Immigration Reform Essay
Immigration Reform and the Economic Impact of Tax Revenues
DeVry University
Immigration Reform
The occurrence of undocumented or illegal immigration and immigration policy reform is a highly contested issue in the United States today. The US Census Bureau surveyed in 2010 that there were over 309 million people in the United States. The numbers of immigrants were surveyed to be about 40 million and it is estimated that about 11 million undocumented immigrants are in this country. The population of immigrants in California is the largest in the nation, with over twenty-five percent of all immigrants living here. While being registered as an Independent and primarily voting as a Republican, I have been against …show more content…
Immigration Amnesty and have favored an Immigration Policy that did not reward those for being in this country illegally. Anti-Immigration groups have implied that our schools are overcrowded, the lines in our emergency rooms are longer, our neighborhoods have more crime, immigrants take our jobs and our taxes are higher because of illegal immigration. After my initial research I could not understand how 2.8% of the total population could overburden our social resources. Would our tax revenues actually increase if there was a process for them to start citizenship? The battle for Immigration Reform has divided our country for far too long and has assisted in obstructing our economy. This inaction keeps illegal immigrants in the status quo and will systematically hindered our economic progress and stall the social progress of generations to come.
I have been influenced by a media that broadcasts that most right wing conservatives staunchly opposed immigration reform and say it would break our Social Security system and we would pay out more out in taxes than our economy receives.
Others say that illegals would be a drain on our economy by overrunning our social programs. Mark Krikorian, executive director of the Center for Immigration Studies (CIS) says. “If they’re legalized then they can collect Social Security and guess what? People with low incomes get more out of Social Security, generally speaking, than they pay in,” he argues. "So the Social Security argument is actually an argument for keeping illegal immigrants illegal because that way they won’t ever collect Social Security." (Goodkind, n.d.). I had a conversation with my realtor that was naturalized as a citizen, and he was very adamant that when he sponsored his aging aunt from the Philippians she automatically started receiving Supplemental Security Income (SSI). The CIS and the Federation for American Reform have used this research to defend their activities against illegal immigration and presented data indicating illegal immigration damages our society and economy. Their investigations have stated that undocumented immigrants cost the US economy “at least 10 billion more than they contribute to the economy” (Correa-Cabrera and Rojas-Arenza, 2012). CIS goes further and claims that if an amnesty policy is approved that the cost to taxpayers will triple. They estimate that the “average illegal immigrant family uses $2700 more in services than it pays in taxes”. (Correa-Cabrera and Rojas-Arenza,
2012)
Americans are concerned about illegal immigration as confirmed by a recent survey. Forty four percent of the people polled said that illegal immigration was “overburdening government services” (Fox, 2013), but a poll that was taken three years earlier found that 84% believed that illegal immigrants were overburdening services then. Another survey that was conducted in 2010 discovered “86% of Republicans, 64% of Democrats and 76% of Independents” had agreed with the question when asked “Illegal immigrants do more to weaken the U.S. economy because they don’t pay taxes but use public services” (Fox, 2013). In a different survey, 84% of those polled were “concerned that illegal immigrants might be putting an unfair burden on U.S. schools, hospitals and government services” (Fox, 2013). Senator Jeff Sessions (R.-Ala.) was so concerned he said “Many of the 11,000,000 undocumented people don’t have high school diplomas. Making them eligible for welfare, social services, and healthcare that will be hugely expensive”. (Fox, 2013)
On the other hand, the liberal left has sponsored several studies that have supported the complete opposite, claiming that immigration reform would boost our tax base. A recent study by the Institute on Taxation and Economic Policy, however, indicates the economic impact of legalizing immigrants is a positive one, not the financial drain some have claimed. The report finds that “giving immigrants a chance to work legally in the U.S. could help boost state and local revenues by $2 billion a year” (Singer, 2013). They also claim that State income tax profits would increase by an estimated $1.6 billion, sales tax contributions would increase by $420 million. The report goes further and states that “immigrants would pay an additional $76 million in property taxes” (Singer, 2013). The states with comparatively low immigrant populations but no sales taxes will benefit the most from legalizing the 11 million immigrants. In Montana, for example, “immigration reform could add a 50% increase in the amount of taxes immigrants pay.” (Singer, 2013)
I have met students that had attended high school with my daughter that are undocumented and have only known living in the United States. They have graduated high school and are starting to attend community college but yet do not have a clear plan in life on what they realistically can do. They have the stigma of not being here legally and the barriers that causes them to work twice as hard to overcome them. They all have dreams very similar to my daughter, they would like to get a college degree and be successful in life. Can we make this a win-win situation and have a positive impact in our economy and in these young adults’ lives? Most will probably never attain a college degree and will probably work for minimal jobs either with illegal documents or under the table.
