Immigration to America: past and present

With all the immigration talk lately, I’ve spent my spare time reading about the issues.  Tucker Carlson said tonight that immigrants do not benefit the United States economy (at all).  I disagree and think that notion is the hurdle in immigration argument today.  The guest’s response was most economists agree immigrants furnish the economy; it’s true, and makes me think of a recent article I read.

[A brief history] The history of immigration to the U.S. is diverse.  Europeans first sought civil liberties in the new nation.  The 1790 Naturalization Act was the first policy naming U.S. citizens, who were free and white.  Early industrial times called for immigration to the U.S. but it was slow at times, like during the U.S.-Britain War of 1812.  Immigration was necessary during times like the Potato Famine and Mexican Revolution, but even back then when life got hard, U.S. citizens were less accepting of immigrants.  In the late 1880s, the Chinese Exclusion Act barred people’s entry, but still immigrants poured into the U.S.

WWI frightened citizens, and in the early 20s immigration slowed.  Quotas were set based on the makeup of U.S. citizens’ origin nationalities.  In the 50s, that method was upheld, but was done away with in 65.  Though caps remained, the quotas were gone.  The change allowed more non-Europeans to enter, changing the country’s demographics forever.  Later, the 1990 Immigration Act raised caps and fueled immigration; numbers spiked.  (TPS was established.)

[Back to the point] I like to emphasize the country was founded on legal immigration, but we must remember DACA is a bipartisan focus, and not out of the ordinary.  So was the Regan-age decision to grant amnesty to the 3 million illegal immigrants present in the U.S. and to require employers to hire only legal residents.

The role of immigration has changed.  Immigration to the United States provided many with new opportunities, and though it still does, immigration now supplements the U.S. economy.  Let me explain why.

It’s necessary to know what an ITIN is; it’s the nine-digit code allowing foreign nationals, who don’t qualify for a SSN, to pay taxes.  Sec. 6103 of the In. Rev. Code prohibits the IRS from sharing taxpayer information with other government agencies not tied to taxing, or without a court-order; so ITINs cannot be used to control immigration.  ITIN mortgages allow property purchase, opening the door for immigrants to pay local taxes.

Among federal, state and local tax, it’s estimated 4.35 million undocumented workers paid $13.7B in 2015 (AIC).  About half of undocumented workers pay income taxes, and all pay state sales and local property taxes.  (There are an estimated 11 million undocumented immigrants in the U.S.)  Undocumented immigrants will pay their taxes because it looks better in immigration court.  

Many U.S. citizens base their anti-immigration sentiment on the lack of federal contributions.  It’s important to know, though, the CMS forbids illegal immigrants from receiving Medicaid.  This has been the case since 1996 welfare reform.  And undocumented workers contributing to federal taxes contribute to Social Security, but do not receive SS or Medicare benefits, unless becoming legal.  That said, immigrants pay into such services but do not get much in return, besides common services.  It is refugees who can access some services, especially for their children.

I mentioned the TPS program for Salvadorians because that’s the crux of my argument.  President Trump suggested he wanted increased immigration from Norway.  With issues such as the Brain Drain, it’s not a bad idea, but times have changed…we can look to the 1880s where nearly 10 percent of Norway emigrated here.  President Trump must realize we need the Salvadorians too.

Temporary Protected Status (TPS) is given to foreign nations of ravaged sovereignties, protecting them from deportation and allowing them to work.  The status was given to Salvadorians because of earthquakes in 2001 but now DHS Sec. Nielsen says the conditions are adequate for their return.  It’s very unfortunate Salvadorians face deportation after living so long in the U.S., but the status is called temporary.  However, my argument doesn’t circle the ethics of the decision.  It’s about the complications.

The Washington Times reported on industries affected most by the TPS revocation.  It listed construction companies, especially in the D.C. area, would feel it most.  The general manager at Independence Excavating, Inc. noted half its workforce was El Salvadorian, and discussed a basic economic principle: when the pool shrinks, costs of labor go up.  And the fact is over 30,000 Salvadorians work in the construction workforce nationally.

Salvadorians under TPS are qualified; they are willing to work in conditions many are not; and they pay taxes.  Also, a spokesperson from the Associated General Contractors of America said three fourths of members report a struggle in finding qualified workers.  To me, those facts add up to one conclusion: we need immigrants, and always will.

If there are less immigrants in the workforce, costs of labor will rise significantly.  And if  President Trump wants to tout his economic development and promote infrastructure, he must watch pulling the rug from under it.  Our low unemployment rate calls for prudence in monitoring the balance of skilled U.S. employees, blue and white collar, and qualified immigrants coming to the U.S.

We need immigrants just as much as we need contemporary and comprehensive immigration legislation.  Immigration policy should be tough, but fair.  Deportation is a difficult subject; for temporary residents, it may be fate, but it may also spell separation from families (who, if citizens, can then receive welfare).  Deportation gives strong immigration policy a bad connotation, especially in DACA times, and it just may not be necessary at all.

Much of our immigration policies are on the debate table (family-reunification, diversity visas and more) and subject to change within the coming weeks.  No matter how the laws shift, immigration is crucial to our society, and they must be amended with that in mind.


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