Monday, January 23, 2012

Americans & Illegal Immigrants: Sharing The Shadow


Despite the drastic impact that immigration makes on our nation's health many Americans choose to stay in the dark as though unaffected

It concerns me that a majority of people lack basic knowledge about the immigration legislation over which our Congressmen and women are debating this summer. This issue has far-reaching impacts on all Americans, not just the 11 million who reside here unlawfully.

Republicans have a valid point in saying that lawbreakers should be punished, yet to deny them a pathway to citizenship if they worked to earn it would put our country at an obvious disadvantage. Many people in general are not aware of the contribution that this minority group makes to our quality of life. Low labor prices translate to low operating costs for business owners, which means Americans pay less for services and essentials, like groceries and housing. Hispanics' growing buying power and tax contributions also play a key factor in our economy's health. 

In evaluating the statistics it seems to me that the benefits to keep unauthorized aliens here outweigh the reasons to send them home. I say this to opponents: until the government schedules a mass deportation we need a realistic solution, not more complaints.

To highlight one of the largest problems that can be fixed by lawmakers here's a situation in which a client of mine found himself. He was offered $11 per hour for a job. But when payday came, he was handed $8 per hour in cash. The difference, the employer explained, was to pay the employee's taxes. Yet when the end of the year came the employee never received a tax return or any record of his earnings, nor was he paid time and a half after 40 hours. All of this data "disappeared."

Let me explain why this is relevant. Instead of paying payroll taxes, the employer worked this person "under the table," and evaded its tax responsibilities. Unlike honest enterprises it pocketed a handful of tiny percentages which add up in the long run: state and federal unemployment taxes (about 3% of wages), matching Social Security tax (6.2% of wages), matching Medicare (another 1.45%), worker's compensation insurance (a violation of state law), and overtime (a violation of Federal law [Fair Labor Standards Act (FLSA)]). This doesn't include any benefits, sick days, or vacation that someone working 60 - 70 hours a week may accrue with a reputable company.

Although this is clearly illegal, it's happening all over the country. Even staffing agencies who pretend to help people find employment take advantage of employees who are afraid to stand up for themselves because of their legal status. Yet are the employers to blame? Who's to say they aren't doing this just to hide that they are hiring illegal aliens? Maybe they have no choice.

We should remember that there are three sides to every store - my version, your version, and the truth. No matter where you stand on this issue, one fact is universal: many American citizens have no idea that problems like the one I just described exist. They don't realize that both businesses and humans suffer because solutions are not being put into place. Since they don't know, they don't care. They are in the shadows right alongside this group of unauthorized workers.

I suggest that part of this issue is education and public awareness. Even if I am only one person, the least that I can do is make a commitment to educating those around me about both sides of this controversial issue. The old arguments - like the one that says illegals don't pay taxes - must be thrown out, and educated ones brought in. In fact, households headed by unauthorized immigrants paid $11.2 billion in state and local taxes in 2010, according to the Institute for Taxation and Economic Policy. That's quite an injection of resources into a turkey that's been growing thinner, I think any U.S. economist would agree. Here's another interesting statistic:

"According to the Perryman Group, if all unauthorized immigrants were removed from the United States, the country would lose $551.6 billion in economic activity, $245 billion in Gross Domestic Product (GDP), and approximately 2.8 million jobs, even accounting for adequate market adjustment time." (See Source Below)

Our country cannot afford a loss this staggering. Not when our GDP is shrinking. Who is with me? When we take the time to educate ourselves we become more powerful and make better decisions. Join with me in writing to your Congressional representative about this issue. Get on your social networks and start talking. Form an opinion, any opinion! But don't stay in the shadows voluntarily. A solution to this issue is absolutely indispensable for the health of our nation, and you can be a part of it.

Remember that if we stand for nothing, we'll fall for anything.

Sincerely,

An Opinionated American




*Assumes a new business. Established businesses may pay less. In LA, as an employer builds his reserve of unused Unemployment contributions, the percentage that he must pay out to the state decreases. In most states the Unemployment tax is applied only to the first $7,000 of each employee's annual salary.

Sources:

http://www.laworks.net/Downloads/UI/wts/2012ratetable.pdf
http://www.accountingcoach.com/online-accounting-course/20Xpg04.html
http://www.laworks.net/faqs/faq_workcomp_employerdisputedclaims.asp

2 comments:

  1. Now this is a touchy subject. There are so many underlying facts on both sides. Yes, the government needs to get involved. I honestly cant fight for either side, but I do feel that we are all given laws that we must follow. Thus, illegal immigrants need to acquire citizenship; wether our government makes it easier to do so or illegals opt to do it on their own. Personally, what happens in the world today isn't fair, but check this out.. Immigrants play a huge role in my industry. With that being said, agriculturally, immigrants provide resources America doesn't. Cheaper labor allows cheaper prices for us as consumers. I know that wasn't a fair statement, why should their labor be cheap? Its not that they don't deserve more money.. Culturally most of the immigrants work ethics are so much better than our own. Sad yes, but true. Even if we did figure out something fair.. economically proven, the more money you make the less labor you put out. Say we did give immigrants free rane, like our Americans, would the quench of money keep their work ethics the same? I have an illegal at work who makes what we make, he has been with company for seven years.. he works nothing like the contracted illegals that visit the states to work. I am on a fine line with this.. No it isn't fair, but ethics aren't always a key factor.. What bothers me the most is that most of them send their money back home, where it is needed. Yes they do spend to live here, but more goes home. It would be a miracle if they figure out a solution to where both would win.. My solution: combine the countries with boundaries .. Just a thought :)

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  2. Thank you weighing in, Ms. Courtney. I'm going to agree with one part that you said, and then argue with the second half. It's not just your industry that immigrants play a role in - they fill so many jobs and have become a huge part of American culture. Like you said - cheap labor makes prices cheaper for everyone. Fair or not, I don't see anyone griping about roma tomatoes for 99 cents a pound. But if an American had to harvest them, I bet they would be more expensive, and then you'd hear whining to be sure.

    Now, in response to them sending their money back home.. What about the huge percentage that has rooted here completely and educates their children here, as well? Living in Dallas gave me a whole new perspective. Hispanics have overtaken Texas not just because they work there, but because they are now permanent parts of the landscape. I personally worked with families who were supporting 5-member households here in the States AND sending money home. You have a point about money being spent in both places, but I think that as these people stay here longer and longer they are making a significant contribution to our economy.

    By the way, the day we combine the countries I will do a naked dance on Youtube. What a day that would be! So much corruption in a resource-rich country.. (not that we don't it here, too.) But it's ten times worse across the border. Maybe we could do some good.

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