A "red card" for aliens

No, not that kind of alien.

I read an idea online today concerning illegal aliens currently in the Country.

Have them apply for a "red card" which entitles them to work in the USA for the duration of their lives but denies them any benefits to which "green card" immigrants are entitled.

To obtain a "red card" the alien must undergo a background check and a complete physical examination. He or she must have nothing on his/her record, not even a charge of "driving while unlicensed." He or she signs a notarized statement in which he/she agrees to report to INS every two years and failing that, agrees that he/she can be incarcerated and deported for failure to comply.

Employers could freely hire "red card" aliens. They would be mandated to pay reasonable wages (vs cash under the table) and to deduct all withholding taxes. "Red card" aliens would not be entitled to any benefits (taxation without representation? not on your life, because the alien refused to come to the USA legally, he/she has no 'rights' and when applying for the "red card" agrees that if he/she wants to have the same rights as a "green card" immigrant, he/she must return to his/her home Country and enter the USA through legal proceedings). But the "red card" alien could stay in the USA all his/her life. Employers could deduct for health care and "red card" aliens could buy into 401K or IRA.

However, a "red card" alien who returns to his/her native Country, would not be allowed back into the USA for a minimum of two years unless there were special circumstances. And INS could limit the meaning of "special circumstances." Death of a parent, spouse, or child would be three "special circumstances."

Inside every "red card" would be an embedded micro-chip. This micro-chip would be used to locate any "red card" alien who failed to report to INS every two years. Anyone who tampers with or destroys a "red card" and anyone who tries to commit fraud with a "red card" would be automatically given a 7 year jail sentence and deported after serving 2 years of the sentence. That person would be barred from ever entering the USA again.

What would this do? It would ensure that the illegal alien would receive a living wage, healthcare benefits, and that the employer could freely hire aliens without fear of reprisal from the US Government.

It would also send a message to aliens who want to come to the USA. If you come here through the "red card" program, you can work here, but you won't be receiving any US benefits when you retire or if you become disabled. There's already a program for entitlement to benefits. It's called "green card" and US citizenship through Naturalization.

Does the idea have merit?