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Friday, May 25, 2007

Heritage Foundation "Smacks Down" Immigrants as Productive Assets

The Fiscal Cost of Low-Skill Immigrants to the U.S. Taxpayer is a comprehensive compilation of, perhaps, more than you ever wanted to know about immigration, but is exactly what you and I need to know and understand.

Here are pertinent points, with inset-text taken directly from The Heritage Foundation:

Of all adult high school dropouts, legal and illegal, in America, 49% are illegals, 25% are legal immigrants and 9% are native-born Americans.

The U.S. Government, funded by U.S. citizens, pays out an average of $30,160.00 per legal and illegal household with heads-of-households lacking a high school diploma.

The $30,160.00-average paid represents social security benefits and Medicare, police, public safety, transportation, administrative support, public education and other means-tested aid. View this in Chart 2 of The Heritage Foundation report.
"Low-skill immigrant households are larger and younger than are households headed by non-immigrant dropouts: Only 17 percent of low-skill immigrant households are elderly compared to 43 percent of households headed by non-immigrant dropouts. Because they are younger, low-skill immigrant households have more workers per household than similar non-immigrant households, but the average wage per worker is actually slightly higher in low-skill non-immi­grant households ($20,828 per worker among non-immigrants compared to $18,490 among immigrants)."
"Overall, households headed by immigrants without a high school diploma (or low-skill immigrant households) received an average of $30,160 per household in direct benefits, means-tested benefits, education, and population-based services in FY 2004."
"Means-tested aid came to $10,428 per household, while direct benefits (mainly Social Security and Medicare) amounted to $4,891. Education spending on behalf of these households averaged $8,462 per household, while spending on police, fire, and public safety came to $2,746 per household. Transportation added another $809, and administrative support services cost $1,195. Miscellaneous population-based services added a final $1,529."
In return for handing-out $30,000.00+ per legal and illegal household, we receive from such households, a payment average of $10,573.00 in taxes. These paid-in taxes include federal highway taxes, unemployment insurance and workers compensation taxes, federal excise taxes and customs duties, state individual income tax, STATE LOTTERY PURCHASES (an average of $714.00 per household!), corporate income tax, state and local property taxes, federal individual income taxes, state and local sales and comsumption taxes and FICA "contributions." View this in Chart 3 of The Heritage Foundation Report.

We don't need to do the math because The Heritage Foundation has done it for us. U.S. citizens PAY OUT $30,000+ annually, to immigrant (both legal and illegal), low-skilled households, and we RECEIVE only $10,500.00 per such household into our coffers. EACH such household RECEIVES an average of $3.00 for EACH $1.00 paid in, and this thought from me - such benefits are often received through THEFT of our social security numbers.

In addition to the $30,000+ hand-out from American citizens, it is estimated there are 1.6 workers per legal and illegal, unskilled household, each averaging $18,490 in earnings. This is an average of $29,584.00 annually in earnings, plus the $30,000+ courtesy of citizens. View this in Table 2 of The Heritage Foundation report.

Of course, there's always a bottom-line and, in this case, it is the deficit in dollars incurred to you and me. For each household, we say adios to an average of $19,588.00. View this in Chart 5 of The Heritage Foundation report.

The bottom-line, or as The Heritage Foundation refers to it, The "Net Lifetime Costs," comes down to this:
"Receiving, on average, $19,588 more in immediate benefits than they pay in taxes each year, low-skill immi­grant households impose substantial long-term costs on the U.S. taxpayer. Assuming an average 60-year adult life span for heads of household,[24] the aver­age lifetime costs to the taxpayer will be nearly $1.2 million for each low-skill household, net of any taxes paid.[25]

This calculation assumes that a low-skill immigrant comes to the U.S. in his mid-twenties with a spouse and that both remain in the U.S. for an average of 60 years. Even if low-skill immigrants return home rather than remain in the U.S. permanently, thereby reducing costs, this argument merely underscores how costly low-skill immigrants are to the U.S. taxpayer. The less time these immigrants spend in the U.S., the lower the cost to the taxpayer. Moreover, most current immigration reform proposals would grant legal status to illegal immigrants, increasing their access to welfare and Social Security. These proposals would substantially increase the time that these immigrants remain in the U.S."
$19,588.00 x 4.54 MILLION such households is a total of $89.1 billion - $89.1 billion we give away, annually, to non-citizen, and knowing-lawbreakers. In addition:
"Over the next ten years, the net cost (benefits minus taxes) to the taxpayer of all low-skill immigrant households will approach one trillion dollars."
The Heritage Foundation, in Chart 7, shows that each and every age bracket RECEIVES far more than it PAYS IN, but as the households age, the deficit increases. Without considering THE POSSIBILITY of legal status through AMNESTY, current trends would expect retirement costs to be $1.9 trillion. Here's the way The Heritage Foundation explains it (and remember that AMNESTY is not taken into consideration):
"There are currently 8 million non-elderly adult immigrants in low-skill immigrant households.[26] Assuming nor­mal mortality rates, perhaps 7 million of these individuals will live to age 67.[27] After reaching age 67, the normal life expectancy would be approximately 18 years. With an average net cost of roughly $270,000 over 18 years, the net future retirement costs of the 7 million low-skill immi­grants would be around $1.9 trillion."
Below, The Heritage Foundation continues to smack-down the verbal posturing that these people pay taxes and, this view from me, that we should be grateful for their participation in our commerce (notice that these households are "net tax consumers" as opposed to you and me, who are likely "net tax payers:"
"...low-skill households are net tax consumers even during their working years. It is important to note, these families are rarely idle; they consistently work and pay taxes. However, the taxes they pay are seldom, if ever, sufficient to cover the cost of the government benefits they receive. In consequence, these households must be continually subsidized by other taxpayers.

Low-skill immigrants are among these problematic households. On average, they are a net fiscal burden throughout their working years, and after retirement they become an even greater tax burden. Politicians should be wary of any policy that will increase the future number of net tax consumers. Immigration policy, in particular, should be focused on increasing the number of positive taxpayers and reducing the future number of tax consumers."
The Heritage Foundation asks if these households "contribute to the solvency of Social Security." The short answer is no.
"It is true that low-skill immigrant households pay, on average, around $2,900 per year in Social Security (FICA) taxes; however, the average Social Security and Medicare benefits they receive actually exceed the FICA taxes paid. Of course, low-skill immigrant households receive many other government benefits as well, receiving ten dollars in total government benefits for each dollar they pay in Social Security taxes.."
Now when the illegals whine that they pay Social Security taxes, but will never see a penny of it - because they are illegal...remind them that they are receiving at least $10.00 in OTHER benefits, for each dollar they have paid in. Pay in $1.00 and get back $10.00. Incredible! Equally incredible is this:
"In the final analysis, taxpayers, including many Social Security recipients, will face higher taxes in order to subsidize low-skill immigrant households."
Current legislation is declared not to be AMNESTY by some Legislators, but you and I know that it is just that. The Heritage Foundation says this:
"Do not grant amnesty to illegal immigrants. Granting amnesty to illegal immigrants would, over time, confer entitlement to welfare, Social Security, and Medicare for the amnesty recipients. This would be ruinously expensive to U.S. taxpayers. Similarly a modified amnesty such as the Z visa program pro­posed by President Bush, would, almost certainly, over time result in entitlement of the Z visa holders to welfare, Social Security, and Medicare; such a plan would be nearly as expensive as forthright amnesty. Amnesty in any form would impose serious fiscal costs.
There is much, much more to this report. I encourage anyone with some endurance to read through The Heritage Foundation report by Robert E. Rector and Christine Kim.

Cross-posted at Maggie's Notebook