The basics (and dangers) of E-Verify

While the nation's senators are busy patting themselves on the back for passing a bill that will be left to rot in the chambers of the House of Representatives, it's worth taking the time to look at this first round of immigration reform legislation and determine what, if any, economic factors will take shape as the law develops. While the influx of both seasonal/unskilled and high-tech/skilled workers from abroad will no doubt prove to be beneficial for larger companies, it remains to be seen how Small Business America will stand once the regulations are in place and the country's immigration system is fundamentally reshaped.

One element enshrined within the amendment calling for tougher border restrictions could cause controversy for the leaders of smaller companies. E-Verify is an electronic system already in place in some U.S. regions that require employers to certify that their employees are authorized to work in the country. The Senate bill widens the scope of the program to every U.S. business, meaning that owners will have to pay to set up a new registry system.

Just how effective has E-Verify been so far? According to the American Civil Liberties Union (ACLU), of the roughly 20 million workers who have been examined by the system, approximately 221,000 were found to be illegal immigrants. But before you start applauding this figure, note that another 50,000 or so were wrongfully accused of being unauthorized to work in the U.S.

Conservative leaders, including former presidential candidate and U.S. Representative Ron Paul, have decried E-Verify as yet another government surveillance scheme. While these claims are unsubstantiated, there is little doubt that the system will have an economic impact on small businesses throughout America.

If you're an investor, you probably know by now that the Obama administration doesn't place a priority on meaningful economic reform. As a result, it's important to find ways to support your own income-generating efforts, such as utilizing automated trading software or purchasing cash flow real estate. Learn more by exploring today!