Govermental Cost of Illegal Immigrants

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.

· 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.

The immigrant-illegal con game is so predictable: They whine about coming here b/c they want only to get "menial jobs" to help out their poverty-stricken families in "underdeveloped countries."

Then, before you can say "hasta la vista, baby," working class born-American taxpayers are footing the bills for immigrants' medical needs, welfare, food stamps, housing, all levels of schooling including college, child care, maternity benefits, and so on.

Taxpayers are subsidizing immigrants' daily food intake, housing, reduced mortgages, free medical, education, reduced in-state tuition and out of state tuition fees. We also foot the legal bills when they start suing if we don't provide these goodies pronto.

Lastly, and more ominous, is that they become hyphenated voting blocs, demanding representation in the US Congress, state legislatures, and beyond, so that they can get even more government benefits. They bring with them their utter contempt for our efforts to maintain a civilied society under our Constitution.

OK, did I hear you say "underdeveloped countries?"

Ha.

Mexico has more "Forbes" billionaires, 11, than all but eight other nations. It has more billionaires than Saudi Arabia, Switzerland or Taiwan. It also has more than 85,000 millionaires.

According to a CNN report, Mexico sits on oil reserves worth about $400 billion, but Mexico's state-owned oil company, Pemex, doesn't have the investment funds to tap those reserves, and Mexico's Congress refuses to allow foreign investment in Pemex. However, some observers say this is due to Mexican gov't corruption, and the obsession to line their own pockets.

Adding insult to injury American taxpayers are subsidizing foreign aid transfers to Mexico. According to Visa International--which is now clamoring for a share of the transfer fees--American money sent South of the Border by illegals constitutes $38 BILLION this year alone constituting Mexico's second largest most profitable industry.

America should mandate proof for all cash transfers out of the US and/or force all transferring agencies -- banks, credit unions, Amex, Western Union to collect a substantial withholding tax -- 50%, say -- on every unexplained foreign remittance.

Mexico is a wealthy oil-producing neighbor of the US forces its poor people to flee to the US to work and then send money back home. Mexico has no welfare safety nets, health insurance for its people and no Social Security System.

The US even provides the defense umbrella to protect Mexico, so they have no real defense expenses.

America needs to seal our borders and let Vincente Fox know that we will cut off every penny in aid he gets from the United States.

The government of Mexico---with all of its oil revenue----needs to be taking care of its own people, not "outsourcing' them as wards of American taxpayers. Mexico can well-afford it.

Ths unmitigated contempt for America, and working-class, tax-paying Americans, cannot go unchallenged. The sense of entitlement these people have is outrageous-----that the rest of us owe them a living. And that US citizens, and the US government, exist for their convenience while they break our laws, at will.

The only thing between us and camouflage-clad federales patrolling our streets with shoulder holsters is the sacrosanct US rule of law.

Mexico is Rich- Mexican wealthy play American taxpayers for suckers

SOURCE http://www.limitstogrowth.org/ | 2005 | Brenda Walker

Certainly there are many poor people in Mexico, since perhaps half the country lives in poverty. However, the nation as a whole is quite rich — see the documented facts listed below — and could well finance the sort of improvements in education and infrastructure that would better the living standards of all Mexicans. But the Mexican ultra-rich, like telecommunications magnate Carlos Slim shown here, don't like to tax themselves for investment the country badly needs for infrastructure and education, and it helps them greatly that the American taxpayer has been forced to support Mexicans living in the United States.

Interestingly, the Forbes list of billionaires published in 2006 showed Carlos Slim moving up to the number three spot among the world's richest men. Every dollar spent in U.S. taxes for social services for illegal aliens frees up additional cash to be sent south as part of the annual remittances which provided $20 billion in 2005. According to the CNN news show Lou Dobbs Tonight (3/21/05), "Remittances, as they're called, are expected to become Mexico's primary source of income this year, surpassing the amount of money that Mexico makes on oil exports for the first time ever."

So when el Presidente Vicente Fox complains that the "dignity" of Mexicans living illegally in America requires that they receive free healthcare on the U.S. taxpayer's dime, he is really talking about increased remittances to keep their whole corrupt system afloat.

Consider these relevent facts:

• Mexico has the second-highest highest Gross Domestic Product in Latin America, after being #1 for several years over second-place Brazil.

• When measured in GDP per capita, Mexico ranks #1 as of 2005, ahead of Chile and Venezuela.

• According to Forbes magazine, a substantial proportion of Latin American billionaires, 10 out of 26, were Mexican as of 2005.

• Mexico raises less revenue through taxation than nearly any other Latin American country, just 12 percent which is one reason why the nation's wealth is not better utilized. By comparison, the United States takes in 25-28 percent of its gross domestic profit in taxes. Even Brazil taxes itself at twice the Mexican rate.

• Economist Gary Hufbauer of the Institute for International Economics has remarked, "It's up to Mexico to solve its problem, and basically the wealthy classes do not want to tax themselves, period. While I'm not usually an advocate for larger government, Mexico is a country where public investment, done wisely, could pay huge dividends."

• Mexico expert Prof. George Grayson of William and Mary College calls Mexico an "immensely wealthy nation."

• Mexico's economy is the world's tenth largest.

• When the ruling party needed a hefty sum for the 1994 election, Presidente Salinas leaned on a group of rich businessmen to write $25 million checks each at an infamous dinner party, where contributions totaled a staggering $750 million by evening's end. Compare that with the measly $150 million campaign chest in spring 2004 that President Bush had accumulated after three years in office.

• Freedom House notes the cost of corruption: "According a recent study by the Mexico chapter of Transparency International, some $2.3 billion-approximately 1 percent-of the country's economic production goes to officials in bribes, with the poorest families paying nearly 14 percent of their income in bribes."

• Ricas y Famosas — Rich and Famous is a book of photos that takes a peek at the hidden world of the Mexican ultra-rich. Photographer Daniela Rossell used her membership in the exclusive club to reveal the decadent lifestyles of blonde women in gold lamé. It is a shocking view of the most extreme ostentatious wealth among great poverty.

• Sure Things in Mexico: Death, Taxes and Evasion According the recent rankings released from the IMD International, the Switzerland-based International Institute for Management Development placed Mexico at 56 out of 60 economies examined, largely because of a dearth of investment in everything from infrastructure to education. Due to its pathetic tax collection, Mexico cannot even buy schoolbooks or pay its police enough to live on, much less invest in its future.

• Lou Dobbs Tonight Transcript (12/16/04) The CNN news show shines a light on Mexican wealth. Particularly noteworthy is Prof. Grayson's remark: "There is a small economic elite who live like maharajas, and there's a political elite that protects them. Our border provides an escape valve which really lets the Mexican political and economic elite off the hook in terms of providing opportunities for their own people."

• While US Focuses on Iraq, Mexico is Collapsing June, 2005, and the symptoms of Mexico's failure as a state are accumulating. The recent takeover of border city Nuevo Laredo by the Mexican army because of the breakdown in law and order was so obvious.

Interestingly, Defense chief Donald Rumsfeld is guided by a secret Pentagon report which identifies Mexico as a potential failed state in the making.

For more, read "Mexico's Rich Don't Like To Pay Taxes — They Think You Should."

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