So? The J-1s don’t have to pay the employee side, either. And, quite frankly, it doesn’t make that much difference because what matters is not who writes the check, but who loses the economic value, when a tax is paid, and as numerous studies have found, the employees generally end up bearing the economic burden of the payroll taxes, regardless of who has to write the check to Uncle Sugar.
In other words, even though those employers don’t have to write those checks, they aren’t significantly better off in terms of wealth than the employers who do have to write those checks because, at the end of the day, it’s the employees who are bearing the loss of wealth that goes to pay those taxes.
So are you trying to say that employers who don't have to pay the tab for a J-1's social security, thereby reducing their costs by 8% or so, do not have an incentive to hire J-1's over locals?
I would disagree strongly because the employer's costs are thus reduced and he does NOT have to share that increase in wealth with the employee.
Some of the purists have accused me of socialist thinking for application of the realities of labor economics to real life.
They argue that open borders are a good thing because they reduce costs across the board which benefit everyone. Juan McCain is one of them who holds out the prospect of unaffordable lettuce in the grocery stores if we have to pay lettuce pickers $50 per hour.
That's an idiotic argument on at least three counts:
Years ago, my sister worked in Grand Canyon National Park in the summer. By the time that food and dorm fees were deducted, she ended up with a little less than minimum wage. She still considered it a great experience because the hours were reasonable as were the meals and dorm fees. Somehow, I don't thank that is the case here. Kids from the Ukraine do not come to America infused with the same bloated sense of entitlement as does your average Section 8 housing occupant. But I could be wrong . . .