Guard Our Borders

Euphoric Reality supports a blogburst each Monday -- the "Guard Our Borders" blogburst. Usually there's a reference, entry, or suggested subject for the blogburst, but I haven't seen one for this week (unless that entry about the poor cat was it...) So, I guess I'll just find something on my own...

Checking the news wires, the first listings all reference "businesses that need foreign laborers." Excuse me? Need? I guess this is just another person changing the meanings of words to fit their own usage, never mind what the words really mean.

There's no such thing as a business that "needs" illegals. Sure, some might enjoy paying some people less, and criminals might work for less, but that doesn't mean they "need" them. If a business would cease to exist if they stopped "employing" illegals, I say, "Good riddance."

The Asbury Press has an article that suggests America is "hooked on illegal labor." Well, some people are "hooked" on crack cocaine -- does that mean we should make it legal, give them more, and pay them to continue to use it?

I cannot find the bill now, but I know one has been introduced in Congress -- that bill would very quickly solve the illegal employment problem. The bill (please help me if you know the bill or the sponsor) would allow the IRS to effectively enforce immigration laws -- it would make it so that a company could not deduct the earnings paid to illegals.

So if a company employed $50,000 worth of illegals, that deduction for expenses would be disallowed by the IRS -- and the company could not write off that $50K in expenses -- meaning the company would have to pay taxes on that $50K as a profit instead of an expense. It might not stop illegals entirely (it would take stopping GIVING them so much stuff), but it sure would cut down on their employment -- one of the big reasons people come here.

(Belatedly linked to Euphoric Reality's Blogburst).

Posted by: Ogre at 04:52 PM

Comments

1 Foreign laborers does not equal "illegals"

Worker A will work for 5 years installing heating/air conditioning for $300/house in the Las Vegas sun. He'll work his butt off in those five years, completing 10 houses per week. Taking two weeks off, he earns $150,000/year. His employer, if he's lucky, makes $50/house after paying for his labor and the equipment installed in the house. After paying for the worker's training and equipment, the employer makes $22,500 by employing Worker A. After taxes, Worker A takes home $100,000 and the employer takes home $15,075 or $30.15 per house.

Worker B will work for 6 months under the same conditions. But Worker B's productivity is half of what Worker A will do. Therefore, in the six months he works, Worker B will make $39,000 and the employer will make $6,500 ($4,000 after paying for training and equipment). After taxes, Worker B takes home $29,250 and the employer takes home $2,680 or $20.62 per house.

These aren't made-up numbers or scenarios, they are averages for HVAC in Las Vegas, NV. Worker A is the "cheap" foreign labor. Worker B is the "expensive" domestic labor. Longevity and productivity expectations for these two types of laborers are spot on.

With Worker A, the employer's ROI is 600% vs. 107% with Worker B. Worker A pays $50,000 in taxes (including Social Security which he will never claim). Worker B pays $9,750 and he will claim Social Security. To complete the same number of houses in the first year, the employer has to employ twice as many people and make four times the training investment if he uses Worker B (the investment continues in years 2-5 for Worker B, but ends in year 1 for Worker A). That means four Worker B families using government services vs. one Worker A family, a reduction in taxes paid by the employer, and an increase in the home price.

So, with Worker A, the home price is lower, profits and take-home pay are higher, the tax burden is lower, and the taxes paid are higher. Who's getting hurt again? Oh, yeah. Worker B who doesn't want to work in the first place. So, his family will collect welfare paid for by Worker A. There's the true injustice!

Posted by: Brock at December 05, 2005 07:34 PM (582rg)

2 I was not directing this to foreign workers, but specifically to illegal aliens who are employed by companies in America.

There's numerous holes in your example, including the idea that worker B families will be using government services and worker A families will not -- when it is actually the opposite.

In addition, it assumes all the worker A workers will continue to work forever, while worker B workers will all only work 6 months at a time, and all worker B workers will be new, inexperienced workers.

And to even suggest that illegal aliens are paying for welfare for citizens shows your main point is WAY off. Instead, illegal aliens are using tens of billions of dollars of the welfare system while paying substantially LESS into the system -- these are documented facts (which I don't have links to right now, darn it...)

Posted by: Ogre at December 05, 2005 07:59 PM (/k+l4)

3 Do you know why America is fighting the war now and excatly who we are fighting?

Posted by: BlueLion at December 05, 2005 08:07 PM (/k+l4)

4 Not illegals, that's for sure, Bluelion.

Posted by: Ogre at December 05, 2005 08:57 PM (/k+l4)

5 "Worker A pays $50,000 in taxes (including Social Security which he will never claim)."

Of course no illegals work under the table and pay no taxes other than sales tax on the goods they buy.
Got it.

Posted by: Tomslick at December 07, 2005 09:30 PM (xNjHI)

6 And no illegals get any money from social security disability, either, I'm sure.

Posted by: Ogre at December 08, 2005 01:16 AM (uSCkp)






Processing 0.0, elapsed 0.0123 seconds.
18 queries taking 0.0103 seconds, 14 records returned.
Page size 9 kb.
Powered by Minx 0.8 beta.