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Wednesday, April 26, 2006

Newt's Immigration Plan

Former House Speaker Newt Gingrich has a plan to deal with the immigration problem. He has set out his plan in detail.

3 Comments:

Anonymous Anonymous said...

There is a fair amount of wisdom in Newt's approach. At least it would overcome the objection that we would just be repeating the 1986 mistake. He essentially is borrowing the phased approach that Hillary also recently borrowed from Tom Tancredo's long stalled guest worker bill.

But Newt failed to say who is going to get stuck with the bill. The current illegals are costing us lots of money. If we make them legal and import lots more of them with a guest worker program leading to citizenship they will still cost us lots of money and probably lots more money because there will be more of them and being legal they will be eligible for more services.

Why should the middle class be forced to subsidize cheap labor for the big business special interests? If they want all these people then they should pick up the tab.

Why not have an immigration policy that serves all Americans rather than just the rich? Most Americans would be better served by importing well educated people who paid taxes and created jobs rather than importing a serf class that competes with the poorest Americans and requires subsidies from the middleclass.

4/26/2006 9:51 PM  
Blogger HispaniCon said...

A: Your comments always assume that immigrants are a net burden on social services and the country as a whole, but that contention is in dispute. Are you taking into consideration the fact that more legal workers means more tax revenue for the government because many "under the table" transactions will not be done in the open and subject to taxes?

4/27/2006 9:39 AM  
Anonymous Anonymous said...

Are you taking into consideration the fact that more legal workers means more tax revenue for the government because many "under the table" transactions will not be done in the open and subject to taxes?


Yes, I believe I am.

The High Cost of Cheap Labor study that I have occassionally linked to on this forum notes that about 65% of illegal aliens are paying taxes (mostly unemployment taxes because low wage earners have little or no income tax liability) and that about 35% are working under the table and not paying these taxes (felony tax evasion). Of course all illegals are paying sales taxes and, to the extent they own homes, are paying property taxes. If you read the study, it notes that when the 35% who are avoiding taxes become legal that tax revenue will climb substantially. But, the study indicates that social expenditures aimed at the working poor will climb even faster and more sharply.

The vast majority of illegal immigrants are unskilled and lack a highschool education. Our economy (and all other economies) places a low value on this type of labor and therefore no matter how hard they work, the vast majority of these people are destined to be at the low end of the income scale. In other words they will be poor.

Poor people pay little tax and they consume lots of services. I find it difficult to believe that you, as a conservative Republican, don't fundamentally understand that a vast expansion of the class of people who are poor will also result in a vast expansion of transfer payments from the people who are net contributors to the treasury to the people who are net drains on the treasury. It is so obvious that it barely merits discussion.

Of course I would be happy to read and consider any study that you can post that indicates that poverty stricken workers make a net contribution to the treasury. I've never seen one and I strongly suspect that if there was such a study it would be bogus on its face. Like the stuff from the Manhatten Institute by Tamar Jacoby that talks about the $7 billion tax contribution to social security while completely ommitting the fact that they impose any costs.

I would be much more positive about importing all these poor people if we could roll back the welfare state to say where it was during the last major waves of immigration at the turn of the 20th century. If people had to live on what they earned and I wasn't taxed to make up the difference, I wouldn't much care. But realistically I don't think we can accomplish that rollback and I'm sure it will be impossible while simultaneously importing poor people who overwhelmingly vote for socialism.

4/27/2006 11:05 AM  

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