I hate wading into these waters of immigration debate because they are filled with so much ire and hate borne of frustration from all sides of the table. However, the scapegoat argument (in my belief) is over costs. So, placing all notions of morality, humanity and tolerance aside, what are the actual costs of illegal immigration in quantifiable dollars? For that, I don’t have a concrete answer. But, complicated economies aren’t as directly proportional as saying person “a” received “x” amount of dollars in state benefit, so must therefore be “x” dollars in debt to the taxpayers. That is far too simplistic.
I’m not an economist, so I won’t make my own assumptions about what the taxpayers’ true balance sheet reflects in regards to illegal immigrants. But, I will summarise a few key points from an excellent article in the April 7, 2006 edition of Business Week.
Firstly, the assumption that illegal immigrants don’t pay taxes is patently false. Except in a few states, such as Oregon, every time you buy a pack of gum, a percentage of the cost goes to local and state governments – sales tax. Illegal immigrants pay sales tax like any other consumer in this country. One of the principles of a sales tax is that it is supposed to, in theory, proportionally relate one’s tax burden to one’s discretionary income. But, then again, that is the role of taxes, is it not? So, while many illegal immigrants might not pay anywhere near as much sales tax as, say, Bill Gates, they are at least contributing to the governments’ overall revenue systems. After all, we all buy groceries and go to the occasional movie.
We pay tax when we rent or own property. This is a major source of revenue for state and local governments, and whether you pay on your own property, or rent from a landlord, these costs are a very real benefit to the overall tax system. Again, these burdens are borne by illegal immigrants just as they are by you and me.
Many illegal immigrants, the majority of whom are employed, do end up giving part of their income to the federal government. According to the Business Week article, which cites a study conducted by Standard & Poor’s, the US Social Security Administration “maintains roughly $6 billion to $7 billion of Social Security contributions in an “earnings suspense file” — an account for W-2 tax forms that cannot be matched to the correct Social Security number. The vast majority of these numbers are attributable to undocumented workers who will never claim their benefits.”
In fact, that Social Security money that is left unspent, alone, could cover half of the public school tuition burden created by the 1.8 million children of illegal immigrants in the system, according to Business Week.
But these arguments assume that any person is nothing more than an economic burden to a society. None of these arguments even begin to explain the economic benefit we all see as a whole from the presence of undocumented workers.
Consider this: if every person in this country were to make at least the federal minimum wage of $5.15 per hour, would the companies that had previously been paying less for illegal labor internalise the resulting cost difference? You can bet your boots they wouldn’t. Everything from produce to new home prices would increase as a result. The same effect we see from free trade agreements with developing nations applies right here at home. Lower production costs result in lower consumption costs. Is that a good thing? It depends on whom you ask. But, I can assure you that every person living in America would be affected.
So, what is the real argument? I have presented some cases for how illegal immigrants do in fact contribute financially to our economy, but I haven’t heard much in the way of similar discussion in my daily life. I don’t believe, after all, that the debate is even truly about cost in dollars and cents. On the surface, sure, but it is really deep-seated in fear, xenophobia, and racism. Those are pretty strong suggestions, I realise, but there is a history of such emotions not just in our American culture, but in practically every human culture that has ever existed.
The Irish immigrants to the United States have undergone tremendous social persecution, as did the Japanese, Chinese, Italians and many, many others. And let’s be serious, though we talk about illegal immigration, we all know that Mexican nationals are at the center of this topic, though they only account for roughly half of the undocumented individuals in our country.
I plead with you to pause the hate-mongering, be it against foreigners in this country, or against those who sit at the other end of the ideological table, and consider the true costs of your arguments.
Soapbox dismounted.