Posted on 04/04/2006 6:51:20 PM PDT by cowboy_code
Center for Immigration Studies WASHINGTON (August 25, 2004)
A new study from the Center for Immigration Studies is one of the first to estimate the impact of illegal immigration on the federal budget. Based on Census Bureau data, the study estimates that households headed by illegal aliens used $10 billion more in government services than they paid in taxes in 2002. These figures are only for the federal government; costs at the state and local level are also likely to be significant. The study also finds that if illegals were given amnesty, the fiscal deficit at the federal level would grow to nearly $29 billion.
Among the findings:
· Illegal alien households are estimated to use $2,700 a year more in services than they pay in taxes, creating a total fiscal burden of nearly $10.4 billion on the federal budget in 2002.
· Among the largest federal costs: 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).
· If illegal aliens were legalized and began to pay taxes and use services like legal immigrants with the same education levels, the estimated annual fiscal deficit at the federal level would increase from $2,700 per household to nearly $7,700, for a total federal deficit of $29 billion.
· With nearly two-third of illegals lacking a high school diploma, 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 their unwillingness to work.
· Amnesty increases costs because illegals would still be largely unskilled, and thus their tax payments would continue to be very modest, but once legalized they would be able to access many more government services.
· The fact that legal immigrants with little schooling are a fiscal drain on federal coffers does not mean that legal immigrants overall are a drain. Many legal immigrants are highly skilled.
· Because many of the costs are due to their U.S.-born children, who are awarded U.S. citizenship at birth, barring illegals themselves from federal programs will not significantly reduce costs.
· Although they create a net drain on the federal government, the average illegal household pays more than $4,200 a year in federal taxes, for a total of nearly $16 billion.
· However, they impose annual costs of more than $26.3 billion, or about $6,950 per illegal household.
· About 43 percent, or $7 billion, of the federal taxes illegals pay go to Social Security and Medicare.
· Employers do not see the costs associated with less-educated immigrant workers because the costs are spread out among all taxpayers.
Why Legalization Is So Costly. Costs rise unavoidably because amnesty will not change the low education levels of illegal aliens or the fact that the American economy offers such workers very limited opportunities, regardless of legal status. The vast majority of illegal aliens will continue to have very low incomes, and make very modest tax payments. However, legal status would allow them to use many more programs. We know that costs would rise dramatically because legal immigrants with the same levels of education make extensive use of public services. Thus, even though we estimate that average tax payments would rise by 77 percent, we also find that costs would rise 117 percent. To understand why this happens, it is helpful to consider a program like the Earned Income Tax Credit, which pays cash to low-income workers. Illegals currently account for only 1.5 percent of the program’s total costs, but if they were legalized their use of the program would grow tenfold because with legal status they would no longer need stolen or bogus Social Security numbers to get the credit. This dramatic rise in costs is not due to laziness on the part of immigrants. In fact, only those who work receive the EITC. The dramatic rise in costs simply reflects the low educational attainment of illegals and their resulting low incomes.
If Illegals Stay, So Will the Costs. To the extent that policy makers have considered the fiscal costs of illegal immigration, they have generally tried to reduce the costs while allowing illegals to remain. But this strategy has not been effective because the average illegal already receives less than half as much in services from the federal government as do other households. Moreover, many of the costs are due to their U.S.-born children, who are awarded American citizenship at birth under current law. Other programs are simply too politically sensitive to cut, such as the Women, Infants and Children nutrition program. And others costs are unavoidable, such as incarcerating illegals who have been convicted of crimes. Conversely, enforcing immigration laws is both popular with voters and administratively more feasible. There are really only two options: either we begin to enforce the law, significantly reducing the number of illegals in the country, or we accept the costs created by the presence of a large pool of unskilled workers.
Results Similar to Other Studies. A 1997 report by the National Research Council (NRC) on the fiscal impact of immigrants concluded that education levels and resulting income are the primary determinants of tax payments and service use, which is also a central finding of this report. The results of this study closely match the findings of a 1998 Urban Institute study. Our estimated average tax payment for illegal households in New York State is almost identical to that of the Urban Institute, when adjusted for inflation. The results of this study are also buttressed by an analysis of illegal alien tax returns done by the Inspector General’s Office of the Department of Treasury in 2004, which found that about half had no federal income tax liability, very similar to our findings of 45 percent.
The panel discussion is open to the public. For more information, contact Steven Camarota.
they don't care ..period. we've been sold down the river ...
The Senate bill gives in state tuition to illegals (another perk to get more to come here)
The Senate knows EXACTLY what it is doing...and it will never
do the bidding of 'we the people' who elected them...
The march to the beat of different drummers 'we than the people'..
As we can all see, Rule of Law only applies to American citizens. Wonder if we could get amnesty if we didn't pay taxes? LOL only it isn't too funny!
I went back to college after 20 years and pay a FOURTUNE to get my certification . I've been paying state taxes in NJ for 37 years. If they start giving illegals FREE college I'm going to go nuts and demand my tuition back.I'm serious .
"Doesn't that imply an income at least $35K?"
We could erect a magnificent fence for a heckuva a lot less that $10 Billion and that's a one time cost. After that it's a net money maker each year. Don't stop the immigration; control the immigration.
Bump.
bump
and here's at least one other cowboy code:
http://courses.cs.vt.edu/~cs3604/lib/WorldCodes/Cowboy.Code.html
I haard some more great news on KFI in LA tonight. Border Patrol is reporting that illegals caught the past few days are telling them that the media in Mexico is telling them that an amnesty is imminent and they need to head for the border.
Call your congresscritters and thank them for this.
http://www.senate.gov
Also, a lot of Mexicans file their taxes and claim all their kids whether in Mexico or the US. Many of them get back many thousands of $$ for they show not making much. It's part of that under income group refund. I worked for the IRS for a tax season. Most of these taxes are made out by Mexican accountants.
It's robbery.
Bump
The $10 billion a year hidden tax means that "cheap" head of lettuce is really outrageously expensive.
The overlooked part of this whole fiasco is that, if the illegals had to remain in their country and seek economic opportunity, they would be an important source of pressure to develop their own countries and reform their gov'ts. The US, by accepting them, reduces the possibility of improvement in the countries from which they come. Mexicans would not be happy if they could look across their northern border and see freedom's fruits, but could not walk across the border and gather them to take home. That unhappiness could change Mexico for the better--it would not make Mexico any worse.
In other news, accusing people of being intoxicated (an old bayourod tactic) is moving on up the list again as favorite OBL tactics.
Many think its already too late. Politicians care about one thing: votes. Ethics? Morals? Who needs them if youre a politician in South Calipornia.
Well, baoyurod was banned. I am reasonably sure that he actually resurfaced a few weeks ago as bayourant and managed to linger on for a few months. It was active until a few weeks ago, anyway. I just punched the profile up here tonight and it came up that bayourant was banned or suspended as well.
A number of us had pretty much nailed that they were the same poster, though.
A number of us had pretty much nailed that they were the same poster, though.
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