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Thursday, August 22, 2019

The 5.2% illegal alien tax

A Breitbart News report ripping the New York Times -- always a fun read -- revealed the true cost to American workers for allowing illegal aliens to work here.

$493.9 billion annually, according to the National Academies of Sciences, Engineering, and Medicine.

Illegal aliens and other immigrants lower wages by that amount. It is a 5.2% payroll reduction, a tax if you will on workers.

And unlike federal income taxes that hit the 1% hardest, this payroll tax hits lower wage workers the hardest.

Released on September 21, 2016, the report said:

  • Immigration does make the U.S. economy larger by adding workers and population. But a larger economy is not necessarily a benefit to natives.
  • Making reasonable assumptions, the NAS report estimates that the actual benefit to the native-born could be $54.2 billion a year. But relative to the income of natives the benefit is very small, representing a "0.31 percent overall increase in income" for native-born Americans (p. 128).
  • To generate that benefit, immigration has to reduce the wages of natives in competition with immigrant workers by $493.9 billion annually. But business gain $548.1 billion from these lost wages, for a net gain of $54.2 billion.

The same Democrats who promote giving the Chamber of Commerce cheap labor then turn around and pretend to champion the victims of illegal aliens by pushing for $15 an hour wages. The chamber is OK with that because it represents big business that can absorb the rising cost. The small businesses that compete with them cannot as easily absorb those costs.

The study also said, "immigrants do not pay enough in taxes to cover their consumption of public services at the present time. The NAS report presents eight different scenarios based on different assumptions about the current fiscal impact (taxes paid minus services used) of immigrants and their dependent children. All of the scenarios show that immigrants are a fiscal drain. The drain is as large as $299 billion a year."

Since the election of Donald John Trump as president, American workers have enjoyed record-high employment, the lowest unemployment rate since we landed a man on the moon, and actual wage increases that beat inflation.

In promoting his Breitbart News story, Neil Munro tweeted, "Many Americans are already working in chicken processing factories, and more will take the jobs when low-wage illegals are sent home and the starting wages are pushed up. Another win for Econ 101: supply and demand."

He is correct. Eliminating an illegal supply increases the demand for legal workers who cost more.

Illegal aliens help the 1%. Small wonder the 1% has the most vocal supporters of illegal aliens. Barbra Streisand wants cheap landscapers and maids, which is why Malibu is a sanctuary city.

And if we commoners object it is because we are deplorable.


  1. The Web.

    Woven of deception.

    Precisely Orwellian.

    The novels: "1984" and "Animal Farm".

    Are these still required reading in high school?

    Perhaps, but only so these can be "taught" to mean precisely the opposite of what they are written to mean, the opposite of what their author intended them to teach.

    The Web of deception is woven, the threads so intertwined both economically and socially, that untangling is next to impossible.

    Only swift severings can work.

    Two intrinsic qualities of all living creatures:

    Need and How to Get what is needed.

    Humans: Earn it OR Get it by other means.

    To Earn it, there must be opportunity to earn.

    To Earn it Honestly, there mus be opportunity to earn it honestly.

    MAGA works to provide this Opportunity, by reducing those forces seeking to Deprive this Opportunity from all.

  2. The Gannet owned Jackson MS Clarion-Ledger is running all kinds of sob stories about the families of the ILLEGALS arrested at the chicken plant. No tears here. The jobs have probably already been filled by Americans.

    1. Are they reporting about the illegal alien who falsely claimed ICE prevented her from breastfeeding has been charged with identity theft?

    2. Of course not Poopsie. Just preventing breastfeeding.

  3. 1900-1920 the only restrictions on immigration were due to health or the likelihood the immigrant would become a public charge. This "Great Wave" of immigration was largely paused in 1924 to give the US time to assimilate the massive influx of newcomers. The period from 1924 to 1964 was known as the "Great Pause."

    This Great Pause corresponded with a golden age for American labor, despite encompassing the Great Depression. Labor markets tightened, eventually, and union organizing boomed. After World War II, salaries rose, work hours decreased and fringe benefits improved, as employers chased relatively scarce labor (this included hiring African-Americans into industrial occupations from which they had previously been excluded). America created the world’s first mass middle-class society, with a relatively egalitarian sharing of wealth, and relatively prosperous and secure workers throughout many sectors of the economy.

    Politicians were smarter and maybe less corrupt then.

    1. The Great Pause was concocted and promoted by the Eugenics crowd, who used the piss-poor results of the Yerkes intelligence test given to Great War army recruits (many of whom were illiterate) to 'prove' that Kikes, Wops, Polacks, Slants, and other non-Anglo peoples were intellectually inferior and that by allowing them to continue to enter the country would permanently and ruinously pollute the US gene pool.
      I wouldn't call the Great Depression a golden age for labor. Maybe labor unions and communists, but not for workers. 20% plus unemployment for years and years sucks.
      The Golden Age for workers in the 1950's into the 1960's was mainly due to the US being the sole remaining large intact economy in the world, the others having been either flattened by warfare or prostrated by ruinous debt (Britain). This advantage disappeared with the rebuilding of continental Europe's and Japan's infrastructure and businesses, financed considerably by our profits.


    2. Tars, I hate to be that guy...I'm against abortion, eugenics is just as evil; some bureaucracy deciding who can breed is disgusting.
      But, as they say. But. We are only helping the mythical 1% by opening the borders and allowing Cheap-or Cheep, in the chicken plant- labor to just take the job an American WILL do. If adequately compensated of course.
      I've been typing on my phone so long I forgot my point, but God Bless.

  4. and the G.I. bill applied to all who served honorably.

    a very effective tool that brought a lot of black veterans into middle and upper classes.

    1. The GI bill forever changed America. Originally intended to keep the veterans from flooding the labor market (and to prevent the formation of American versions of the Freikorps units that plagued Weimar Germany) it enabled millions of veterans (my father included) to attain levels of education that would have been denied them in peacetime, which led to increased productivity, business creation, and job formation (of course it helped we had an intact economy whereas the rest of the world didn't). It also radically changed colleges and universities, who afterwards were no longer the exclusive bastions of the elite. One can imagine what the response of a freshman 24-year old veteran of Anzio to the bullying of an F4 senior.


    2. I can't bring myself to believe that bureaucrats and politicians are that smart, Tars.
      It feels more like a happy accident than a "plan".
      But I'm just a production guy.

  5. While not precise, a 10.2% tax on transfers to our southern neighbors (assuming illegal aliens keep half and send half home) would partially offset this on a macro level.

    It would go to the federal government and not low wage citizens. But it's a start.

    Fund the wall with it.

    1. LOL!!! "Wall???" That's a good one! Never gonna be a wall...never gonna deport illegals...never gonna end anchor babies.... Republicans are lying cowards.. every single one of them

  6. Remember when cutting lawns was summer work for high school and college students?

  7. We should tax all remittances illegals send back home at 95%. They can pay their fair share.