However, you can tax income. And it's not that difficult to vary a PAYE income tax rate according to the visa status of the worker. More importantly, it's not a lump sum tax, one that operates like a transactions tax. The distortions caused by a higher income tax rate would therefore be very much less. But if there is to be a charge upon immigrants it would be better as a variation in the income tax rate than as a one off charge.

Source: Forbes January 11, 2017 15:35 UTC