Economy factors into immigration debate
As the U.S. Congress struggles to reform the nation's immigration laws, many disagree over the effects of illegal workers on the economy and how to deal with undocumented workers already in the country. In December, the House passed strict legislation that would deport approximately 12 million illegal immigrants. In May, the Senate passed a compromise bill that was expected to experience difficulty passing in the House.
At issue is whether illegal immigrants in the country fuel the economy and the labor market or whether they cost American taxpayers. City and county officials have voiced concerns that undocumented immigrants are a burden on their budgets and do not put into tax revenues what they cost in services, such as incarceration or medical care. “It costs us millions per year, and as Congress debates immigration reform, we hope they understand that it's local governments who are the first to deal with providing services like healthcare and education,” says Ed Rosado, legislative director for the Washington-based National Association of Counties.
The Washington-based Federation for American Immigration Reform (FAIR) estimates that current local annual costs of illegal immigration from three program areas — education, emergency medical care and incarceration — amounts to nearly $36 billion. In addition, FAIR estimates the annual cost of illegal immigration to fall between $67 billion and $87 billion a year. Another concern is that undocumented workers who are willing to work for lower wages will hurt the job market for American workers by taking jobs and lowering wages. In March 2005, undocumented immigrants accounted for about 4.9 percent of the civilian labor force, or about 7.2 million workers out of 148 million, according to the Washington-based Pew Hispanic Center, a nonpartisan research organization. The Washington-based Center for Immigration Studies (CIS) released a report in March indicating that the increasing number of low-skilled immigrants in the U.S. workforce has displaced many low-skilled, less educated Americans from the labor market. CIS, which advocates strict immigration laws, found that the unemployment rate of Americans between 18 and 64 with little education increased by 1 million between 2000 and 2005. The study further found that states with the biggest growth in their immigrant workforce also saw the biggest declines in the employment of less-educated natives.
But some officials and pro-immigration groups argue that undocumented immigrants generally benefit the American economy. According to the National Council of La Raza, a Washington-based Latino civil rights and advocacy organization, the majority of undocumented immigrants pay income taxes using individual taxpayer identification numbers or false Social Security numbers. “Many do because they want to make a contribution,” says La Raza spokeswoman Luisa Grillo-Chope. “They are in the country, and they know their [money] goes to improving schools and that kind of thing. Also, many are in low-paying occupations, so they would probably be eligible for a refund.”
The Washington-based American Immigration Lawyers Association (AILA) states that immigrant households paid an estimated $133 billion in taxes to federal, state and local governments in 1997. The AILA also says that immigrants may add as much as $10 billion to the economy each year.
Thomas Donohue, president and chief executive officer of the U.S. Chamber of Commerce, told a Congressional subcommittee in May 2005 that studies have shown that less-skilled workers experience very little downward pressure on their wages from competition with illegal immigrants. He says American workers are moving into higher-paying and higher-skilled jobs, and immigrants have filled the gap by taking manual labor jobs that American workers are unwilling or unable to take.
Meredith Preston is the Washington correspondent for American City & County.
