Thursday, April 05, 2007

Alien Labor Gains Net Hollywood Math

"Sour Grapes" - Grape fields, full of ripe grapes, ready to be picked in the South of the Big Valley (Arvin, CA). Image Credit: Edmund Jenks, Copyright-2005

Alien Labor Gains Net Hollywood Math

We often hear how producers of a successful Hollywood movie, you know, one that had very strong attendance figures (box office) is never is able to turn a profit.

Many joke that what is actually happening is “Hollywood Math” (while others call it creative accounting) where profits are sucked up and losses are recorded so that the production company does not have to pay out on contract deals that were based upon a percentage of profits.

Many argue that the influx of low-skilled alien labor helps our country in that it keeps us competitive in the world economy.

A real study of the gains netted through low-skilled labor contributions develops a different picture, so states a report from The Heritage Foundation.

When one begins to look at the actual cost to the social infrastructure - taking into account the outflow of money from the tax monies collected to these same low-skilled alien workers, one finds that alien labor is a losing proposition.

The joking reality of Hollywood Math has found a home (in reverse) with the logic and policies used by our elected officials. Our country pays out three times as much in Government supports and welfare programs than it collects in taxes derived from the gainful employment of low-skilled alien labor.

Alien labor is not a good deal for America. It just doesn’t add up to good “Box Office”.

Excerpts from The Washington Times -

Low-skilled aliens exact a burden
By S.A. Miller, with contributions from Stephen Dinan - THE WASHINGTON TIMES - April 5, 2007

Immigration reforms that increase the number of low-skilled workers entering the United States threaten to impose a high cost on taxpayers, says a study being released today.

The Heritage Foundation report calculates that for every $1 unskilled workers pay in taxes they receive about $3 in government benefits, including Medicaid, food stamps, public housing and other welfare programs.

It should serve as a warning to President Bush and lawmakers proposing to give illegal aliens a so-called path to citizenship or what critics call amnesty, said Rep. Lamar Smith of Texas, ranking Republican on the Judiciary Committee, which handles immigration bills.
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The report on low-skilled workers, who are defined as those without a high school diploma, did not focus on immigrants, but its authors say 25 percent of legal immigrants and 50 percent of illegal aliens fall into the category. About 9 percent of native-born Americans lack a high school diploma.

Using data from 2004, the report shows the average household headed by a low-skilled worker paid $9,689 in taxes but received $32,138 in benefits a year. The more than $22,000 difference is the "tax burden" which rises to $1.1 million over the worker's lifetime.

Mr. Bush has called for legalizing the estimated 12 million to 20 million illegal aliens in the United States, and for a new program to allow more foreign workers in the future.
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"The Heritage Foundation report proves what we already know, that illegal immigration is a drain to the American people," the California Republican [Rep. Brian P. Bilbray, chairman of the Immigration Reform Caucus] said. "At more than $22,000 a year, it's like having the American taxpayers buy everyone who doesn't have a high school diploma a brand new Ford Mustang convertible."
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In 2004, according to the Heritage Foundation report, the country had 17.7 million low-skilled households that together cost taxpayers $397 billion that year. Those households, without an influx of new unskilled workers, will cost at least $3.9 trillion over the next 10 years.

The Heritage Foundation plans to release a separate analysis focused solely on low-skilled immigrant households in the next few weeks.
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