Is Illegal Immigration the cause of all Economic Problems in USA?
April 11, 2010
Professor William Taylor
Famous poets wrote and quote “Give me your tired, your poor, your huddle masses yearning to breathe free, the wretched refuse of your teeming shore. Send these, the homeless, tempest-tots’ to me; I lift my lamp beside the golden door!”(Emma Lazarus, 1883). The United States is considered the land of freedom were for hundred of year people has come looking to lived the American dream. They come for the freedom, jobs, and in many cases to practice their religion without been persecuted. But the immigration issue has cost this nation a lot to be concern and now the fragile balance to support immigration to this country has been compromised. Since the attacks of 9/11 many people feel that our borders need to be secure and that many illegal immigrants need to be deal in a promptly manner. Many studies have being made but one in particular has made me look at this issue very closely because not all illegal immigrants are here to displace American from their jobs. Studies made by the Center for Immigration Studies and Steven Camarota stating that illegal immigrants create a drain in the US government, illegal immigrants are not the only cause but major companies moving to other countries to make more profits and escape from paying taxes and retirement benefits, leaving hundreds of American without jobs. Illegal immigrants only work in those jobs most American don’t want and since the signing of the law in 1996 most illegal immigrants cant receive any benefits like food stamps or Medicaid for them or their families. Recent studies made by the Department of Homeland Security Office found that illegal immigrants’ population has drop from 11.8 million in January 2008 to 10.6 million in January 2009 (DHS Population Estimate, January, 2009).
Statistic shows the decrease in illegal immigrants by a study done by Homeland Security Office. The figures from 2001 to 2004 are not available due to the 9/11 action and the Iraq and Afghanistan wars. Between 2000 and 2007, the unauthorized population grew by 27 percent. Of all unauthorized immigrants living in the United States in 2007, 63 percent entered before 2000, and 62 percent were from Mexico.
The decrease in the size of the unauthorized population between 2008 and 2009 is not likely due to sample error said the DHS but more likely the stiffest laws pass by the Congress and Immigration Office to companies that hire illegal immigrants and more security in our borders. According to the Annual Report of 2008, the DHS immigration enforcement has apprehended 792,000 foreign nationals; 88 percent were natives of Mexico, 359,000 aliens were removed and 811,000 accepted an offer to return to their countries without removal orders, and 97,000 known criminals were also removed from United States.
Many concerns from Americans about illegal immigrants are that they are draining public services like food stamp, welfare, health care and schools funding. Steven Camarota director of research for the Center for Immigration Studies assert “that illegal aliens imposed more than 26.3 billion dollars in cost in federal government in 2002 and paid only 16 billion in taxes creating a fiscal deficit of 10.4 billion in programs like Medicaid, Women, infant and Children food program, and federal aid to schools lunches, (1.9 billion); the federal court and prison system (1.6 billion), and federal aid to schools (1.4 billion)” (Illegal Immigrants Create a Drain on US Government, 2007 Opposing Viewpoints Resource Center).
Now the question is; how is that Steven Camarota has come with these figures if in 1996 the Congress passes a law reforming Welfare? In 1996 welfare reform bill disqualified illegal immigrants from nearly all means-tested government programs including food stamp, housing assistance, Medicaid and Medicare funded hospitalization. The only services illegal can still get are emergency care and K-12 education. (The Library of Congress, HR 3734 Sec.401-411 Welfare Reform Act, 1996). Also there is the fact that illegal immigrant paid taxes in many ways, experts agree that at the time of collecting taxes the IRS collets more than 18 billion dollars from workers with little probabilities of claiming a refund and no hope of claiming a Social Security check. According to Mark Hinkle spokesmen from the Social Security Office says “The office estimates that for 2005, the agency paid nine billion dollars on 75 billion in wages receive from people that filled W-2 forms with incorrect or mismatch data which will include illegal immigrants that drew paychecks under fake names and Social Security numbers. But that nine billion dollars sound like a lot of money and it is, but is only 1.5 percent of the total 593 billion paid into Social Security in 2005” (Many Illegal Immigrants Pay up at Tax Time by Travis Loller, USA Today Feb 25, 2010).
Now let’s talk about Unemployment figures; The Center for Immigration Studies says that illegal immigrants are taking jobs from American citizens, it is probably true but the facts are different today than 15 years ago. Statistic shows that unemployment is higher among legally working immigrants than American citizens. Steve Camarota states that immigrants have been hit somewhat harder by the current recession than have native-born Americans. Immigrants on both sides legally and illegally now have a significantly higher unemployment rate than natives.
Another way to look at the recession is to examine the number of people holding jobs. Tables 1 and 2 report this information. Since the third quarter of 2007 the number of working immigrants declined 2.1 million, or 9 percent. Among natives the decline in the number working was about 4.5 million, or 3.7 percent. This adds further support to the idea that immigrants are being hit harder by the recession than are natives. Figure 1 reports this information graphically.
In the above analysis we compared the third quarter of 2007 to the current quarter. If one wishes to compare unemployment rates in other quarters, Table 4 provides employment statistics by educational attainment for every quarter since the third quarter of 2007. Figure 2 is a graphical representation of unemployment rates of immigrants and natives going back to the beginning of 2005.
These figures don’t count the actual illegal immigrants that are without jobs not only by the recession but also the strictly laws pass by the Homeland Security Office to those companies that use to hire illegal immigrants.
