Alabama immigration law's price tag? Up to $11 billion, says economist

[웃 910]

Only posting 2 snippets because I doubt anyone is going to read this 9 page PDF (but link is posted)

Alabama immigration law's price tag? Up to $11 billion, says economist

The law's economic costs include implementation, enforcement, and litigation expenditures;increased costs and inconveniences for citizens, other legal residents, and businesses; fewer economic development opportunities; and the economic impact of reduced aggregate demandas some illegal immigrants leave and therefore no longer earn and spend income in the state.The annual economic and fiscal impacts of the reduction in aggregate demand caused by40,000-80,000 unauthorized immigrant workers who earn between $15,000 to $35,000 a year leaving the state are reductions of about (a) 70,000-140,000 jobs with $1.2-5.8 billion inearnings, (ii) $2.3-10.8 billion in Alabama Gross Domestic Product (GDP) or 1.3-6.2 percentof the state's $172.6 billion GDP in 2010, (iii) $56.7-264.5 million in state income and salestax collections, and (iv) $20.0-93.1 million in local sales tax collections.

Conclusions and Discussions

This report presents an initial cost-benefit analysis of HB56, the new Alabama immigration lawand finds that the law is rather costly to the state. Economies are demand-driven so any policy,regulation, law, or action that reduces demand will not contribute to economic development nomatter how well-intentioned. Nobody can fault the intent of the immigration law, which targets illegal immigration, but the law itself is costly mainly because it reduces demand in the stateeconomy. Instead of boosting state economic growth, the law is certain to be a drag oneconomic development even without considering costs associated with its implementation andenforcement. Some of the law's costs and benefits are qualitative and others are quantifiable, butdifficult to estimate. While the law's costs are certain and some are large, it is not clear that thebenefits will be realized. From an economics perspective, the preferences of a state are not to be judged and therefore the issue is whether the benefits of HB56 are worth the costs.Many farmers and business owners have been complaining about and fighting the law. At best,the new immigration law might help to reduce illegal immigration and lower the unemploymentrate, but even those effects are not guaranteed. Economies have formal and informal components and the law is likely to drive a portion of the formal component into the informal,basically sending illegal immigrants out of state or underground. In either case, demand in theAlabama economy is reduced since the income generated by these people and their spending will decline. That results in a shrinking of the state economy and will be seen in lower economic output, personal income, fewer jobs, and lower tax revenues than would otherwise have been. Potential economic benefits of the law include saving funds used to provide public benefits to illegal immigrants; increased safety for citizens and legal residents; more business, employment,and education opportunities; and ensuring the integrity of various governmental programs andservices. The law's economic costs include the spending on its implementation, enforcement, and defense in court; increased costs and inconveniences for citizens, other legal residents, and businesses; fewer economic development opportunities; and the economic impact of reduced aggregate demand as some illegal immigrants leave and therefore no longer earn and spend income in the state. Assuming that the law causes 40,000-80,000 unauthorized immigrant workers who earn $15,000-35,000 a year to leave the state, the resulting decline in aggregate demand would have annual economic and fiscal impacts of reductions of about (i) 70,000-140,000 jobs with $1.2-5.8 billion in earnings, (ii) $2.3-10.8 billion in Alabama GDP or 1.3-6.2 percent of the state's $172.6 billion GDP in 2010, (iii) $56.7-264.5 million in state income and sales tax collections, and (iv) $20.0-93.1 million in local sales tax collections. The law is well-intentioned but just one cost component, the impact of the reduction in aggregate demand thatthe law causes, shows that the law will be costly to the state even without considering other costs.

http://www.scribd.co...Immigration-Law

Edited January 31, 2012 by ☠

[mawilson 2,133]

Potential economic benefits of the law include ... increased safety for citizens and legal residents

Can't put a price tag on that

[Gary and Alla 3,694]

This is why we need a simple HUGE tax on anyone that does not perform E-verify on every employee, and it needs to be nationwide.

