Thread: Report says loss of undocumented workers to cost trillions

Report says loss of undocumented workers to cost trillions
By Brandi Grissom / Austin Bureau
Article Launched: 05/21/2008 12:00:00 AM MDT


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AUSTIN -- The U.S economy could lose nearly $1.8 trillion a year if undocumented workers left the country, according to a report released this week by a group of immigration reform proponents.
The report, conducted by the Waco-based Perryman Group for Americans for Immigration Reform and released Monday and Tuesday in Houston and Dallas, concludes that undocumented workers are vital to the U.S. economy and that an enforcement-only immigration strategy is unworkable.

"We're looking for sensible reforms that are manageable solutions," said Beto Cardenas, executive counsel for AIR, a group of businesses and individuals pushing for immigration reform.

Undocumented workers contribute more to the economy than they use in public services, according to the 70-page report. That's a finding anti-immigration proponents challenge, arguing the government must stop millions from coming into the country illegally and draining taxpayers.

One of eight people in the U.S. is an immigrant, according to the Perryman report, and about one-third of those are undocumented. The nation has about 8.1 million undocumented workers.

The report projected significant economic consequences if enforcement-only immigration strategies -- such as constructing the border fence, aggressively arresting and deporting immigrants and imposing fines on businesses that hire undocumented workers -- are implemented without a plan to provide legal workers.

Eliminating undocumented workers would cause a $1.76

trillion loss in spending, a $651.51 million drop in output, and would cost the economy about 8.1 million jobs.
"In fact, millions of jobs are at stake, and the spillover effects would ripple through every sector of the economy and every region of the country," the report states.

Texas, which has the second-largest undocumented immigrant population, about 1.4 million, could lose more than $220 million from its economy each year, along with about 1.1 million jobs, according to the report.

"An enforcement-only approach is not a solution that will address the economic needs of this country," Cardenas said.

Undocumented immigrants also pay federal, state and local taxes but use few public services, the report states.

Rich Cane, president of the El Paso Hotel-Motel Association and owner or partner in several area hotels, disagreed with the report's findings.

Hoteliers in El Paso, he said, could get by without undocumented workers, though they support a program to bring workers in the nation legally.

"Illegal immigrants cost us a lot more than they put in, and we can manage without it," Cane said.

He said undocumented immigrants contribute to increasing property taxes that are hurting his business and others.

A 2006 report by the Texas comptroller showed that while undocumented immigrants contributed more than $17 billion to the state economy, local governments paid $1.44 billion in uncompensated health-care and law enforcement costs.

Irasema Coronado, associate professor of political science at the University of Texas at El Paso, said the immigration problem in the U.S. is a Catch-22 situation.

Most people want to stop illegal immigration, she said, but doing so would inevitably affect the economy because so many companies rely on the inexpensive labor of undocumented workers.

"We all want cheap stuff, and we want good stuff," Coronado said, "but we don't really want to pay for the worker."


Brandi Grissom may be reached at bgrissom@elpasotimes.com; 512-479-6606.





http://www.elpasotimes.com/news/ci_9326433

Have you heard the saying, when California sneezes, the rest of the country catches the flu? Generally what starts in California eventually spreads to the rest of the country. That is, unless a state takes measures to resist it. Unless every state realistically tackles illegal immigration by instituting Comprehensive Immigration ENFORCEMENT, which California has refused to do, this is what you can expect:

As of 2006, California contained greater than 25% of the total illegal alien population within the U.S. Many of these illegals concentrate in Los Angeles. New statistics from the Department of Public Social Services reveal that illegal aliens and their families in Los Angeles County collected over $37 million in welfare and food stamp allocations in November 2007 – up $3 million dollars from September. Twenty five percent of the all welfare and food stamps benefits are going directly to the children of illegal aliens. Illegals collected over $20 million in welfare assistance for November 2007 and over $16 million in monthly food stamp allocations for a projected annual cost of $444 million. "This new information shows an alarming increase in the devastating impact Illegal immigration continues to have on Los Angeles County taxpayers," said Antonovich, LA County Supervisor. "With $220 million for public safety, $400 million for healthcare, and $444 million in welfare allocations, the total cost for illegal immigrants to County taxpayers far exceeds $1 billion a year – not including the millions of dollars for education."

