Posted 05.06.2010
The economics of immigration reform
Have you got an opinion? Let's hear it
By Bart TaylorImmigration reform is an economic issue: immigrants are drawn to the United States in pursuit of jobs, of financial opportunity - a piece of the American dream. In turn, our economy relies heavily on immigrant labor - documented and not. Business should therefore be at the forefront of reform efforts, protecting their interests.
But can business agree on a reform plan?
A contributor to last week's dialogue on this website, attorney Jeff Joseph, referenced one report measuring the impact of undocumented labor on the Colorado economy and the degree to which the state's businesses are invested in this labor pool:
- Unauthorized immigrants comprised 5.4% of the state's workforce (or 150,000 workers) in 2008, according to a report by the Pew Hispanic Center. (Mike Gilsdorf's column in today's Update suggests the number has grown significantly the past two years.)
- If all unauthorized immigrants were removed from Colorado, the state would lose $8.0 billion in expenditures, $3.6 billion in economic output, and approximately 39,738 jobs, even accounting for adequate market adjustment time, according to a report by the Perryman Group.
The report also outlines how reliant state revenues have become on immigrant labor, namely that "unauthorized immigrants in Colorado paid between $159 million and $194 million in state and local taxes in 2005," according to a study by the Bell Policy Center, which includes:
• $24 million to $30 million in state income taxes.
• $10 million to $13 million in property taxes.
• $125 million to $151 million in sales taxes
Whether you choose to believe the numbers, it's difficult to deny the economic impact of immigrant labor and the challenge we now face to solve the problem of "unauthorized" workers, to borrow Bell's euphemism.
The question is what now? Arizona chose one path. It's not, however, the only path, as some are suggesting.
I would argue that "gridlock' is as much a calculated position as not. Some elected officials have decided that opposing immigration reform is the preferred political approach. It wins votes.
Of course the central, controversial component in any reform discussion is the concept of providing a reasonable path for undocumented aliens to earn citizenship without leaving the country. It is, to many, amnesty, and as such, opposed at all costs by some lawmakers.
But the costs of holding up the reform discussion are real. Is it realistic to assume we can deport hundreds of thousands of undocumented workers in Colorado without a significant hit on the state's economy? I've not yet read a practical road map that accounts for a loss of this magnitude.
If you have, send it to me, or make the case. Again, please disclose who you are and who you work. We'll publish your thoughts.
Bart Taylor is the publisher of ColoradoBiz magazine. E-mail him at btaylor@cobizmag.com.




Readers Respond
This article smacks of CNN figures based on employee Tax payment norms NOT Reality. Most of the illegals are paid under the table and taxes are never collected. They then send the money home where thier relatives live high. They impact all of the social programs and health care services that the rest of us pay for!! All forms of MEDIA missrepresent the true impact of these SLUGGS on our society!! ARIZONA is only supporting the LAWS that the FEDS ignore and "THE FRESH PRINCE of BEN DOVER" is only after the MEXICAN MIGRANT votes. Com-On People stand up for yourself or we will become the TAX SLAVES that "THE FRESH PRINCE of BEN DOVER" Wants us to be. Retsjaw, OUT
By J Web on 2010 05 15Thank you, Jeff. I am now better informed, and much relieved. My experiences, while deeper than many living in our communities, are not nearly as vast as yours, and I'm thrilled to hear of the goals these folks have. Ever run into an successful person who indicates they were an orphan? They, and the immigrants you describe, are motivated by opportunity, and by not squandering good chances. This ethic is lost on many of us who were born here. Kudos to you. Keep up the good work, and keep us informed. (I'm much more inclined to your thinking than somebody with a dog in the fight (Gilsdorf) or none (Taylor), with respect to both, of course.) Hope we can find a compromise in all this - I think you and I agree on that. Best, Les
By Les Jones on 2010 05 07Les: When did I say that immigrants are "migrant workers" almost exclusively. What I said was that immigrants do work in sectors in which U.S. citizens are unable, unwilling or unqualified. Foreign nationals compete with workers at the very low end of our economic spectrum for very low skilled jobs as well as the highest end of our economic spectrum for very high skilled jobs. If you need evidence of this, go to any restaurant, construction site, hotel,resort, or field and you will see a largely foreign population. Similarly, go to any Medical school, University, Engineering Firm, etc. and you will see a very large foreign national population. The fact is that U.S. workers compete very well for jobs in the middle. i.e. jobs that require some experience or perhaps jobs that require a bachelor's degree. But we don't compete very well in the lowest skilled jobs or the highest skilled jobs. The sectors in which we compete only makes up a fraction of our entire job market. That leaves gaps in the low skilled and very high skilled sectors. My point was that it is good for our economy to allow employers in those industries to import labor so that the employers can continue to keep the costs of products, goods and services down for us. Could we send U.S. workers out to pick our lettuce? Absolutely, but the cost of doing so would make the price of lettuce so astronomical, that no U.S. family would be able to afford it. As far as your statements that the illegal is not here to pledge allegiance to our flag or to express great love for gringos or to learn english, well, you relied on your actual experience, so I will rely on mine. It is true that I represent people that have run afoul of the law, have commited crimes and are now in deportation proceedings. The law makes it very hard for those people to remain in the country, and frankly, I am okay with that. I will provide the best defense I can, but at the end of the day, they made choices that put them in their situation. However, those people do not represent the 12 million undocumented that are here in our country anymore that Timothy McVeigh represents the American people. The fact is that 99% of the people that I see in my office on a daily basis are here to make a better living for themselves and to provide for their families in ways that are not available in their home countries. The vast majority pay their taxes with an ITIN number. They speak English, not perfectly, but better than I speak Spanish. They LOVE AMERICA. They love the idea that America presents. If you ask them what they want for themselves, there are two consistent answers: They want to own a home someday, and they want their kids to go to college. Their dreams are the same as our dreams for our children. So, as long as we are making generalizations, those are mine. Based on 13 years in my profession and representation of 1000s of individuals, families and businesses seeking the same dreams all of us have.
