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The High Cost of Cheap Labor - Illegal Immigration and the Federal Budget
Center for Immigration Studies ^ | August, 2004 | CIS

Posted on 09/05/2007 12:34:14 PM PDT by khnyny

This study is one of the first to estimate the total impact of illegal immigration on the federal budget. Most previous studies have focused on the state and local level and have examined only costs or tax payments, but not both. Based on Census Bureau data, this study finds that, when all taxes paid (direct and indirect) and all costs are considered, illegal households created a net fiscal deficit at the federal level of more than $10 billion in 2002. We also estimate that, if there was an amnesty for illegal aliens, the net fiscal deficit would grow to nearly $29 billion.

Among the findings:

Households headed by illegal aliens imposed more than $26.3 billion in costs on the federal government in 2002 and paid only $16 billion in taxes, creating a net fiscal deficit of almost $10.4 billion, or $2,700 per illegal household.

Among the largest costs are Medicaid ($2.5 billion); treatment for the uninsured ($2.2 billion); food assistance programs such as food stamps, WIC, and free school lunches ($1.9 billion); the federal prison and court systems ($1.6 billion); and federal aid to schools ($1.4 billion).

With nearly two-thirds of illegal aliens lacking a high school degree, 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 heavy use of most social services.

On average, the costs that illegal households impose on federal coffers are less than half that of other households, but their tax payments are only one-fourth that of other households.

(Excerpt) Read more at cis.org ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: aliens; illegalimmigration; immigrantlist; immigration
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1 posted on 09/05/2007 12:34:16 PM PDT by khnyny
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To: Froufrou; panthermom

Ping.


2 posted on 09/05/2007 12:36:04 PM PDT by khnyny (Hillary has given Bill a new title: Chief Flying Monkey)
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To: khnyny

But we don’t have $10 lettuce, right?


3 posted on 09/05/2007 12:37:15 PM PDT by Sybeck1 (I like Rodney Carrington's recipe for World Peace.)
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To: khnyny
To the US government.
We've got children here.
4 posted on 09/05/2007 12:37:59 PM PDT by kinoxi
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To: Sybeck1
"But we don’t have $10 lettuce, right?"

These criminals who hire illegals actually believe they are extorting us, somehow, with their pathetic little farm products.

Like a world without lettuce or any other food item is so awful and unthinkable, that I would pay any amount - and sell out my country - just to keep them in business.

5 posted on 09/05/2007 12:50:04 PM PDT by SteveMcKing
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To: khnyny

This should be required reading for every member of congress. However, I’m sure that they already know it. Pro-amnesty legislators just want to kow-tow to big business and force the taxpayers to pay the tab.


6 posted on 09/05/2007 12:50:35 PM PDT by tennteacher (Duncan Hunter '08)
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To: Sybeck1

Considering I buy about 1 head of lettuce a month, $10 lettuce would be $120 per year. I live in California where the estimate of what illegals cost each taxpayer was right around $2000 per yr.
$10 a head lettuce would be a real bargain.


7 posted on 09/05/2007 12:51:33 PM PDT by sheana
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To: kinoxi

Businesses like illegals as they can pay them low and let the taxpayer pay for health care, welfare, etc.

Watch for big businesses to get behind Hillerycare. Thus offloading their healthcare costs onto the taxpayers.


8 posted on 09/05/2007 12:51:50 PM PDT by OldArmy52 (Bush's Legacy: 100 million new Dem voters in next 20 yrs via the 2007 Amnesty Act.)
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To: khnyny

I thought we pretty much had a national debate about cheap labor some time back. Seems to me that we had really cheap labor (ie, an upfront capital cost, with minimal ongoing expenses), then some people got all fired up about the immorality of cheap labor, then there were some absurd court findings that cheap laborers weren’t people, some idiotic rantings about states being the sole arbiters of who was a person and who was merely cheap labor, then the turds hit the turbine blades and we had a hugely expensive civil war to resolve the issue of “cheap labor.”

In the end, cheap labor ended up being not all that cheap.

And if we look at the aftermath of that previously imported cheap labor, it has been a financial drain upon this nation ever since.

When are we going to learn that, as a historical trend, cheap labor is never all that cheap?


9 posted on 09/05/2007 12:55:30 PM PDT by NVDave
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To: OldArmy52
Watch for big businesses to get behind Hillerycare. Thus offloading their healthcare costs onto the taxpayers.

Bingo!
10 posted on 09/05/2007 12:58:09 PM PDT by khnyny (Hillary has given Bill a new title: Chief Flying Monkey)
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To: sheana

I heard someone say that if a head of lettuce cost 1 dollar the labor cost was 4 cents. That’s all. So if wokers got double pay the cost fo lettuce would only be an additional 4 cents. Can anyone valdate this?


11 posted on 09/05/2007 12:59:06 PM PDT by Digger (If RINO is your selection, then failure is your election)
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To: NVDave
>And if we look at the aftermath of that previously imported cheap labor, it has been a financial drain upon this nation ever since.<

That is true. Here's the data.

