U.S. Government Paying Companies Who Hire Illegal Immigrants And Lay Off American Workers

Finance expert John Williams in a recent video on YouTube has raised concerns about a trend in American hiring practices. Tax credits are pushing companies to hire migrant workers over American citizens.

This, along with corporate investments in worker housing, has significant implications for the job market and real estate sector.

Incentives Pushing Americans Out Of Jobs

In the video, Williams explains how companies are taking advantage of tax credits, such as the Work Opportunity Tax Credit, to cut labor costs associated with hiring migrants. 

With incentives totaling close to $10,000 per migrant hire, there are a lot of financial benefits attached to hiring immigrant workers. The result? Mass layoffs and job displacements for American workers.

What Is The Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a special tax credit for businesses that hire people from specific groups who often have trouble finding jobs. These groups include veterans, people who get certain government help, ex-convicts, and of course migrants.

Businesses get a tax credit based on how many hours these employees work. The credit amount varies depending on the target group the employee belongs to and the number of hours worked. The employees must also work a minimum of 120 hours in their first year.

Other Incentives In Favor Of Migrant Hire

It’s not just the WOTC that’s working in favor of migrants. The Empowerment Zone Employment Credit is a tax credit that offers incentives to businesses in empowerment zones when they hire workers from those places. 

However, because many empowerment zones have lots of immigrants, businesses might find it easier to hire migrants from those zones instead of US citizens from other places nearby. This could make it harder for US citizens to find jobs, even if they live close to the empowerment zones.

Changes In Job Market Dynamics

Williams drew attention to companies like Tyson Foods, to explain the extent to which corporations are profiting from tax credits to hire thousands of asylum seekers and migrants.

Companies are compelled to choose migrants over Americans because they’re a less expensive labor option and because of the lucrative tax benefits involved. All of this is changing the job market dynamics.

Tyson Foods Layoffs And Migrant Hiring

Tyson Foods said they’re closing a pork factory in Iowa, leaving over 1,000 people without jobs. They hired migrants in Manhattan for jobs at a Tennessee plant.

After announcing that they had teamed up with the Tent Partnership for Refugees, staff from the poultry heavyweight engaged with asylum seekers at the New York office of Chobani Yogurt, whose CEO Hamdi Ulukaya founded the charity.

Congress Should Address This

Reportedly, around 87 migrants from Central and South America were hired in two groups. Tyson employs about 42,000 immigrants and wants to hire more, according to Tribune News Service.

In response to the news, Senator J.D. Vance, from Ohio, said companies that lay off Americans and hire foreign nationals should be looked at by Congress. He said, “We’ll see if we can change that, assuming Tyson is following the law.”

We’ve Got To Hammer This Point Home

“All we know is that they are firing American workers and hiring illegal aliens to replace them. This is the entire point of illegal immigration — and Republicans, we’ve got to hammer this point home,” he said.

Vance said hiring migrants or foreign nationals willing to work for less money than Americans makes the job market harder and lowers wages for working-class families.

LIHTC Benefits Migrants and Developers

Then there’s the Low-Income Housing Tax Credit (LIHTC). The LIHTC helps migrants by making affordable rental housing for low-income people, including immigrants. Rules about tenant income levels in LIHTC properties make them more available to migrants who qualify. 

This encourages developers to build housing for diverse communities, including migrants. It helps migrants access affordable housing, which helps them financially and of course helps the companies involved.

Corporate Hiring And Worker Housing Investments

It’s no surprise then that big corporations like Amazon and Blackstone are putting lots of money into affordable housing projects. This shows a big change in the real estate world.

Williams’ video points out how government policies, like the Workforce Housing Tax Credit and low-income housing tax credit, help companies invest in affordable housing. 

Worrying Trends For The Society And Economy

While these policies seem to help with housing shortages, they raise questions about the economy’s future and whether companies’ interests are put ahead of society’s needs.

The combination of tax credits, corporate hiring, and real estate investment suggests big changes in the American economy. Worries about job security, unequal pay, and the shrinking middle class make people think about the effects of these trends on society and the economy.

Hiring Migrants Makes More Sense For Companies

With employer-provided housing and lodging for target groups (like migrants) exempted from taxing costs, that’s a big plus in the account for companies that choose to hire migrants over Americans.

He mentioned that as a result of all of these policies that favor companies hiring migrants, “we’re gonna see a lot of opportunities flowing to migrants because it makes a lot more sense for the companies.”

Where Does This Leave The Everyday American?

He added that this creates a really lucrative opportunity for migrants. They’d be coming in with “no credit card debts, no student loan debts, no mortgage debts, and no expenses.” 

On top of that, they’re presented with a place to live, good job opportunities, and free healthcare. But it does beg the question. Where does this leave the everyday American?

What Are Your Thoughts

How do you view the balance between supporting business growth and looking out for American workers, especially with tax credits favoring hiring migrants? What ethical issues arise when companies choose cheaper migrant labor over investing in local workers?

How might the rise in tax credits for hiring migrants impact job opportunities and pay differences in local areas? How can policymakers ensure fair access to housing for everyone while also encouraging businesses to invest in affordable housing?