Rumor: Refugees are exempt from taxes….

…..for a certain period of time.   This is from reader ‘bearinggifts’:

There is a persistent rumor out there according to which refugees who start businesses are exempt from taxes for a period of time. the tax-free time is usually stated as 3 years.

Sometimes this rumor has it that they pay no taxes of any type (eg., no income taxes, if employed) for a period of time. I kind of doubt this version of the rumor, but was wondering about the business tax exemption. It really sounds like something the corrupt SBA would do.

‘Bearinggifts,’ I keep hearing the rumor too about refugees not paying federal income tax for 3 years, but if that is true that would be a bombshell piece of information.  I’m guessing it is more likely that their income is so low they fall into that huge segment of the American population that pays no taxes anyway (you know the ones Obama wants to redistribute the wealth to).

I don’t know about the small business angle except that refugees get all sorts of opportunities through micro-loans and special savings accounts (IDAs) to start businesses.

Judy wrote favorably of such loans here.  I would be interested to know in light of the banking crisis how many of those loans have gone into default.  Note also in Judy’s story that a volag is involved in the lending—International Institute of St. Louis.  Is this more of the taxpayer-money racket these volags have gotten into?

I have written less favorably of micro-loans geared to immigrants and refugees here because these loans use special Sharia financing rules.  And, here for several reasons, not the least of which is that this favoritism creates animosity in small communities where American citizens wonder why they can’t get such good deals.

I’m getting off track.  As for the tax question,  ‘bearinggifts,’ I don’t know if those businesses are tax-exempt for a period of time.  Does anyone know?

Rumors is a new category we launched last week to try to find the facts behind many aspects of the Refugee Resettlement Program of the federal government.   Because the program is run so secretively, rumors abound.  And, frankly it is to the program’s detriment.  From the very beginning in Hagerstown, MD I’ve contended that informing the public is critically important.   If the program is a good one it should withstand public scrutiny.

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