these illegals under bogus Social Security numbers.

On these 1099s he claims he paid them the going rate and pockets what would be the taxes. Because the contractor sends in the one copy of the 1099 to the IRS, and throws away the employee’s copy, no taxes are paid.

In addition, one must think of the impact on the schools, the benefits given and health care. I know they cannot get Obamacare.

This is true. But you do realize under law, the hospital cannot turn them away even though they have no insurance or money? We end up paying for the hospital visit.

Time to secure our borders.

Anchor babies is another subject. Give the parents a copy of the birth certificate and send them back with the parents. When they become 18, they can come back as a citizen.

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