Saturday, April 08, 2006

Econ 101 on illegal immigrants

I think Illegal immigrants in US could be competitive workers who contribute to economy’s overall growth with taxes and sales.
About 11 million undocumented immigrants are now in the US. Specifically, about 56% comes from Mexico and 22% from other Latin American countries. Many Latino immigrants are working in California, Texas, and Arizona. According to the pew Hispanic research center, undocumented immigrants account for about 4.9% of the civilian labor force, or 7.2 million workers out of a total US labor force of 148million.
In fact, each year, the US Social Security Administration maintains roughly $6 billion to $7 billion of Social Security contributions in an “ earnings suspense file” an account for W-2 tax forms that cannot be matched to the correct Social Security number. The vast majority of these numbers could be attributable to undocumented workers who will never claim their benefits.
However, Analyses consider these workers contributions beyond payroll and taxes. Undocumented immigrants are consumers who contribute to the both the economy’s overall growth with their purchases and to state and local sales taxes. Many undocumented immigrants also pay real estate taxes, either directly as homeowners or indirectly as renters. Those taxes are a prime source of funding for state and local governments.

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