The Alabama law is stupid. Can't possibly work. The ONLY thing that will work is to make it more of a risk to hire illegals than a benefit. Job done.

Edited January 31, 2012 by Gary and Alla

[Bad_Daddy 2,209]

Can't put a price tag on that

This is why we need a simple HUGE tax on anyone that does not perform E-verify on every employee, and it needs to be nationwide.

The Alabama law is stupid. Can't possibly work. The ONLY thing that will work is to make it more of a risk to hire illegals than a benefit. Job done.

[bislig2alabama 1]

This week the Alabama legislature returned to its yearly session and On the aganda was amendments to modify and strengthen the existing immigration law. The vast majority of Alabama Citizens continue to support the law. Thousands of illegal immigrants have departed Alabama and those jobs have been filled by legal residents. Our unem;oyment rate has decreased! Many new business adventures have opened including expanding tghe auto manufacturing plants here. Our schools have lost hudrends of illegals and as a result thousands of dollars that would have been speent on illegals are now being used to educated legal residents. There have been too many positive reasins to write about. The people supported the lawmakers who passed this law and for the first time in over 100 years Alabama now has a Republicen Governor, A majority of Republicans in both the state senate and house and there is only one state wide elected democrate left.

Thanks for reading this article and please support our right to a republican form of government.

[Bad_Daddy 2,209]

This week the Alabama legislature returned to its yearly session and On the aganda was amendments to modify and strengthen the existing immigration law. The vast majority of Alabama Citizens continue to support the law. Thousands of illegal immigrants have departed Alabama and those jobs have been filled by legal residents. Our unem;oyment rate has decreased! Many new business adventures have opened including expanding tghe auto manufacturing plants here. Our schools have lost hudrends of illegals and as a result thousands of dollars that would have been speent on illegals are now being used to educated legal residents. There have been too many positive reasins to write about. The people supported the lawmakers who passed this law and for the first time in over 100 years Alabama now has a Republicen Governor, A majority of Republicans in both the state senate and house and there is only one state wide elected democrate left.

Thanks for reading this article and please support our right to a republican form of government.

[웃 910]

The other day I ran into one of my wife's former coworkers. He is illegal. I decided to ask him some further questions.

Are you using somebody else's social security number? "No."

How did you get over? Did you walk over, pay a guide? "No. We paid the border agent at the crossing $5000"

What kind of documentation do you have? "I have a social security card, I do have a license because a few years ago it was easier to get, but it is now expired."

Is it in your name or somebody else's name? "It is in my real name. It is not in another persons name"

Where did you get your SS card? California? "No. Got it right here in Michigan!"

Do the employers know that it is fake? "No. It looks real but the only way for them to find out is if they are audited."

What can you do with those IDs? "I can file taxes no problem."

What happens if you are pulled over? "Nothing. I show my valid insurance and registration. I tell him my license is expired which it is. And that I don't have a social security number so I cannot renew my license. But I do have a valid Mexican license"

So they don't check your immigration status or anything? "No. The police and immigration are two completely separate entities. They don't work together at all."

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So anyways, I am not pro-illegal at all. But it looks like what I said before is right and most of you guys on this board have no idea how it works. Once you get over here you can buy fake documentation that an employer has no idea that it is fake. You can even get it in Michigan, I thought it was something that was only easily accessible in Texas or California or Florida. Wow! Must be really easy to get. Also confirmed that they are getting paid by paycheck, with taxes coming out, at least in the restaurant industry. This whole perception that a manager making $10 an hour is hiring a team of illegals and paying them $4 an hour is about the dumbest thing I have ever heard and anyone who thinks that has no idea what they are talking about.

I'm sure in construction it might be that way. Obviously housekeeping and landscaping is usually cash (but my housekeeper is Ukrainian and she is paid cash, wonder if she reports her income, ya right!)

Edited February 20, 2012 by ☠