LAPD Most Wanted = 74% Hispanic

Immigration Counters (Real-Time Data Resource Center)

The Unpleasant FACTS ARE

>>Both studies found that immigrants used government services at a greater rate than native-born residents did. The New Jersey study found, for instance, that the typical immigrant family received about $4,044 annually in government services, about 11 percent higher than the average native-born family. At the same time, immigrant households paid about 8 percent less in taxes. The net result was that “the average native household generated an annual fiscal surplus of $232” to government, while “the typical foreign household was a net burden of $1,484.” The gap was even wider in California, where immigrant households produced a net deficit of $3,463 each, because so much of that state’s recent immigration had been in the form of low-wage, low-skill workers.

Though the study did not distinguish between legal and illegal immigrants, it did break down foreign-born households by the regions of the world from which they had come. In both states, the study found the steepest deficit in Latin American households, which in New Jersey consumed 26 percent more in government expenditures than the average native-born family, but paid 38 percent less in taxes. By contrast, immigrant households in New Jersey that hailed from Europe or Canada actually consumed, on average, less in government services than the typical native-born family, and paid nearly as much in taxes.<<

Source: http://www.city-journal.org/html/eon2007-08-29sm.html

12 posted on 09/05/2007 1:00:06 PM PDT by B4Ranch ("Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: khnyny

“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 heavy use of most social services.”

I do appreciate the ping, khnyny! Ping me anytime!

But, if they’re paying taxes on low incomes, it’s revenue we wouldn’t have had if they hadn’t entered illegally. There’s no way it’s more of a loss than what we pay in entitlements. $2700 per household?!

CIS is perhaps not the most unbiased source for the data here, but it takes a really long time to research it through the state .orgs and they aren’t ever very current compared to CIS.

The true numbers are probably about double what CIS reports, just as they reported 11 billion illegals in 2006 and the number is closer to between 22 and 30 billion.


13 posted on 09/05/2007 1:02:45 PM PDT by Froufrou
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To: B4Ranch

In case I wasn’t clear, in my above posting I was talking about slavery and the costs to the US since 1865 of dealing with the aftermath of blacks imported from Africa as slaves.


14 posted on 09/05/2007 1:03:01 PM PDT by NVDave
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To: Sybeck1
But we don’t have $10 lettuce, right?

How much did you pay in to the IRS on April 15? You helped subsidize each and every one of those $2,700 per illegal households.

Maybe the lettuce wasn't $10 at the cash register, but you made up the difference with your IRS payment.
15 posted on 09/05/2007 1:03:30 PM PDT by TomGuy
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To: Sybeck1
But we don’t have $10 lettuce, right?

LoL. We have had Mexican migrant workers picking vegetables for decades. They are a drop in the bucket of the 12 million illegals here. The rest of them have come here in the last 6-7 years and are working constrruction and factory jobs so that the owners of Toll Brothers, Lennar, NV Homes, Hormel, Swift, et.al. can make more profits while charging the same high prices for their goods. Last year Toll Brothers' average profit per house was over $90,000. Yet they can't afford to pay American workers decent wages. Riiiiiiight.

16 posted on 09/05/2007 1:11:26 PM PDT by Dems_R_Losers (Thanks anyway, Nancy, but we already have a Commander-in-Chief!)
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To: NVDave

The costs to the US taxpayer are becoming unbearable.


17 posted on 09/05/2007 1:12:16 PM PDT by B4Ranch ("Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: khnyny
My friend was telling me about a discussion between her minister and a minister from the Hispanic community held in front of the church last Sunday.

She stated that this is not our country but God’s country and we need to embrace and help the Hispanic community (illegals included). She also said our economy would collapse if it weren't for the Hispanic workforce.

As a Christian I could not find fault with the idea of helping out our fellow man. I tried to explain to her that God does expect us to follow mans laws as well as his and the illegals have broken a number of laws by coming here illegally and getting illegal documents etc.

I also tried to explain to her about the impact they have on our social system....she was unwilling to even look @ another side to the situation.....

By the way she goes to the Presbyterian church PCUSA, a church I left because of their lack of biblical truths and teachings....

18 posted on 09/05/2007 1:12:28 PM PDT by Kimmers
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To: khnyny
My friend was telling me about a discussion between her minister and a minister from the Hispanic community held in front of the church last Sunday.

She stated that this is not our country but God’s country and we need to embrace and help the Hispanic community (illegals included). She also said our economy would collapse if it weren't for the Hispanic workforce.

As a Christian I could not find fault with the idea of helping out our fellow man. I tried to explain to her that God does expect us to follow mans laws as well as his and the illegals have broken a number of laws by coming here illegally and getting illegal documents etc.

I also tried to explain to her about the impact they have on our social system....she was unwilling to even look @ another side to the situation.....

By the way she goes to the Presbyterian church PCUSA, a church I left because of their lack of biblical truths and teachings....

19 posted on 09/05/2007 1:12:33 PM PDT by Kimmers
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To: Dems_R_Losers

I believe we are also going to find out that a large percentage of those who took out subprime mortgages in the last 3 years were illegals.


20 posted on 09/05/2007 1:13:08 PM PDT by Dems_R_Losers (Thanks anyway, Nancy, but we already have a Commander-in-Chief!)
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