Analysis of the Misconceptions of Undocumented Immigrants in The U.S.

Abstract

There are indeed more undocumented immigrants in the U.S. than ever before. However, the percentage of immigrants to the overall population is not too large in comparison to the overall times in history. As of today's data, immigrants in the U.S. make up an approximate 13.5% of the total population, most of which come from Mexico (Kao, 2010). Immigrants have always helped in building and thriving of the U.S. economy, and thus, there is no reason to believe that today's immigrants are any different. According to the U.S Citizenship and Immigration Services, more than 15% of the immigrants have been living in the U.S. for at least 15 years, and the majority of them (about 76%) are living on lawful status. The total number of U.S. immigrants is approximated to be 43.6 million people. Meanwhile, 'Why don't immigrants follow the law to become U.S. citizens?' Immigrants do not drain the economy or take the Americans' jobs, nor do they evade the law to become American citizens (Kao, 2010). There have been typical misconceptions made by the American people against the undocumented workers. However, it is worth noting that the claims are unfounded and untrue.

This research paper aims to provide evidence against the beliefs that undocumented immigrants notonly do not pay taxes but also have a negative impact on the U.S economy. The opinions and complaints are made based on fear and prejudice in society. Moreover, some Americans complain that immigrants do not pay into government services they may benefit from, but most cannot. These false beliefs and accusations have been expounded, and limelight shone on the real plight of the undocumented immigrants. It is foolish to believe that the economy would accrue more growth if the state got rid of millions of undocumented immigrants who are workers, consumers, entrepreneurs, and taxpayers. Until recently, many held a negative bias against, making the topic of immigration a hot-button all over the media. This research paper will benefit the majority who lack the information and also misunderstand the contention of undocumented immigrants.

Introduction

Background of the Research The most heard misconception is that undocumented immigrants do not pay taxes. In 2017, President Donald Trump, while addressing an immigration agenda in the said that immigrants cost U.S. taxpayers billions of dollars every year. He identified working-class U.S. taxpayers are left with the burden of paying for illegal immigration. Contrary to that tone by the President, the fact is that they pay taxes. Every fiscal year, many undocumented immigrants file tax returns and pay for the various government services and programs that they use. Data estimates from the Institute of Taxation and Economics proved otherwise to this persistent myth as it identified that undocumented immigrants’ file returns. A recent IRS research, i.e., from 2015 to date, showed that workers who did not have social security numbers; the highest number being undocumented immigrants, had paid $4.4 billion in income tax. Just the year before, undocumented immigrants had spent an estimated income tax of about $23.6 billion. The data had been compiled even without accounting for the workers who use fake Social Security numbers to pay taxes. This fake Social Security number is registered on the W-2 forms.

The undocumented immigrants pay tax for services they cannot even use, such as Medicaid and Social Security. Still, they are not liable for the earned income credit tax, but the IRS still expects them to pay. Despite the political rhetoric, undocumented immigrants need to pay taxes to create a paper trail that will show how they entered the country and how they are contributing towards the growth of the dollar hoping that one day, they would be granted citizenship (Barsky, 2017). Ask Americans to outline how U.S. residents pay taxes. They will only identify income and sales taxes. On the contrary, undocumented immigrants as U.S. residents pay taxes on every taxable good they purchase. These may include gas, new appliances, clothes, etc. They also contribute to property taxes because they pay rent or buy houses. They also pay for schooling and are the primary source funding for schools.

Undocumented immigrants are also painstakingly, associated with a possible increase in crime rates. Vetting conducted by FBI and the Department of Homeland Security shows that the undocumented immigrants are less likely to be involved in crimes when compared to their native counterparts. Harvard Sociologist, Robert Simpson also identified that immigrants are 35 percent less likely to commit violent crimes than the native residents. At the end of this research paper, it will be apparent that the American community should not engage in spreading misconception about the undocumented immigrants as disseminated by politicians and the media.