A recent RAND Study reported that if the college graduation rates of Hispanic and African Americans would increase, the spending on public education would also rise and “these costs would be offset by savings in public health and welfare expenditures and increase tax revenues resulting in higher incomes” (Eusebio and Mendoz, 2013). The report determined that immigrants with college degrees will contribute “$5300 more in taxes and require $3900 less in government expenses each year” (Eusebio, and Mendoz, 2013) when they compared the cost to a high school dropout. The federal policy, Deferred Action for Childhood Arrivals (DACA) was passed in June 2012 and created new opportunities for 1.9 million undocumented children who were brought to the United States before the age of sixteen. They must have lived in the US continuously for at least five years and graduated from high school or received a GED. These immigrants children that qualify are eligible and can apply for a temporary two-year reprieve from being deported. They can also request a work permit and “DACA will provide beneficiaries a Social Security Number, temporary lawful presence, and a more tangible future in the United States” (Eusebio and Mendoz, 2013). Unfortunately this policy does not offer or provide the right to use federal or state-based financial aid. It is estimated that every year 65,000 to 80,000 illegal immigrant students graduate high school in the United States and are limited from fully taking part in the American way of life. Most did not have a role in the choice to immigrate or remain in the United States illegally and endure incredible social, financial, and legal barricades. It is estimated that almost 30% of the undocumented children are living below the poverty limit. These children live in endless distress of being deported and being separated from their family. The federal government guarantees every student a free public education but they have immeasurable challenges trying to pursue a college education.
With this in mind, economists have largely had confidence in liberal immigration. They have repeatedly said that as immigration increases, the economy also increases, and productivity improves. But the ongoing debate is not about the size of immigration but the amount of benefit and who the beneficiaries are. One might argue that people immigrate to the United States because of the economic opportunities that are available. The wages that a Mexican immigrant can expect in the U.S. is over 2 ½ times more than received in Mexico. The wage differences are even higher from Asian immigrants from Vietnam, Philippines and even India and they can expect from 4 to 6 ½ times more in wages than from their native countries. This is a huge draw for immigrants to immigrate to the U.S. and this will benefit the economy because they fill employment opportunities that most Americans do not want to work in. This confirms, “that immigrants disproportionately are represented in the lowest and highest skilled occupations” (Nowrasteh and Cole, 2013) this is due to the fact that the supply of workers and demand for them is greatest in those areas of employment. The different skills and education that immigrants bring actually increases American citizens’ wages. They usually have an advantage where jobs “require English communication skills” (Nowrasteh and Cole, 2013) and are paid higher wages. Immigrants usually have low skills and poor English language skills and have a “comparative advantage in lower paid jobs that require brawn” (Nowrasteh and Cole, 2013). This causes American workers to move into skilled management jobs where they can use their language skills more productively.
Furthermore, in 1986 when President Ronald Reagan passed his Immigration Reform, immigrants saw their wages increase because of their legal work status. The Labor Department conducted a study in 1995 and found that those immigrants responded to legalized status by investing in their skills and education. There was an outpouring investment for language skills, education, and job training “specifically, 43% of Mexican men undertook some kind of skilled enhancement training following legalization” (Nowrasteh and Cole, 2013). If a comprehensive immigration reform bill were to succeed and pass today, the results are expected to be the same. This would allow the 80,000 undocumented immigrants that graduate every year to attend job training, college, and other educational opportunities. I now have come to the conclusion that passing some form of immigration reform would have a positive effect on our economy by generating new taxes and increasing wages. The battle for Immigration Reform has divided our country for far too long and has assisted in obstructing our economy. This inaction keeps illegal immigrants in the status quo and will systematically hindered our economic progress and stall the social progress of generations to come.
