Thursday, August 23, 2007

Illegal Immigration

Normally, I don't like to write about politically charged issues in my blog. However, this issue does intersect the area I most enjoy writing about. Money, jobs, business and the rising costs for Americans.

Per the Heritage Foundation, it is estimated that 1 Billion people around the world would like to live in the USA.

As an auditor who works with a lot of databases, I find that it is fairly easy in at least 50% if not more of the case to detect illegal immigrants by employers who could expend a rudimentary effort. Fake Social Security Numbers are used and can be detected with the assistance of the social security administration for all business.

It has been estimated that the true cost of illegal immigrants even after amnesty is high. Why? Low-skilled individuals, legal or illegal, cost the government much more than they pay in taxes, Uncle Sam would be out-of-pocket $70 billion a year.

Heritage calculates that the average household of a high school dropout pays about $9,600 in taxes, including payroll, sales, excise, possibly income (often offset by the Earned Income Tax Credit), property, etc. That same household receives about $32,000 a year in government services. These include Social Security, Medicare, education, welfare, highways, police and fire protection, etc. The net cost to society for each low income and low skilled individual can be reasonably estimated from these figures to be $22,000 cost to society!!!

Additionally, these immigrants are being really exploited by the businesses who hire them. The Southern Poverty Law Center struck a blow at existing guest-worker programs, and perhaps Mr. Bush's proposal, with a detailed report concluding that guest workers are "close to slavery." They are paid little, routinely cheated out of wages, forced to live in squalid conditions, and held virtually captive by employers who seize their documents. It's an "untenable situation ... not morally acceptable," says Mary Bauer, author of the report.

Source: http://www.csmonitor.com/2007/0319/p16s01-cogn.html?page=2

0 comments:

What is this blog about?

This blog will have information on personal finance, accounting tips for the layperson, and small business issues discussed. I am interested in starting a business in the next couple years so as I learn more about the subject, it will be posted. Welcome to this website, and I hope you find it educational. My business interests include individual: tax preparation, financial planning. Small business: taxes, bookkeeping, payroll, financial statements. Corporate: I do SOX audits and IT data analysis (duplicate payments, erroneous vendor payments, and other analysis), fraud. The last is my day job.