Tuesday, August 08, 2006

I Scream, you Scream, we all Scream for Ice Cream

I will preface this blog article with a cute story that is making the rounds on the web - goes something like this:

In the days when an ice cream sundae cost much less, a 10 year old boy entered a coffee shop and sat at a table. A waitress put a glass of water in front of him.
"How much is an ice cream sundae?" he asked.

"Fifty cents," replied the waitress impatiently.

The little boy pulled his hand out of his pocket and studied the number of coins in it.

"How much is a dish of plain ice cream?" he inquired.

Some people were now waiting for a table and the waitress was growing edgy. "Thirty-five cents," she said brusquely.

The little boy again counted the coins.

"I'll have the plain ice cream," he said.

The waitress tended to the other customers and would later bring the ice cream, put the bill on the table and walk away.

The boy finished the ice cream, paid the cashier and departed.

When the waitress came back, she began wiping down the table and then swallowed hard at what she saw. There, placed neatly beside the empty dish, were two nickels and five pennies - her tip.

** **

In much the same way, many undocumented workers in spite of the mistreatment and indifference shown to them because of callous stereotypes have dutifully contributed to our economy, paid their fair share of taxes and helped to grow the world’s largest economy (Since 2004, the U.S. has created more jobs than the rest of the G-7 countries combined).

Those who argue against immigration reform often make the point that these workers and their families are a growing burden on American society. Legal immigrants, they say, pay their taxes and work hard to raise their families, and "illegals" take services yet give nothing in return and depress wages.

First of all, it should be noted that up to 40 percent of the undocumented population entered the country legally and overstayed their visas.

Second point is The Commission for Immigration Reform (CIR) reported that the average immigrant and his or her offspring will contribute $80,000 more in taxes than they take in services.

Unauthorized migrants in the United States have paid billions of dollars into a Social Security system that desperately needs the infusion to avoid financial collapse (just like the waitress in our ice cream story needs the tips paid by customers to make ends meet).

According to the U.S. Census Bureau "Compared to the native-born, a significantly higher percentage of immigrants are of working age (between 28 and 54 years of age). As such, the Social Security Administration estimates that three out of four illegal immigrants pay payroll taxes, but can't claim the benefits, amounting to an "illegal surplus" of between $6 billion and $7 billion per year – it is estimated that $500 billion has the total net benefit to the Social Security System.

Another argument is that unauthorized migrants - mostly employed in low-wage, low-skill industries - drive down wages and take jobs away from U.S. citizens.

Howard Chang from the University of Pennsylvania noted this supply-and-demand argument is wrong: "...the demand for labor does not remain fixed when immigrants enter the economy," he argues. "Immigrant workers not only supply labor ... they also demand goods and services, and this demand will translate into greater demand for locally supplied labor."

A 2004 study by the Inter-American Development Bank estimated that the 16.7 million U.S. workers born in Latin America had a combined gross income of $450 billion in 2003, of which a whopping 93 percent was spent in the United States. It was also found that most paid both sales tax and federal tax. In fact, The Federation for American Immigration Reform estimated that state and local taxes paid by the unauthorized immigrant population in the United States totaled about $1.6 billion per year.

Unquestionably, our Nation is strong because of immigrant contributions, and it continues to benefit economically, politically, and socially from immigration.

Bottom line is, contrary to popular belief, they give more than they take. By supporting comprehensive immigration reform we are simply giving back our respect and gratitude.

Until next time. I'm off to get a chocolate sundae with nuts.

Daniel Garza, President of Hispanic and PODER Group

4 Comments:

At 12:43 PM, Anonymous Anonymous said...

Garza rules!

 
At 11:43 AM, Blogger Daniel G. Garza said...

I have no idea how the surplus of “illegals” (btw - I hate that word) matches up to the surplus of “legals”; it is not really the point of the article. The point of the article is undocumented immigrants give more than they take; I thought that was pretty clear...

*It is estimated that the $500 billion figure is the total amount that has poured into the Social Security System since it’s existence, while the $6-7 billion figure is the annual amount.

“ illegal immigrant workers in the United States are now providing the system with a subsidy of as much as $7 billion a year.”” New York Times
http://www.nytimes.com/2005/04/05/business/05immigration.html


“An estimated three-quarters of them paid federal taxes in 2002, amounting to
$7 billion in Social Security contributions and $1.5 billion in Medicare taxes, plus withholding for income taxes. They also pay state and local sales taxes and (as homeowners and renters) property taxes.”
http://www.commentarymagazine.com/article.asp?aid=12201036_1

*Good catch on the $1.6 Billion figure.
The 1.6 Billion dollar reference is actually a State number; it should read “In California alone...

Hope it clears things up.

Daniel

 
At 11:24 AM, Anonymous Anonymous said...

Hey Dan,

Two interesting web posts that you might find interesting, the first from Richard Rodriguez, the second from Victor David Hanson.

Ah yes, Garza Rules!

http://www.cato-unbound.org/2006/08/14/richard-rodriguez/mexicans-in-america/

http://www.cato-unbound.org/2006/08/16/victor-davis-hanson/rodriguezs-stream-of-consciousness/

 
At 3:48 PM, Anonymous Anonymous said...

I agree Rodriguez is good and gets the better of the debate with VDH, but, nevertheless, Garza rules! And Pfeifle has returned!

 

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