By Jeff Joseph, Joseph Law Firm, P.C. on 2010 05 07Thanks, Jeff. I agree. I wrote last week about my actual experiences, mostly to properly dispel your notions that these people are migrant workers almost exclusively. Tell me why it's not different today than yesteryear when people valued getting to come to America and become naturalized. The illegal is here for the dollar, not to pledge allegiance to our flag, or to express great love for gringos, or learn english and become naturalized. The ones I talk to look forward to returning to Mexico, and send a ton of money back there already. So in fairness, yes, let's have the stats from both sides. Strange we don't see reports in the CO Biz articles of the costs of illegal immigration, nor arguments for strict enforcement of our current laws, only "reform", which is code for amnesty, in the posts from Mssrs. Taylor and Gilsdorf. Are there two CoBiz voices on my (sic majority?) side of the issue?
By Les Jones on 2010 05 06Bart: Thanks for continuing to report on this very important issue. I appreciate the debate, but challenge those who comment, like I did last week, to debate with actual facts and statistics. Don't make generalizations unless you can back them up.
By Jeff Joseph, Joseph Law Firm, P.C. on 2010 05 06100,000 have left AZ this week. Don't be naive enough to think they went south. Thank you utopians but you don't understand human nature at all. I work harder than my neighbor, and I don't want to be his equal and stuck on average. There are many more BMW 7 Series and MBenz autos in Beijing than Denver for the same reason. A global nation? It's not what our illegal immigrants want, nor what I do. And, please,stop calling us names, those of us who want our good and great laws to be respected and followed now, even this far in to this controversy, and not changed via "reform". And stop it already with the compassion bit: I spill bigger bucks and more time than you showing compassion to the dispossessed here and all over this world. Money, and oil, and differentialtion, and discernment, are not evil representations of goodness, or even of peace. America's benevolence (and that of its citizens) is what makes this world as peaceful as it is. Is your cup half full? Or empty?
By Les Jones on 2010 05 06This is not Hollywood where we all get to hold hands and sing, We are the world" Annie - it is real life. I have not looked at statistical reports in quite some time regarding the "money" indicated in this article from taxes, but last checked the numbers of illegals not paying taxes were quite high - as in most were not. If that has changed then we are at least winning back some losses. However, Kathie makes the point about morals and ethics that is right on. Annie on the other hand wants everyone to just get along. If you are not willing to come into this country and accept the moral fabric that it was built on then go home, why would we want you? A country bending to one racial segment is ridiculous. If I go into a store and only speak Gaelic I can guarantee you that there will be no signs to help me and none of there employees would potentially speak Gaelic to me. However, that is not the case if you speak Spanish. It is not about race or being insensitive to the plight of immigrants wanting to come to a country were they can earn more and feel safe from oppressions - it is about being LEGAL and about the MONEY!!!! WE are in this mess because we have been greedy and our politicians (both Dems and Repubs) have shown that their own morals and ethics have failed. ILLEGAL immigrants are here because of the money corporations are making off of cheap labor. As far as how accepting we are here in the USA - we rock!!!! You will not find another country like us that is so willing to let you live and let live regardless of politics or religion. This story has barely turned over one leaf in this mess and only because it feeds off the topical news reports of Arizona taking a stand. Can't we all just get along!
By Eddie on 2010 05 06In response to Kathie B's comments: I wish I wasn't a 'dreamer'...It's often painful to read or hear what others like Kathie B. 'value'. I dream of a day when there are NO borders, when it isn't considered ILLEGAL to go live and work anywhere in the world, where, its more important to be a GOOD HUMAN that VALUES EVERY ONES rights... where the word 'Character' is about understanding and compassion rather than following laws that continue to separate us and keep us in fear of one another... I dream of a time when we learn to invite each other in, instead of push each other out, when our differences are honored, not fought about, where we learn to work TOGETHER to make a better WORLD, not just a better country. We are ALL 'connected'. we need to start making LAWS based on that principal!! to NOT understand our connection to one another, either ECONOMICALLY OR MORALLY is the very reason why our country and the rest of the world is in the mess it's in!!
By Annie on 2010 05 06Thanks Kathie. I agree with the premise that enforcement continues to has be an issue. What I don't read is a plan to deal with 200,000 or so immigrant workers, here, in Colorado. You would, what?
By publisher on 2010 05 06It seems to me that you are only looking at one side of the coin. What are the expenese costs of the ILLEGAL immigration population, what studies have been done to account for the costs. I would say that for every ILLEGAL immigrant there is a US Citizen or LEGAL citizen that would be able to take their place. The question for me is NOT economics. It is why do we have laws if we are not going to enforce them. I doubt there are many countries in the world that would keep open borders for anyone. However, if that is what you want for this country and want to do away with laws then I think economics does become an issue at that point. Where were you born, and does that even matter to you? Are you a good citizen? What is it that you value in life? Is it only MONEY or economics? These are many issues that surround ILLEGAL entrance into the United States of America. I believe you are only looking at the value of MONEY. I hope you can at some point get beyond the money. Look at the moral, ethics & value the LEGAL people who live and enter this country work hard to maintain. What has happened to being a GOOD Citizen with CHARACTER AND VALUES. Let immigration reform be about making our country stronger not weaker by only considering the "ECONOMICS".
By Kathie B. on 2010 05 06Leave a comment
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