Employers who knowingly hire illegal immigrants could lose valuable state tax deductions if Referendum H is approved by voters.
The measure would increase “state income taxes owed for some businesses that deduct wages or other compensation paid to unauthorized aliens.”
It requires businesses to admit to hiring illegal immigrants, disclose the amount paid to those workers and prohibits businesses from deducting those wages as a business expense.
“We wanted to let employers know that we are serious about the illegal alien situation,” said Rep. Bill Berens, (Broomfield), who co-sponsored the measure. Some lawmakers acknowledge the proposal will not raise much money for the state nor will it penalize many employers. But, proponents say, the referendum would make a statement to the business community about hiring undocumented workers, said Sen. Sue Windels, (Arvada).
“(Employers) cannot hire illegal immigrants and cannot get tax benefits for them,” she said.
If the referendum passes, businesses employment records would be checked during regular tax audits for any violations, Windels added.
Critics of Ref. H say the proposal puts undue burden on employers who already abide by federal employment laws that require prospective employees to fill out certain forms and provide certain types of identification.
“Now we are going to ask employers to try and find another way to figure out if someone is undocumented or not,” said Fidel Bush Montoya, coordinator of Confianza, a coalition of Latino Ministers. “That creates racial profiling,”
The measure goes beyond what federal employment requirements, which worries immigrant advocates who say it could lead to discrimination against other workers.
“We do need to make employers responsible, but they cannot act as immigration agents,” said Gabriela Flora, of the American Friends Service Committee. “Rather than enacting Referendum H, we should be pushing for enforcement of employment and labor laws for everyone.”
Staff writer Elizabeth Aguilera can be reached at 303-820-1372 or eaguilera@denverpost.com.
