Tuesday, March 24, 2015

Immigration and Negative Returns on Investment

[Robert] Rector [of the Heritage Foundation] told the House Oversight and Government Reform Committee last week that the lifetime costs of Social Security and Medicare benefits paid to the millions of immigrants to whom Obama is granting legal status will be about $1.3 trillion. 
Rector's calculation is based on his assumption that at least 3.97 million immigrants will receive legal status under Deferred Action for Parents of Americans and Lawful Permanent Residents, and the average DAPA beneficiary has only a 10th-grade education. 
DAPA recipients, according to Rector's calculations, will receive $7.8 billion every year once they get access to the refundable earned income tax credit and the refundable additional child tax credit. Those EITC and ACTC recipients will also be allowed to claim credit for three years of illegal work, which will sock U.S. taxpayers for another $23.5 billion.

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The average DAPA-eligible family already receives about $6,600 a year in means-tested welfare benefits. That includes food stamps, school lunch (and breakfast), Medicaid, the State Children's Health Insurance Program and the Special Supplemental Nutrition Program for Women, Infants and Children.
 
Many Americans labor under the false assumption that because most immigrants are hardworking, they do not depend on welfare assistance. In fact, as Rector patiently explains, most welfare benefits go to households with children headed by a low-income employed adult. 
Rector estimates that the combined cost of means-tested welfare benefits the immigrants who came here illegally now receive, plus other goodies such as EITC and ACTC cash, will encourage increased illegal immigration in the future.

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Nearly a third of "English learners" in U.S. public schools are third-generation Americans who still are not speaking English at home, and the Hispanic illegitimacy rate is 53%. The cheap labor welcomed by employers is not only a huge impediment for American job seekers but also a big expense to taxpayers, who are hit with new costs of schools, hospitals and prisons.

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