The reason for the economy meltdown is not cause by illegal immigrants like many people want to portrayed about them, but big corporations that have desire to moved their companies abroad to escape paying taxes, benefits and compensation to the American workers. One of the biggest unions of United States, the AFL-CIO state in one of their issues “Policymakers must reform policies that encourage and reward jobs destruction and implement new policies that will create good jobs for the future. While no single policy measure provides a magic bullet for stopping job loss, a dramatic re-orientation of US policy that removes incentives for shipping jobs offshore, while fostering healthy conditions at home for job creation. Will go a long way towards building more balance global economy that works for the American families”. (www.afl-cio.org/issues/jobseconomy/exportingamerica/outsourcing_solution.cfm)
These have been the issue since the implementation of the NAFTA, many corporation before and after had outsource jobs to Japan, China, Mexico, Philippines and other countries with the benefits of making lots of profits. Now they have other reason to moved complete corporation abroad and that is to avoid paying taxes, benefits, retirement plans and to break companies unions.
Ten big corporations that have moved their headquarters abroad to pay less US taxes.
a) Halliburton a Houston base company once led by Vice-President Dick Cheney relocates to Saudi Arabia in March, 2007.
b) Accenture a former Big Five accounting firm moved to Bermuda.
c) Foster Wheeler engineering company moved to Bermuda.
d) Ingersoll-Rand Co. LTD moved to Bermuda.
e) Tyco International LTD provider of health care faced IRS audit moved to Bermuda.
f) Cooper Industries electrical products and tools moved to Bermuda.
g) Noble Drilling Service Inc. one of the largest companies in offshore drilling moved to Cayman Island.
h) Global Crossing telecommunication provider moved to Bermuda.
i) Seagate Technology LLC designer and manufacturer rank number nine in PC World’s moved to Cayman Island.
j) Nabors Industries LTD word biggest offshore drilling company moved from Texas to Bermuda and Barbados, Nabor Industries report a 428.4 million in profit in the US and would have paid 86 million in taxes.
All this companies when moving they left a total of 53,000 people unemployed and without benefits. They have made a total of combine profit of 1.6 trillion dollar and have not paid a cent in USA taxes. According to Douglas McIntyre, editor at 247wallst.com said “In a tough economy, the income tax burden on individuals becomes more of a weight. Add the payments to higher gas prices, mortgages that are being reset at lofty levels and rising food cost and the results can be awful. But at least corporation are paying income taxes to carry part of the burden running the federal government, right? Wrong as the New York Times writes, “Two out of every three United State corporation paid no federal income taxes from 1998 through 2005, according to a report released by the Government Accountability Office, the investigative arm of the Congress”.
Many people including the Center for Immigration Studies have portrayed the illegal immigrants as the cause for the economic troubles in the United States. But the reason behind our economic problems goes far beyond the issue of immigrants either is here legally or illegally, the facts are there both are suffering the same economic trouble American-native is suffering. The issue here is that Congress should pass a law that will reform the existing laws that required big corporation to pay their taxes even if they moved their companies abroad. Also provide American employees and those immigrants that are legally here for work protection if the corporation wants to moved and eliminate jobs here. The other issue is the illegal immigrants that are already here and have families in United States, to give them the opportunity to stay as long the complied with the new immigration reforms that they will not bring any family from their country. The bottom line is that illegal immigrants has contribute in many ways to the American economic, they work low-paying physically demanding jobs that many American (though not all would rather not do) would otherwise be outsource altogether. And by doing so, they will make money for innumerable tax-paying US corporations and determined the cost of good and service for every American. Finally there are too many variables to establish the exact financial impact of illegal immigration in the United States. But one issue is certain, that without determine how much, will prove costly for all.
AFL-CIO (2/18/2010). America’s Union Movement, Exporting America
Camarota Steve. Center for Immigration Studies; Welfare use by Immigrants-and Native
Headed-household with Children (2/10/2010).
Trends in Immigration and Native Employment (May, 2009).
Homeland Security Office, Population Estimates: Estimates of Unauthorized Immigrants
Population residing in the United States: January 2009. By Michael Hoefer, Nancy Rytina
and Brian C. Baker.
Annual Report; Immigration Enforcement Actions: 2008
Haugen David M. Illegal Immigrants do not Drain Public Services; Press 2008. Opposing
Haerens Margaret. Illegal Immigrants do not Harm America’s Economy; Press 2006.
Opposing Viewpoint Resources.
Miller Debra A. Illegal Immigrants Create a Drain on the U.S. Press 2007. Opposing
McIntyre Douglas A. Companies that don’t pay taxes and it is most of them.
www.bloggingstocks.com/2008/08/13/companies Internal Revenue Service.
Loller Travis. Many Illegal Immigrants pay up at tax time; USA Today 2/25/2010.
Library of Congress: HR3734 Sec. 401-411 Aliens who are not qualified, Aliens ineligibility
For Federal Benefits (1996).
Words Editors HR; (6/4/2008) 10 Big Business that have Moved their Headquarters Abroad to
Pay Less U.S. Taxes
|What is the main point of this paper?
The main point of this paper is illegal immigration and the cause of economic problems in the USA.
|What is the greatest strength of this paper?
Steven Camarota’s comment about immigrants draining the government.
|What material does not seem to fit the main point of the paper or does not seem to be appropriate for the audience?
It is all appropriate.
|Has the author sufficiently addressed counterarguments? Explain your answer.
||Yes, the author used citations and parenthesis.
|Where should the author add more details or examples? Explain your answer.
||The author does not need to add any more details.
|Where is the writing unclear or vague?
||The writing is not unclear or vague except for a few misspelled words.
|What is your favorite part of this piece of writing?
|What other comments can you provide for the author?
||The author should pay closer attention to his or her wording and spelling, other than these problems it is a good paper.