Excerpts from: The Economic Costs of Mass Immigration
Why Mass Immigration is Bad for Business, Bad for the
American Worker, and Bad for Taxpayers
Bad for Business: The Numbers
Business often lobbies for more immigration because it is
clear to all that rapid growth in the labor force drives down
the cost of labor (wages and benefits). Harvard economist
George Borjas calculates that mass immigration increases profits
by $160 billion, but depresses wages by $152 billion, annually.
The $8 billion net addition to GDP is negligible in our $8
trillion economy.
The $8 billion that immigration adds to GDP in the $8 trillion
annual U.S. economy is very small. And that little bit is
more than off set by the costs of the population growth that
mass immigration generates. These costs are felt primarily
as tax increases at the state and local level.
For example, each person added to a community cost existing residents
(a national average) $15,378. Given that, if current immigration-generated
population growth continues, the U.S.A. will exceed 500,000,000
by 2050, and one billion by 2100, one can see the costs to taxpayers
are staggering.
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...in 1997 fiscal year alone,
immigration imposed a net (i.e. after subtracting taxes immigrants
pay) tax burden of $3,463 on each native -headed household
in California.
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Specifically, immigrant-related costs are major. All taxpayers
shoulder the burden for funding schools, medical care, transportation,
criminal justice system, and infrastructure used by immigrants and
their families.
About 80% of immigrants are less educated than the average
American. They are, on average, paid less than the typical
American, so immigrant-headed households draw on social services
at a greater rate. Statistically, immigrants use more welfare
and food stamps than the average for native-born Americans
despite the 1996 reform legislation that imposed an eligibility
requirement of a ten-year residency on non-citizens. And even
these requirements have since been watered down.
Taxpayers, especially at the state and local level, bear the
brunt of immigration's costs, which all credible studies have
shown that, in the 1997 fiscal year alone, immigration imposed
a net (i.e., after subtracting taxes immigrants pay) tax burden
of $3,463 on each native-born household in California.
Employers of immigrant labor do profit from low labor costs,
but even they need to calculate their net profit (or loss)
from immigration. Is their lower labor costs offset by higher
taxes?
For everyone who does not employ immigrant labor, the calculation
is a no-brainer. Most Americans lose.
A complete copy of Carrying Capacity Network's "The Economic
Costs of Mass Immigration" is available to order online in
our publications section for $5 at http://www.carryingcapacity.org/pubs.html
Tell your friends about this page!
Note: CCN is anti-mass immigration
but NOT anti-immigrant.
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