Methodology

The research sampling method was used in this study to obtain statistics and analyzed data that represent the entire population. The sampling method would help target the relevant economic data for the research. The qualitative approach was also applied to understand human behavior in the misconceptions against undocumented immigrants. The 'why' and 'how' aspects that affect the decision making for the U.S. people. Besides the research had concluded from statistical data to support evidence.

Content Analysis

Myths about undocumented immigrants is a common in the U.S. When the Americans give an unfounded response to these myths; they lack the answer for, 'How do you know that is true? If you decide to probe further and ask where they got the information, you will find most of what they hold in their mind are opinions and not facts.

Major Misconceptions

'They Take the Americans' Jobs.'

This is a statement that most Americans make based on what they see on T.V. The accusation is a false belief with the Americans complaining that undocumented immigrants drain the labor market, create competition at the lower end of the job scale and lower wages for the educated workers. The rapid globalization has reformulated the American job market, sending jobs overseas, and retaining others in the U.S. Large companies are no longer considering creating jobs in the U.S. (Kemeny & Rigby, 2011). They opt to hire the impoverished labor that is willing to take rates that American workers would not accept. That said, they strongly support immigration so that they can hire cheap labor. Low-paid undocumented immigrants increase the capital available for investment.

Moreover, they add to the economy, thus increasing consumption. They are willing to pay taxes to preserve their job in the U.S., which are their breadwinners. According to the American Immigration Council, there is little to no connection between the unemployment rate of native-born labor and the immigrant workers.

The unemployment rate in the U.S. is possibly arising from two trends: Better education and the aging population (Proietti, 2003). Workers have become more educated and are unwilling to take jobs that pay at low rates. The undocumented immigrants only have a small share of the civilian workforce across all industries. Moreover, unscrupulous employers are more willing to hire immigrants so as avoid providing benefits and also ignore the workers' safety laws. In return, they can sell their products and accrue a more significant profit margin.

'Immigrants Drain the Economy.'

This is again another misconception that undocumented immigrants drain the economy of social services that they do not pay for. These services include welfare, federal WIC (Women Infants and Children) food supplementation program, etc. The Americans complain that undocumented immigrants who are at working age utilize government services that they don't pay for (Mallet, Calvo & Waters, 2017). However, undocumented immigrants are responsible for some government benefits, but they end up not utilizing them. They don't want to use services that may cause deportation and result in them being deported. Meanwhile, the undocumented immigrants are eligible for some services like hospital emergency rooms and living in the federally low-funded housing with undocumented families. The list seems challenging to navigate, and that's why they choose to avoid utilizing the services.

Moreover, undocumented immigrants pay health costs to the federal, state, and local governments. It is estimated that those aged 16-64 pay about $11 for health care in each household. The undocumented immigrants pay taxes through their paychecks through deductions for government services they cannot access as anyone else does. According to reports from the President's Council of Economic Advisors and the CATO institute, the average immigrants pay about $80000 in taxes, more than they collect from government benefits. Immigrants with college degrees pay a net $198000 in taxes. The American Farm Bureau also stated that the U.S. economy would stand to lose as much as $9 billion every year if the guest labor in the Agricultural production industries is withdrawn (Pena, 2013).

Positive Impacts of Undocumented Immigrants On the U.S. Economy

They Fund the Social Security System

Not all undocumented immigrants file returns, most probably because some are hired with fake social security numbers. The government, therefore, has no means to monitor their earnings; however, the IRS can withhold taxes in case someone is using a fake social security number. However, those paid in cash can choose not to report their under-the-table earnings or file returns with their Individual Tax Payer Identification Number (ITIN). Safe to say, all undocumented immigrants fund government services by paying for properties and sales like all other residents. According to estimated figures from the Institute of Taxation and Economic Policy, these people pay local and state taxes of around $11.7 billion. Also, as workers receive their paycheck, they will have the taxes for Social Security, and Medicare withdrew from their pay. Even for those who register a fake Social Security number they still pay the payroll tax. A portion of the withheld tax is sent to the Social Security Administration as a retirement trust fund. 'We estimate that earnings from the undocumented immigrants result in a net positive effect on Social Security financial status generally,' The chief actuary of the Social Security Administration, Stephen Goss.