References:
1. Singer, A. (2013) Institute on Taxation and Economic Policy
2. Goodkind, N. (n.d.). Retrieved from http://finance.yahoo.com/blogs/daily-ticker/social-security-risk-impact-immigration-reform-124712696.html
3. Fox, L. (2013). Reform Means Revenue. U.S. News Digital Weekly, 5(28), 8
4. Nowrasteh, A. and Cole, S. (2013) Open the Gates, USA Today
5. Correa-Cabrera, G. and Rojas-Arenza, M. (2012). The Mathmatics of Mexico-US Immigration Policy. Routledge Policy Studies
6. Eusebio, C. and Mendoz, F. (2013). The Case for Undocumented Students in Higher Education. Educators for Fair Consideration (E4FC)
DeVry University
Immigration Reform
The occurrence of undocumented or illegal immigration and immigration policy reform is a highly contested issue in the United States today. The US Census Bureau surveyed in 2010 that there were over 309 million people in the United States. The numbers of immigrants were surveyed to be about 40 million and it is estimated that about 11 million undocumented immigrants are in this country. The population of immigrants in California is the largest in the nation, with over twenty-five percent of all immigrants living here. While being registered as an Independent and primarily voting as a Republican, I have been against …show more content…
Immigration Amnesty and have favored an Immigration Policy that did not reward those for being in this country illegally. Anti-Immigration groups have implied that our schools are overcrowded, the lines in our emergency rooms are longer, our neighborhoods have more crime, immigrants take our jobs and our taxes are higher because of illegal immigration. After my initial research I could not understand how 2.8% of the total population could overburden our social resources. Would our tax revenues actually increase if there was a process for them to start citizenship? The battle for Immigration Reform has divided our country for far too long and has assisted in obstructing our economy. This inaction keeps illegal immigrants in the status quo and will systematically hindered our economic progress and stall the social progress of generations to come.
I have been influenced by a media that broadcasts that most right wing conservatives staunchly opposed immigration reform and say it would break our Social Security system and we would pay out more out in taxes than our economy receives.
Others say that illegals would be a drain on our economy by overrunning our social programs. Mark Krikorian, executive director of the Center for Immigration Studies (CIS) says. “If they’re legalized then they can collect Social Security and guess what? People with low incomes get more out of Social Security, generally speaking, than they pay in,” he argues. "So the Social Security argument is actually an argument for keeping illegal immigrants illegal because that way they won’t ever collect Social Security." (Goodkind, n.d.). I had a conversation with my realtor that was naturalized as a citizen, and he was very adamant that when he sponsored his aging aunt from the Philippians she automatically started receiving Supplemental Security Income (SSI). The CIS and the Federation for American Reform have used this research to defend their activities against illegal immigration and presented data indicating illegal immigration damages our society and economy. Their investigations have stated that undocumented immigrants cost the US economy “at least 10 billion more than they contribute to the economy” (Correa-Cabrera and Rojas-Arenza, 2012). CIS goes further and claims that if an amnesty policy is approved that the cost to taxpayers will triple. They estimate that the “average illegal immigrant family uses $2700 more in services than it pays in taxes”. (Correa-Cabrera and Rojas-Arenza,
2012)
Americans are concerned about illegal immigration as confirmed by a recent survey. Forty four percent of the people polled said that illegal immigration was “overburdening government services” (Fox, 2013), but a poll that was taken three years earlier found that 84% believed that illegal immigrants were overburdening services then. Another survey that was conducted in 2010 discovered “86% of Republicans, 64% of Democrats and 76% of Independents” had agreed with the question when asked “Illegal immigrants do more to weaken the U.S. economy because they don’t pay taxes but use public services” (Fox, 2013). In a different survey, 84% of those polled were “concerned that illegal immigrants might be putting an unfair burden on U.S. schools, hospitals and government services” (Fox, 2013). Senator Jeff Sessions (R.-Ala.) was so concerned he said “Many of the 11,000,000 undocumented people don’t have high school diplomas. Making them eligible for welfare, social services, and healthcare that will be hugely expensive”. (Fox, 2013)
On the other hand, the liberal left has sponsored several studies that have supported the complete opposite, claiming that immigration reform would boost our tax base. A recent study by the Institute on Taxation and Economic Policy, however, indicates the economic impact of legalizing immigrants is a positive one, not the financial drain some have claimed. The report finds that “giving immigrants a chance to work legally in the U.S. could help boost state and local revenues by $2 billion a year” (Singer, 2013). They also claim that State income tax profits would increase by an estimated $1.6 billion, sales tax contributions would increase by $420 million. The report goes further and states that “immigrants would pay an additional $76 million in property taxes” (Singer, 2013). The states with comparatively low immigrant populations but no sales taxes will benefit the most from legalizing the 11 million immigrants. In Montana, for example, “immigration reform could add a 50% increase in the amount of taxes immigrants pay.” (Singer, 2013)
I have met students that had attended high school with my daughter that are undocumented and have only known living in the United States. They have graduated high school and are starting to attend community college but yet do not have a clear plan in life on what they realistically can do. They have the stigma of not being here legally and the barriers that causes them to work twice as hard to overcome them. They all have dreams very similar to my daughter, they would like to get a college degree and be successful in life. Can we make this a win-win situation and have a positive impact in our economy and in these young adults’ lives? Most will probably never attain a college degree and will probably work for minimal jobs either with illegal documents or under the table.