Just keep in mind that the $37 million a month is for only one county in one state and is only welfare and foodstamp benefits. It doesn't include hospital care, education, fraud, wage depression, crime, depreciation of housing values, the portion of bad loans given to illegal aliens by banks, insurance costs and the myriad of other burdensome expenses that illegal aliens put on the backs of American citizens. There are 29 sanctuary cities in California and because of that there should be little wonder why so many illegal aliens stay in this state. They basically operate with impunity and even if they get arrested for a serious crime there is little chance of them being deported. They can sign up for welfare and food stamps with no questions asked and the hospitals provide them with free care as long as there are still emergency rooms that can’t turn them away for lack of funds. All things considered, California has rolled out the welcome mat for them.

Is there any wonder that California is right now in a fiscal crisis emergency with a budget deficit greater than $14 billion and growing? Reliable estimates calculate illegal aliens cost the state $10.5 billion each year! So what’s Schwarzenegger’s solution? A 10 percent across-the-board reduction in state agency funding,, transferring $2 billion in spending to the next fiscal year and increasing taxes. Why not cut all public services to those not in the U.S. legally? Just a simple thought on my part that would go a long way to putting California back on its feet. A bell should be ringing in you head about right now that tells you this is what is coming throughout America if you refuse to act locally and demand that your political leaders act against illegal immigration.

The Congressional Budget Office in December 2007 (CBO: The Impact of Unauthorized Immigrants on the Budgets of State and Local Governments) stated the tax revenues that unauthorized immigrants generate for state and local governments do not offset the total cost of services provided to those immigrants. Illegal immigrants are a NET COST LOSS and a burden to the budgets of all states. This cost is largely borne by the states and citizen taxpayers. Federal payments allocated by Washington fall far short in reimbursing state and local government expenditures.

A report in April 2008 by economist Edwin Rubenstein titled the FISCAL COST OF IMMIGRATION, indicated:
- The impact on 15 Federal Departments surveyed was: $346 billion in fiscal related costs in FY 2007.
- Each immigrant cost taxpayers more than $9,000 per year.
- An immigrant household, consisting of two adults and two children, cost taxpayers $36,000 per year. Legal immigrants were not separated out from illegal immigrants for the fiscal impact study, but if they had been, the fiscal cost per ILLEGAL immigrant would be even more shocking than the figures quoted above.

The annual cost for uncompensated emergency care to Mexican Border States (California, New Mexico, Arizona and Texas) is $200 million. California taxpayers paid $79 million for illegal alien health care. Texas paid $74 million. –Tom DeWeese, President of American Policy Center.

The average annual cost per child for education is $7,161, totaling $109 billion to educate illegal aliens annually. The average cost of bilingual education is $1,200 per illegal student. U.S. schools annually educate 1.1 million illegal children. -Tom DeWeese, President of American Policy Center.

A major cost factor in the conduct of school operations relates to the vast number of children of illegal immigrants in our classroom and the special-training dictates for many of those students being taught in their native language — some 82 languages in San Diego County, 112 languages in Los Angeles County. – North County Times, March 2008. In New York City alone, more than 200 languages are spoken in the public schools. –NYU Steinhardt School of Culture, Education and Human Development.

$108.2 million is spent each year by U.S. border counties in the four state region to pay for law enforcement, criminal justice and emergency healthcare services to illegal immigrants, states a February 2008 report from the United States/Mexico Border Counties Coalition (USMBCC). Current federal reimbursement returns only 11.5 cents on the dollar to counties for handling criminal illegal immigrant services.

