Are the "illegals" really draining our system?

Chadman

Realist
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I have no idea if the facts and figgers here are accurate, nor am I advocating any specific plan. I just found this article interesting and a little eye-opening. Maybe worth reading for you guys...

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No Free Ride
Shikha Dalmia
May 09, 2006

Shikha Dalmia is a senior analyst at*Reason Foundation, a free-market think tank. This column was originally distributed by the Knight Ridder/Tribune News Service and is reprinted here by permission.

Denying public services to people who pay their taxes is an affront to America's bedrock belief in fairness. But many "pull-up-the-drawbridge" politicians want to do just that when it comes to illegal immigrants.

The fact that illegal immigrants pay taxes at all will come as news to many Americans. A stunning two-thirds of illegal immigrants pay Medicare, Social Security and personal income taxes. Yet nativists like Congressman Tom Tancredo, R-Colo., have popularized the notion that illegal aliens are a colossal drain on the nation's hospitals, schools and welfare programs?consuming services that they don't pay for.

In reality, the 1996 welfare reform bill disqualified illegal immigrants from nearly all means-tested government programs including food stamps, housing assistance, Medicaid and Medicare-funded hospitalization. The only services that illegals can still get are emergency medical care and K-12 education.

Nevertheless, Tancredo and his ilk pushed a bill through the House criminalizing all aid to illegal aliens?even private acts of charity by priests, nurses and social workers. Potentially, any soup kitchen that offers so much as a free lunch to an illegal could face up to five years in prison and seizure of assets.

The Senate bill that recently collapsed would have tempered these draconian measures against private aid. But no one?Democrat or Republican?seems to oppose the idea of withholding public services. Earlier this year, Congress passed a law that requires everyone who gets Medicaid?the government-funded health care program for the poor?to offer proof of U.S. citizenship so we can avoid "theft of these benefits by illegal aliens," as Rep. Charlie Norwood, R-Ga., puts it.

But immigrants aren't flocking to the United States to mooch off the government. According to a study by the Urban Institute, the 1996 welfare reform effort dramatically reduced the use of welfare by undocumented immigrant households, exactly as intended. And another vital thing happened in 1996: the Internal Revenue Service began issuing identification numbers to enable illegal immigrants who don't have Social Security numbers to file taxes.

One might have imagined that those fearing deportation or confronting the prospect of paying for their safety net through their own meager wages would take a pass on the IRS' scheme. Not so. Close to 8 million of the 12 million or so illegal aliens in the country today file personal income taxes using these numbers, contributing billions to federal coffers. No doubt they hope that this will one day help them acquire legal status?a plaintive expression of their desire to play by the rules and come out of the shadows.

What's more, aliens who are not self-employed have Social Security and Medicare taxes automatically withheld from their paychecks. Since undocumented workers have only fake numbers, they'll never be able to collect the benefits these taxes are meant to pay for. Last year, the revenues from these fake numbers?that the Social Security administration stashes in the ?earnings suspense file??added up to 10 percent of the Social Security surplus. The file is growing, on average, by more than $50 billion a year.

Beyond federal taxes, all illegals automatically pay state sales taxes that contribute toward the upkeep of public facilities such as roads that they use, and property taxes through their rent that contribute toward the schooling of their children. The non-partisan National Research Council found that when the taxes paid by the children of low-skilled immigrant families?most of whom are illegal?are factored in, they contribute on average $80,000 more to federal coffers than they consume.

Yes, many illegal migrants impose a strain on border communities on whose doorstep they first arrive, broke and unemployed. To solve this problem equitably, these communities ought to receive the surplus taxes that federal government collects from immigrants. But the real reason border communities are strained is the lack of a guest worker program. Such a program would match willing workers with willing employers in advance so that they wouldn't be stuck for long periods where they disembark while searching for jobs.

The cost of undocumented aliens is an issue that immigrant bashers have created to whip up indignation against people they don't want here in the first place. With the Senate having just returned from yet another vacation and promising to revisit the stalled immigration bill, politicians ought to set the record straight: Illegals are not milking the government. If anything, it is the other way around.
 

gardenweasel

el guapo
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Jan 10, 2002
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"the bunker"
an extremist libertarian organization....

like extremist liberalism and extremist conservativism,it`s a fringe outfit...

