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April 10, 2006: Illegal Immigration...The elephant in the room
The elephant in the room....
The reports of protests, walkouts, marches and general unease continue to grow with the continued debate of a new immigration bill making it a felony to be in the US illegally. Immigration has always been an issue close to my heart; I understand the plight of the people arriving in droves to make a better life for themselves, and also the plight of a nation overburdened by residents not equally contributing to the nations coffers.
I understand the need for inexpensive labor. I understand the need to clean up the mess left from years of irresponsible immigration policy, or lack thereof. Yet as I watch the current events unfold and hear the rhetoric of both sides, I feel like a child who has been given only part of the story and told, this is the problem, and this is the solution, don't ask any questions. As an adult, who knows the facts, I can tell you we are being sold a bill of goods.
I have in recent months criticized our President for his lack of initiative on border policy. I have been outraged by his lack of urgency in securing our borders and disgusted when I take a family member to the ER and have to wait three hours for sutures while hundreds of illegal immigrants utilize the ER for treatment of colds and flu as they know they will not be turned away.
Yet, as I write this, I have come to realize that he does in fact "get it" , but there is no easy fix.
Perhaps if the issues are laid out properly before us the answer will be clear, ...excuse me while I talk to myself for a bit.
PROBLEM 1: 12 million illegal immigrants who believe they ARE paying taxes.
Sales Tax
Taxes on payroll, with 99 deductions on a SS# that hundreds of people are using.Funds that while minute, can never be claimed.
Here is an example, taken from a payroll calculator...http://www.cpadirectory.com/cpaclie...cs/payroll.html
An employee making $500 per week/$1000 per pay period.
In the current scheme of things, an illegal will obtain a fraudulent SS card and gain employment using it. Knowing that he cannot file a claim at the end of the year on this fraudulent account he elects the maximum number of dependents (99) which makes him ineligible for local withholding, and the only taxes paid would be for FEDERAL Social Security and Medicare, both programs the worker knows he will never be able to use.
While the dollar amounts are not huge, (approx $50 for each federal and local taxes per pay period) the problem is this: The federal government does not reimburse the states for the cost of illegals on the state infrastructure. So while the Federal government has "something" contributed to SSI and Medicare, the state and local governments receive nothing, yet absorb ALL costs.
PROBLEM 2: 12 million illegal immigrants who do NOT want to become citizens.
Yep, I said it.
Commence hurling stones.
"Amnesty, give them all amnesty, they have been here for years!!"
It's the call I hear from my liberal friends and neighbors. If I really thought it would work, I'd be on the bandwagon too. Problem is , they don't WANT to be citizens.The Mexican people are very proud, and they love their homeland. Ask any illegal and they will tell you this. Look at the protestors. What flag are they waving? It is not the stars and stripes.They do not want to renounce their Mexican citizenship. Many of our illegal immigrants are property owners in Mexico.They also have an abundance of family and friends they provide for who still reside there. (further explained in problem #3) And why would they want to become legal citizens? What's in it for them? Really? They can stay and work here illegally paying little taxes yet receiving full government benefits (healthcare, education, food stamps-yes, they get them) OR you can become legal, pay more for what you are already receiving and loose your property rights in your home country.
Hmmm...tough decision Bob, but I think I'll take door number 1.
PROBLEM 3: 12 million illegal immigrants who do not contribute to our economy.
Now, before you start screaming about how they drive our economy by providing cheap farm and industrial labor...stop. I recognize those contributions. I am talking about the other side of the equation.
As outlined above, most immigrants have a slew of family back home. Most living in abject poverty. With little hope of making a decent living in Mexico, they arrive here and work, doing whatever they can to make money.I can understand that, I'm sure you can too, we all want what is best for our family.
Economics 101 shows us a simple circle where a worker is paid, he spends and that money goes to pay another worker and so on, an unending circle, or so it should be. Yet in the case of illegal immigrants, little is spent in the country of residence. Rent is usually shared between many, food consumption is little and purchase of durable goods is practically nonexistent.Approximately 70% of earned wages are sent back to Mexico, to fuel their economy and continue to disguise the gross inequities of that government.
Once again, I ask the question...Who looses here? Lets say it all together class...State and local government.
So, now we have the issue at hand. The bill making it a felony to be in country illegally. This bill, if actually enforced "could" help. Yet I feel compelled to point out, it will not help at the state or local level. This bill combined with W's "guest worker" program would force immigrants onto the tax roles.Yet, as we saw above, the same 99 dependents would be claimed and now this worker would have claim to the SSI and Medicare he has paid. Great. And what about the dollars earned? Still being sent to Mexico.
And now, I will introduce the elephant and the elephant gun.
If all of the above can be done by Mexican immigrants, what is there to stop those of other nations? What about those nations who seek to do us harm? We have fervently followed the money trail of terrorism, freezing assets funding terror groups, what of the billions of dollars being sent out of country each day?
Since our taxes are earnings based, once we have our paycheck it is ours to do with as we please. This of course includes sending our money to family and friends who might need it. Western Union charges $14 to send 500 to Mexico, and $43 to send the same amount to the middle east. How much of that fee goes to the American people? None.
As stated above, the present legislation is a step in the right direction, but who is REALLY going to buy into it? Those already here have a sweet deal, why would they opt to pay a $2000 fine and more taxes for what they already receive? Those who will use this new system are those who want to come, thus opening a floodgate. It seems an insurmountable problem,an unending circle, an exercise in futility.
But. What if. It was made so that living here illegally was not so easy. What if, every time a non-citizen went to send that western union to Mexico they were hit with a 50% tax? And what if, those transactions were reported to the IRS? Wouldn't be so rosy then. That might change things a bit. In fact, if that tax was imposed at a state/local level it might just make up some of the costs associated with these immigrants. Our schools and hospitals might not be on the verge of collapse or closure.
By imposing this tax we can accomplish several things, the most important of which is this: We can reward those who have come to embrace and live the American dream. Those who wish to live here and be a part of America. Conversely, we can give those who are here as parasites a reason to go home, and stay there. This is America. We are a nation of Immigrants, built by immigrants, governed by citizens. It is time we stopped being a doormat and show the world what we have always done best, embracing those who choose to come here and be a part of this great nation.