From 1999 through 2006, the 24 counties along the U.S.-Mexico border spent a cumulative $1.23 billion on services to process criminal undocumented immigrants through the law enforcement and criminal justice system. In fiscal year 2006 alone, the cost was $192 million. Yet, the federal government has only reimbursed these 24 counties $4.7 million for detaining criminal undocumented immigrants for fiscal year 2006 (and $54.8 million since 1999). These are staggering costs considering the rural nature and poverty level of most of these border counties. The costs to process undocumented immigrants come at the expense of basic, vital services to county residents. (Undocumented Immigrants in U.S. Border Counties: The Costs of Law Enforcement and Criminal Justice Services; U.S.-Mexico Border Counties Coalition February 200

The average illegal immigrant family uses $2,700/year more in services than it pays in taxes. In 2002, this amounted to a $10.4 billion drain on the federal budget. Some of the greatest federal costs included: Medicaid ($2.5 billion); treatment for the uninsured ($2.2 billion); food assistance programs ($1.9 billion); the federal prison and court systems ($1.6 billion); and federal aid to schools ($1.4 billion). According to the CIS report, since most of the illegal aliens currently in the workforce do not have a high school diploma, they only qualify for low paying jobs. That translates into low federal tax payments. Should illegal aliens ever receive an amnesty, it is estimated that net deficit costs would triple to $7,700 per household due to eligibility to all federal, state and local services. http://www.cis.org/articles/2004/fiscalrelease.html

Furthermore; nationwide, 40% of households headed by an illegal alien receive welfare benefits and 56% have no health insurance. Standard & Poor’s reports that education of illegal alien children costs the states and federal government $11 billion dollars per year. http://www.youtube.com/watch?v=hduG9Dw0oYg

Heritage Foundation research shows in FY 2004, at the state and local level, the average low skill immigrant household received $14,145 in benefits and services and paid only $5,309 in taxes (those that actually paid taxes). The average low skill immigrant households imposed a net fiscal burden on state and local government of $8,836 per year. That is approximately $9000 for EACH immigrant household of which at least 50% are illegal aliens.

In California, each illegal immigrant will take $50,000 in services from the state beyond what he will contribute in taxes during his lifetime. -The Immigration Solution; Manhattan Institute, 2007

Robert Rector of the Heritage Foundation calculates that each immigrant who is a high school dropout, as most Mexican immigrants are, will end up costing taxpayers $85,000 over his lifetime.

Taxpayers in our country pay more than $100 billion every year on health care and other services for illegal immigrants, including education, law enforcement costs, and housing. – Congressman Dean Heller-Jan. 2008 http://www.nevadaappeal.com/article/200 ... /729401847

A Harvard University study released in January 2008 found that illegal aliens depressed wages in Arizona by $1.4 billion dollars. Hardest hit were low skilled legal workers whose wages fell by 5%. Wage suppression of American workers is a consistent effect throughout the country due to the employment of illegal aliens. http://www.azcentral.com/business/artic ... 10-ON.html

40% of the decline in employment of black men is due to immigration. Foreign workers are taking American's jobs and depressing wages. And while Americans from all backgrounds are being harmed, lower to middle income African American workers are being disproportionately affected. –Dr. Frank Morris, former Executive Director of the Congressional Black Caucus Foundation; February 2008.

The World Bank reports (Worldwide Remittance Flow to Developing Nations Report) for 2006, $68.1 billion dollars were sent by migrant workers (more than 50% illegal aliens) mostly from the U.S. to Latin America. Mexico received 24.4 billion, South America 24.4, Central America 11 billion and the Caribbean 8.4 billion. This is a direct transfer of a huge portion of our economy to the third world; largely by a group of people (illegal aliens) who are not even authorized to work in our country much less have an established presence here.

The U.S. government estimates that since 2003, Mexican drug trafficking organizations have repatriated $22 billion to Mexico from the U.S., which is 20% of all money sent to Mexico from it’s citizens residing, legally and illegally here during this interval. Drug money remittances have accelerated since 2002 when the U.S. government allowed banks to accept the Mexican Matricula Consular ID card. This has enabled these crime groups to engage in money laundering. (U.S. State Department report; March 200

Questions you should be asking include "Why is even $1 of taxpayer money being consumed providing services and paying for the huge cost burden of illegal aliens in every state of America? Why are we allowing business and corporations to import cheap foreign labor (both legal and illegal) to drive down wages and put Americans out of work? Why are we importing a foreign workforce that transfers a significant amount of money from our economy to foreign nations?"

