"What I mean is that every employer should be required to check with the IRS or with some new government agency to make sure that the person he is hiring is here legally. If not, then if the employer hires the individual, the employer would get socked with a million dollar fine and go to jail for a year or two."
Actually, this is long-standing US law: Every employee must submit a form W-7 along with official proof of citizenship and right to work (passport, Social Security card, etc). Every employer is required to keep this proof on file in case they are ever audited. And the employee information is filed with the IRS.
The penalties CAN BE horrific for any US employer who does not comply. (wink, wink) Mild to non-existent for any employee who falsifies this information.
And there is no penalty, whatsoever, for the government not doing its job at all ... doing its job selectively or, I believe, only doing it when there is POLITICAL motivation.
It is what you would expect from a criminal/self-serving government.
In that regard it looks a lot like many other nonsensical or pernicious things done here in "Land of the Free, Home of the Brave".