Tag: immigration reform and control act

Immigration Illusions Part Two: Rector and Richwine Rediscover Budget Deficits

A recent paper by Robert Rector and Jason Richwine  (“The Fiscal Cost of Unlawful Immigrants and Amnesty to the U.S. Taxpayer”) went to a lot of unnecessary trouble to estimate that governments at all levels spent $54.5 billion more on services and benefits to households headed by unlawful immigrants (which includes children and spouses who are citizens) than was collected in taxes from them in 2010.  

It is hardly shocking to learn that federal, state, and local governments spent more on unlawful immigrants than they received in taxes, since governments spent more on nearly everyone than they received in taxes. That is what happens when governments run big budget deficits.  

Spending by federal state and local governments exceeded revenues by $1,342.6 billion in 2010—a conspicuously grander figure than the mere $54.5 billion Rector and Richwine attribute to unlawful immigration.  

For researchers to discover that unlawful immigrants, like most of us, did not pay enough taxes in 2010 to cover government spending was remarkably unenlightening. The paper is even less informative about the future, because (1) it ignores the fact that the Senate bill’s reduced restrictions on legal immigration would reduce the incentive for future illegal immigration, and (2) it ignores economic effects of a larger labor force in raising long-run economic growth

Disappointing Start for Immigration Reform

The good news is that a bill has been introduced in the House this week under the broad heading of immigration reform. Even during a recession, Congress should be working to change our immigration system to reflect the longer-term needs of our economy for foreign-born workers.

The bad news is that the actual bill put in the hopper by Rep. Luis Gutierrez, D-IL, on Tuesday would do nothing to solve the related problems of illegal immigration and the long-term needs of our economy.

As I argued in a recent blog post and a Washington Times op-ed, immigration reform must include expanded opportunities for legal immigration in the future through a temporary worker visa.

Any so-called reform that is missing this third leg will be doomed to fail. We will simply be repeating the mistakes of the 1986 Immigration Reform and Control Act, which granted amnesty to 2.7 million illegal workers and ramped up enforcement, but made no provision for future workers. Rep. Jeff Flake, R-AZ, agrees.

Are Democrats Serious about Immigration Reform?

President Obama is meeting today with a bipartisan group of lawmakers to talk about reforming our broken immigration system. The challenge for both parties will be whether they can overcome opposition within their respective bases to expanding legal immigration.

For Republicans, the chief opposition remains the faction of talk-radio-driven conservatives who just don’t like immigration, period, especially when it comes from Latin America. For Democrats, who now run Washington, the chief opposition to allowing more foreign workers to enter the country legally is represented by organized labor.

As the Wall Street Journal reports this morning, advocates of immigration reform “worry that Democrats will defer to the AFL-CIO on the issue of legal immigration. The labor confederation has opposed a robust guest-worker program or higher levels of legal immigration, fearing they would depress wages. A larger labor presence would splinter the coalition of business and pro-immigration groups that embraced past immigration efforts, only to see them falter in the Senate.”

As I’ve argued consistently in the past, immigration reform is not worth pursuing if it does not include expanding future flows of legal immigrants, both highly skilled and lower-skilled workers.  If Congress confines itself to legalizing the 8 million or so workers already here illegally, with a vow to get tougher on enforcement, then we are just repeating the mistake of the 1986 Immigration Reform and Control Act.

We will know if President Obama and Democratic leaders in Congress are serious about fixing the problem of illegal immigration if they face down their labor-union allies and embrace a workable, market-oriented expansion of legal immigration. Otherwise, we are in for more futility, frustration and failure.