Arizona Tax cheaters beware, maybe ????????

Arizona Tax cheaters beware, maybe ????????



Arizona Tax cheaters beware Will Arizona follow suit............ Missouri is prosecuting employers accused of hiring illegal alien workers under state tax laws. DOBBS: The federal government's refusal to enforce this nation's immigration laws is forcing states to fight the growing crisis themselves. Tonight, the state of Missouri is prosecuting employers accused of hiring illegal alien workers under state tax laws. Missouri officials say it is outrageous that employers taking jobs away from American citizens and giving them to foreign citizens are also tax cheats. Lisa Sylvester reports. (BEGIN VIDEOTAPE) LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Missouri's Lake of the Ozarks, lots of land and beautiful scenery. Here, a new luxury condo complex called The Plaza Gardens is being built. State officials say the developer, Michael Schlup, was pumping up his profits by hiring illegal aliens, paying them cash, and avoiding state taxes. JAY NIXON, MISSOURI ATTORNEY GENERAL: We hope it sends a strong signal to all employers that they shouldn't be bringing in undocumented workers and trying to profit off the back of those, while clearly leaving out the taxpayers, as well as protection of those people at the same time. SYLVESTER: Schlup now faces 14 felony counts of failure to deduct, file, and pay Missouri employer with holding taxes. UNIDENTIFIED FEMALE: How do you (INAUDIBLE)? UNIDENTIFIED MALE: Fine. Wonderful. SYLVESTER: If convicted on all counts, he could face a fine of up to $140,000 and up to 70 years in prison. Schlup's attorney says his client did nothing wrong. DEE WAMPLER, MICHAEL SCHLUP'S ATTORNEY: So he's working very hard, as he always has, trying to make a living. So, like I say, it was a surprise to him the fact that the charges were filed. And we'll just have to wait. Right now let the case play out. SYLVESTER: More cases like this one are coming to light. Federal prosecutors raided the IFCO pallet company last month after illegal aliens were allegedly seen ripping up W-2 forms. The federal government is in charge of enforcing immigration laws, but state governments can prosecute tax cheats. STEVE CAMAROTA, CENTER FOR IMMIGRATION STUDIES: There's clearly a role to play for state and local governments. One area is in tax law. If you've got people working off the books in states with income tax, you've got employers and employees explicitly avoiding their tax obligation. SYLVESTER: The Center for Immigration Studies estimates 40 percent of illegal aliens in the United States are working off the books. (END VIDEOTAPE) SYLVESTER: The Missouri attorney general began investigating Plaza Gardens after several serious workplace accidents. This is the first case like this that the state has brought. But Attorney General Jay Nixon is now looking at other employers -- Lou. DOBBS: And Lisa, we're seeing a across the country more and more states and local governments taking on the responsibility of enforcing immigration law through -- whether it be through enforcement of tax laws or any -- any other number of laws in trying to deal with what is nothing less than a crisis. Lisa, thank you very much. see full transcript at...

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