Cato Institute
Policy Analysis
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dates in the bill would exceed the thresholds
An EEV Tax, Privacy
set by the Unfunded Mandates Reform Act of
Undone, and Mission Creep
1995.
The national ID system required to do
Unleashed
EEV at all well would be even more expensive.
The REAL ID Act--our moribund national
Were the national ID system necessary for
ID law--is a first step toward the comprehen-
effective EEV put in place, employers could do
sive national ID system that would be needed
somewhat reliable verification of employment
to do EEV successfully. In proposed regula-
eligibility, but the system would impose many
tions for the REAL ID law, DHS estimated
costs on the country and society. The dollar
$17 billion in costs to implement REAL ID.50
costs of a nationwide EEV system would be
high. EEV would have far greater privacy con-
About $11 billion of those implementa-
sequences than the current system--conse-
tions costs would fall directly on state gov-
quences that would fall on American citizens,
ernments. Because states already have func-
not on illegal immigrants. And, once in place,
tioning DMVs, this increment is the low end
an EEV system would be used for everything
of the spectrum. Were the SSA or some other
from health care to gun control. Expanded
federal entity to create an identity infrastruc-
The national ID
EEV would invert our federal system and
ture from scratch, the costs would be tens of
system necessary
explode limited government. Final employ-
billions more.
ment decisions would no longer be made by
The public would bear the other $6 billion
for effective EEV
employers and workers, but by a federal gov-
of REAL ID implementation costs in navigat-
would impose
ernment bureaucracy--indeed, by a federal
ing the new bureaucracy and red tape needed
many costs on
database system.
just to get a driver's license. Individuals would
have to dig up birth certificates or get copies
the country and
Costs in Taxpayer Dollars
from public records offices (some of which
society.
In December 2005, the Congressional
may not exist any more, such as in New
Budget Office estimated the costs of the elec-
Orleans). Native-born American citizens who
tronic employment verification system in HR
may never have traveled overseas would need
4437, an immigration reform bill in the 109th
to search for proof of "legal presence" in the
Congress.49 Those costs were substantial.
country. Americans would stand in very long
lines at DMV offices. A DHS analysis detailed
Under the Basic Pilot expansion in that
the 10-year time-costs of REAL ID to citizens,
bill, CBO found that 50 million to 55 million
estimating 161.9 million hours preparing
new hires would have to be verified each year.
applications, 26.5 million hours obtaining
A total of 145 million currently employed
birth certificates, 15.8 million hours obtaining
workers would have to have been screened
Social Security cards, and 64.7 million hours
using the expanded system by 2012. CBO's
on DMV visits.51
estimate was conservative; it excluded agri-
cultural workers.
The smallest movement in the direction of
Given the massiveness of the undertaking,
a national ID has revealed the kinds of prob-
CBO estimated $100 million in short-run
lems that would arise from attempting to herd
costs for upgrading software, hardware, data-
Americans into the identity system needed for
bases, and other technology. To handle queries
EEV and internal enforcement. Alabama is a
about tentative nonconfirmations, DHS and
state that tried to get ahead of the REAL ID
the SSA would have had to spend approxi-
Act's mandates in 2006. Attempting simply to
mately another $100 million per year on new
match up the names in SSA databases with
personnel. The federal government, states,
motor vehicle bureau records, Alabama sent
localities, and private businesses would all
letters to individuals whose records were mis-
have to spend more for screening their work-
matched, asking them to correct the "erro-
ers. Accordingly, CBO found that the man-
neous" information on their driver's licenses.
15