"Libertarians generally define liberty as the freedom to do whatever one wishes up to the point that one's behavior begins to interfere with or endanger another's person or property. At the point of interference, each party would become subject to certain principled rules for adjudicating disputes, which might include community-imposed sanctions against one who has demonstrated a proven lack of respect for the rights of others. Most libertarians allow that such sanctions are properly imposed by the state in the form of criminal or civil penalties, ""though many dispute the degree to which such punishment is necessarily a state function.""

they could give a shit whether we have a country with real borders.....

they basically preach a form of anarchism...

free market everything...including our sovereignty...

this a-hole proposes letting the entire underclass of a poor practically third world country become our problem...i`m sure vicente fox agrees with him...

one of his other noteworthy articles..." Defend America, Buy Iranian Oil"....i guess so they can fund hamas and al qaeda...and use "our" money to build "their" military..."so they can wipe israel off the map....

he figures,if we`re "co-dependent",everything`s cool.....

very simplistic...
 
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ferdville

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Pretty weak arguments presented there. No one can really ascertain what percentage illegals pay in taxes because there are no accurate figures on those working "under the table." To consider emergency medical care (pregnancy an emergency?) and schooling as only costs is patently absurd. Even so, the costs in dollars are huge. Beyond that, there are other costs not calculated in dollars. Hospitals and emergency centers have had to close throughout the US due to lack of funds - due in large part to illegals who do not pay for services. Schools are in disrepair and who can say how much of it is due to the need for English as a Second Language classes and other classes that are necessary to deal with the flood of illegals. Schools have huge numbers of English Language Learners that pull big dollars from the budget of school districts to give special assistance to illegals. And certainly not minor is the mammoth amount of money that the local and state police accrue in dealing with illegals. NOt to mention the prison system which in California is composed of approximately 35% illegals. This is not petty cash that is required to provide these services.
 

Chadman

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Good points made. Like I said, I am not advocating anything as I am pretty behind the times on the issue. It was interesting to me what many of the "illegals" actually do pay. No doubt it pales in comparison to what many take, in many instances.
 
P

PRO190

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About the Author
Steven A. Camarota is Director of Research at the Center for Immigration Studies in Washington, D.C. He holds a master's degree in political science from the University of Pennsylvania and a Ph.D. in public policy analysis from the University of Virginia. Dr. Camarota often testifies before Congress and has published widely on the political and economic effects of immigration on the United States.




The High Cost of Cheap Labor
Illegal Immigration and the Federal Budget

Executive Summary


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This study is one of the first to estimate the total impact of illegal immigration on the federal budget. Most previous studies have focused on the state and local level and have examined only costs or tax payments, but not both. Based on Census Bureau data, this study finds that, when all taxes paid (direct and indirect) and all costs are considered, illegal households created a net fiscal deficit at the federal level of more than $10 billion in 2002. We also estimate that, if there was an amnesty for illegal aliens, the net fiscal deficit would grow to nearly $29 billion.

Among the findings:

Households headed by illegal aliens imposed more than $26.3 billion in costs on the federal government in 2002 and paid only $16 billion in taxes, creating a net fiscal deficit of almost $10.4 billion, or $2,700 per illegal household.


Among the largest costs are Medicaid ($2.5 billion); treatment for the uninsured ($2.2 billion); food assistance programs such as food stamps, WIC, and free school lunches ($1.9 billion); the federal prison and court systems ($1.6 billion); and federal aid to schools ($1.4 billion).


With nearly two-thirds of illegal aliens lacking a high school degree, the primary reason they create a fiscal deficit is their low education levels and resulting low incomes and tax payments, not their legal status or heavy use of most social services.


On average, the costs that illegal households impose on federal coffers are less than half that of other households, but their tax payments are only one-fourth that of other households.


Many of the costs associated with illegals are due to their American-born children, who are awarded U.S. citizenship at birth. Thus, greater efforts at barring illegals from federal programs will not reduce costs because their citizen children can continue to access them.


If illegal aliens were given amnesty and began to pay taxes and use services like households headed by legal immigrants with the same education levels, the estimated annual net fiscal deficit would increase from $2,700 per household to nearly $7,700, for a total net cost of $29 billion.


Costs increase dramatically because unskilled immigrants with legal status -- what most illegal aliens would become -- can access government programs, but still tend to make very modest tax payments.


Although legalization would increase average tax payments by 77 percent, average costs would rise by 118 percent.




The vast majority of illegals hold jobs. Thus the fiscal deficit they create for the federal government is not the result of an unwillingness to work.




A Complex Fiscal Picture
Welfare use. Our findings show that many of the preconceived notions about the fiscal impact of illegal households turn out to be inaccurate. In terms of welfare use, receipt of cash assistance programs tends to be very low, while Medicaid use, though significant, is still less than for other households. Only use of food assistance programs is significantly higher than that of the rest of the population. Also, contrary to the perceptions that illegal aliens don't pay payroll taxes, we estimate that more than half of illegals work "on the books." On average, illegal households pay more than $4,200 a year in all forms of federal taxes. Unfortunately, they impose costs of $6,950 per household.
 
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