A flatter tax system will boost real workers wages and simulatanieous reduce costs for businesses. This will stimulate more demand but wont increase inflation as the newer fatter tax freed paychecks will be buying these goods.
This could attract even more illegal workers as the economy will be needing more workers yet that lower tax rate could encourage both more automation and high wages for legal residents.
Bottom line is BETTER LAW ENFORCEMENT will reduce illegal immigration
[...A flatter tax system will boost real workers wages and simultaneously reduce costs for businesses...]
You make it sound simple. If so, why aren't we doing this? Wouldn't symbiosis be better than headbutting?
A fed sales tax would certainly catch up all who operate in the underground economy, but I don't see how this will effect illegals.
One obvious way, a retail sales tax would give the federal government a monetary stake in contolling the boarders to stem the flow of contraband and smuggling. Today there is little real incentive for the feds to actually do anything at all.
Put revenues at risk and watch border control become a primary focus in tax enforcement.