Lower Prices for the American Consumer Industries

Low wages paid to undocumented labor in the various low-skilled jobs cut the cost of production (Cengiz, Dube, Lindner & Zipperer, 2019). For instance, the consumer industries like restaurants, construction, and agriculture hire the workers at a cheaper rate. As the cost of production lowers, the price for various goods and services also lowers, which is positive for the economy. The technology and manufacturing firms are also relieved from the need to invest heavily in the labor-intensive production processes. The undocumented immigrants save jobs in some way because they are willing to take the responsibilities that the Americans would not accept.

The wage scale shifts significantly, with more competition for job positions. The natives who compete with the undocumented immigrants stand to earn an extra $25 a week as more low-skilled job positions are created. More individual income is good for the economy as incomes taxes increases, and the economy grows. On the contrary, if the undocumented immigrant labor was cut down, the Americans are not willing to take low-paying jobs, and thus, most processes would be ineffective or come to a standstill.

The Partnership for a New American Economy (PNAE)

Estimates showed that undocumented immigrants wielded a hoping $157.3 billion to the U.S. economy. This was from their purchasing power and the numerous money spent on U.S. businesses. This offers extensive support for U.S. citizens who can sustain their families and grow their businesses. In return, the economy sees a reduced number of families on the low-earning scale.

Also, approximately 912,000 undocumented immigrants are entrepreneurs and generate about $17.2 billion in business income every fiscal year. Data also indicates that the undocumented immigrants pay a more significant share of their income (8 percent) to the state and local tax rate. This is a clear indication that if the undocumented immigrants were granted legal status, an additional 8 percent per individual would be used for various services, thus growing the economy. If the President wants to develop a headlong economy, he should grant the undocumented immigrants a pathway to being citizens. If granted legal status, they will earn more, invest more, and also pay more in taxes, which will foster economic growth.

Verdict

Undocumented immigrants have a ripple effect on the U.S. economy- buying, working, investing, and paying taxes. If the Trump administration wants to improve the conditions of the native-born workers, it should seek to empower all undocumented immigrants to increase competition in the domestic workforce, thus increasing the number of pay-per head. Under suitable conditions, the abundant supply of workforce will attract more investors in the economy (Hess & Niessen-Ruenzi, 2007). Anti-immigration policies and misconceptions against undocumented immigrants have a little to do with economic reality.

Conclusion

In conclusion, the reality of immigration is not what many Americans see it or what is portrayed in the media. People should engage themselves in critical thinking and make decisions based on underlying facts and not reports by biased entities that have ulterior motives or hidden agendas. If Americans understood the real contribution of these undocumented immigrants, they should be given legal status and had the chance to work without the fear of being deported. If people understood the issues of undocumented immigrants, they should vote for reforms for DACA to help undocumented immigrants be granted legal status. There is a prevailing theory that more undocumented immigrants in the country simultaneously increase the supply of unskilled labor, which can offset technological advancement, which reduces the country’s competitiveness in the global market. However, this much of a mere misunderstanding as organizations are only willing to hire labor to increase the efficiency of their products. They only hire the undocumented immigrants for the low-skilled tasks and therefore have no connection to the level of technology applied in the production process.

Introducing many undocumented immigrants benefit the country in terms of overall production as it leads to more distribution in the labor market (Bisin, Patacchini, Verdier & Zenou, 2011). When the national welfare is increased, the consumption outweighs the cost of well-being, which leads to a more stable economy (Marjit & Mukherjee, 2010). The domestic retailers are also among the beneficiaries as they recognize more profits, which increases their savings and spending on various government services, which increases the overall benefits to the economy. President Trump made many promises to bring a new life to the U.S. economy, which was seemly stagnant. However, among the Trump's central promises was to get rid of the 11 million undocumented immigrants who live in the U.S. However, from the content in this research paper, it's clear that Trump was wrong in this promise. The economy growth would receive a big blow is the deportation policy was stimulated.