
Criticism against legalizing undocumented immigrants has resurfaced as President Obama’s plans for immigration reform build momentum.
Opponents have condemned the possible legalization of undocumented immigrants on a variety of grounds--allowing immigrants to work legally when so many Americans are unemployed is irrational and granting amnesty to immigrants who broke the law when coming into this country is wrong.
The Pew Hispanic Center reports an estimate of 12 million unauthorized immigrants living in the United States. Texas alone is home to 1.45 million of them. Before attacking immigration reform, critics should consider why a legalization effort for this large number of immigrants is crucial in terms of economic recovery.
Researchers from the Immigration Policy Center have suggested that a change in immigration policy offers the potential to generate new revenue from income and payroll taxes. The Congressional Budget Office and the Joint Committee on Taxation estimate that the immigration reform bills introduced in 2006 and 2007 would have increased the tax revenue by $66 billion and $48 billion respectively.
Our current policies drive undocumented immigrants to work for an underground economy outside of the tax system, resulting in a loss of revenue from personal income taxes. More important, though, are the undocumented immigrants (between 50 and 75 percent) that are paying Medicare, Social Security, federal and state income taxes without receiving any of the benefits. In 2006, the Social Security Administration reported a total $586 billion in earnings from workers who weren’t eligible for Social Security benefits because their names or numbers didn’t match SSA records.
An immigration policy that gives legal rights to undocumented workers will allow them to have better jobs and earn higher wages. Higher wages translate to more spending and more money pouring into our businesses. Immigrants have already proved to be a major economic force. A study by The Selig Center for Economic Growth at The University of Georgia reports that the Latino buying power totaled more than $950 billion in 2008, while the Asian purchasing power amounted to $509 billion. Moreover, immigrant-owned businesses generate $67 billion of the $577 billion in U.S. business revenue, according to the Small Business Administration. Immigration reform would be a step toward creating more businesses and more jobs.
The financial situation is America’s main threat, not immigrants. Instead of spending a massive $13 billion on border security and immigration enforcement, our country should be taking advantage of the contributions that a foreign-born population has to offer. The U.S. needs immigrants who can study, work, earn, spend, create businesses and pay their taxes legally to drive the economic growth.