As you can see...they are wrong!!! Someone check into the membership and funding of this group. I'll bet it's the OBL, COC, business and corporations that profit handsomely from illegal immigration, the ACLU...and all the other usual suspects.

THE CORPORATIONS THAT HIRE ILLEGALS WILL LOSE MONEY. NO ONE ELSE IS GOING TO LOSE MONEY.

LOSS OF JOBS? DONT THINK SO. EITHER THEY WILL HIRE AMERICANS OR THEY WILL TAKE THEIR COMPANY TO MEXICO. BUT IT REALLY DOES NOT MATTER IF THEY TAKE THEIR COMPANY TO MEXICO SINCE THEY WERE NOT HIRING AMERICANS ANYWAY. SO IT IS NO SKIN OFF OUR NOSES. LET THEM TAKE THEIR COMPANY TO DRUG CARTEL SATURATED MEXICO. LETS SEE HOW LONG THEY LAST DOWN THERE. NOT LONG I SUSPECT.

THEY WILL HAVE TO HIRE AMERICANS. AND I SAY IF A COMPANY GOES OUT OF THE COUNTRY FOR LABOR THAT THEY SHOULD NOT BE CONSIDERED AN AMERICAN COMPANY. THERE SHOULD BE HEAVY TARIFFS ON IMPORTS TO PROTECT AMERICAN BUSINESS.

Send them home lets find out for sure!
Heard on the news we are about to get 1,000 Iraqies a month now, they can replace the illegals. If they work!
Probably to much to hope for our government will set them up in homes free healthcare, grants for business and our troops will still be fighting their war! While their young men come hide in the USA.

Our total gross domestic product is $13T. If we take these claims at face value - that it would cost $1.8T to deport them - then this should be Exhibit A in the criminal case against our government. How is it not high treason to let a country be so at the mercy of foreign nationals?

But in reality, I don't think illegal aliens will affect our economy very much. I think the relief that mass deportations will bring to our social services could (barring government mismanagement) supercharge our economy via a decreased need for taxes. Less taxes mean more disposable income. That is just one of the benefits that mass deportations will bring.

Why is any economic report done by illegal alien supporting groups receiving any coverage when these people...

1. Obviously have an agenda and
2. Are completely unqualified to release economic reports?

W

When our existing infrastructure is stretched to its limits and continued population influx forces expensive new projects then WE ARE IN A BIG DEFICIT!! Unions and government favorited contractors would be the biggest benficiaries and they are stamping their collective feet for Open Borders. And according to their biggest shill, the New York Times, we need a spending spree of 11 Trillion dollars to for this. And this would come out of mostly taxpayer funds.

The idiot who wrote this can't see the forest for the trees.

The Perryman Group: http://www.perrymangroup.com

Has notes and links to Trans Texas Corridor as a permanent link on main page. Oh no, there's no bias in the study.

One of eight people in the U.S. is an immigrant, according to the Perryman report, and about one-third of those are undocumented. The nation has about 8.1 million undocumented workers.

An explicit admission that only about 60% of those IAs in the country actually work. (8.1 million vs '12 million'; of course, we all know these are probably low-ball estimates anyway)

Texas, which has the second-largest undocumented immigrant population, about 1.4 million, could lose more than $220 million from its economy each year, along with about 1.1 million jobs, according to the report.

So.... are they saying each of those jobs only provides a net input into the economy of $200 per year??? ($200 million / 1.1 million jobs)
What's the point? We need slaves???


And, no mention of education of IAs in this study - which is VERY misleading. Each elementary school child costs a local school district about $8000-9000 per year to educate. At the same time, many IAs are not homebuyers, but rent. Adding on top of that, consider how much an IA would have to earn to be able to kick in (in terms of income taxes, assuming of course, these are being paid <somehow>... - on the low-end $8000 but, in the case of more than one child, maybe $16000 or even more than $20000 for 3 or more. Based on the education of children and the fact that low-wage renters NEVER pay into the system enough to cover the education costs alone, it is net loss in terms of economics.


...Someone issue the obligatory 'courtesy flush' here please....thanks.

The report, conducted by the Waco-based Perryman Group for Americans for Immigration Reform

If they can issue a report time for Alipac to issue one