A recent RAND Study reported that if the college graduation rates of Hispanic and African Americans would increase, the spending on public education would also rise and “these costs would be offset by savings in public health and welfare expenditures and increase tax revenues resulting in higher incomes” (Eusebio and Mendoz, 2013). The report determined that immigrants with college degrees will contribute “$5300 more in taxes and require $3900 less in government expenses each year” (Eusebio, and Mendoz, 2013) when they compared the cost to a high school dropout. The federal policy, Deferred Action for Childhood Arrivals (DACA) was passed in June 2012 and created new opportunities for 1.9 million undocumented children who were brought to the United States before the age of sixteen. They must have lived in the US continuously for at least five years and graduated from high school or received a GED. These immigrants children that qualify are eligible and can apply for a temporary two-year reprieve from being deported. They can also request a work permit and “DACA will provide beneficiaries a Social Security Number, temporary lawful presence, and a more tangible future in the United States” (Eusebio and Mendoz, 2013). Unfortunately this policy does not offer or provide the right to use federal or state-based financial aid. It is estimated that every year 65,000 to 80,000 illegal immigrant students graduate high school in the United States and are limited from fully taking part in the American way of life. Most did not have a role in the choice to immigrate or remain in the United States illegally and endure incredible social, financial, and legal barricades. It is estimated that almost 30% of the undocumented children are living below the poverty limit. These children live in endless distress of being deported and being separated from their family. The federal government guarantees every student a free public education but they have immeasurable challenges trying to pursue a college education.
With this in mind, economists have largely had confidence in liberal immigration. They have repeatedly said that as immigration increases, the economy also increases, and productivity improves. But the ongoing debate is not about the size of immigration but the amount of benefit and who the beneficiaries are. One might argue that people immigrate to the United States because of the economic opportunities that are available. The wages that a Mexican immigrant can expect in the U.S. is over 2 ½ times more than received in Mexico. The wage differences are even higher from Asian immigrants from Vietnam, Philippines and even India and they can expect from 4 to 6 ½ times more in wages than from their native countries. This is a huge draw for immigrants to immigrate to the U.S. and this will benefit the economy because they fill employment opportunities that most Americans do not want to work in. This confirms, “that immigrants disproportionately are represented in the lowest and highest skilled occupations” (Nowrasteh and Cole, 2013) this is due to the fact that the supply of workers and demand for them is greatest in those areas of employment. The different skills and education that immigrants bring actually increases American citizens’ wages. They usually have an advantage where jobs “require English communication skills” (Nowrasteh and Cole, 2013) and are paid higher wages. Immigrants usually have low skills and poor English language skills and have a “comparative advantage in lower paid jobs that require brawn” (Nowrasteh and Cole, 2013). This causes American workers to move into skilled management jobs where they can use their language skills more productively.
Furthermore, in 1986 when President Ronald Reagan passed his Immigration Reform, immigrants saw their wages increase because of their legal work status. The Labor Department conducted a study in 1995 and found that those immigrants responded to legalized status by investing in their skills and education. There was an outpouring investment for language skills, education, and job training “specifically, 43% of Mexican men undertook some kind of skilled enhancement training following legalization” (Nowrasteh and Cole, 2013). If a comprehensive immigration reform bill were to succeed and pass today, the results are expected to be the same. This would allow the 80,000 undocumented immigrants that graduate every year to attend job training, college, and other educational opportunities. I now have come to the conclusion that passing some form of immigration reform would have a positive effect on our economy by generating new taxes and increasing wages. The battle for Immigration Reform has divided our country for far too long and has assisted in obstructing our economy. This inaction keeps illegal immigrants in the status quo and will systematically hindered our economic progress and stall the social progress of generations to come.
References:
1. Singer, A. (2013) Institute on Taxation and Economic Policy
2. Goodkind, N. (n.d.). Retrieved from http://finance.yahoo.com/blogs/daily-ticker/social-security-risk-impact-immigration-reform-124712696.html
3. Fox, L. (2013). Reform Means Revenue. U.S. News Digital Weekly, 5(28), 8
4. Nowrasteh, A. and Cole, S. (2013) Open the Gates, USA Today
5. Correa-Cabrera, G. and Rojas-Arenza, M. (2012). The Mathmatics of Mexico-US Immigration Policy. Routledge Policy Studies
6. Eusebio, C. and Mendoz, F. (2013). The Case for Undocumented Students in Higher Education. Educators for Fair Consideration (E4FC)