Archive for the ‘Taxes and Illegal Aliens’ Category

ILLEGAL IMMIGRATION: A California Crisis is Coming to Your State

Monday, July 13th, 2009

By Elois Zeanah

What do President Obama and CA Gov. Schwarzenegger have in common?   They both support sanctuary cities, in violation of federal immigration laws; they both have an economic crisis on their hands; and they both issue IOUs.  Schwarzenegger could dent the California economic catastrophe colossally by signing an executive order that California would no longer be an outlaw state.  President Obama could stave off the stampede of taxdollars going to illegal aliens and save the Union by signing an executive order that banned federal funds to sanctuary cities.   But neither will because both put politics over policy and potential votes and campaign contributions over economic stability.  As a result, a California crisis is coming to your state.  Amnesty will only hasten the day.  Let’s briefly examine how illegal immigration contributed to the California crisis.  

 Illegal Immigration is a “Catastrophic Hit” to California’s Budget[1]     

California’s budget deficit is $26.3 billion, and just three items that fund illegal immigration are responsible for nearly half this deficit.  $10.5 billion per year is spent on just education, medical care, and incarceration for illegal immigrants.  These costs do not include welfare costs such as public housing and rent assistance, food stamps, free education and school lunches, Medicaid, SSI, unemployment benefits, Earned Income Tax Credit, and more.  While illegal immigrants are barred by federal law from received welfare benefits, they can use their children born in the U.S. to evade laws and get them anyway.  This is why “anchor babies” are also called “jackpot babies”.    

 Anchor Babies 


   Babies born to parents in the U.S. illegally are called “anchor babies” because they automatically become citizens and immediately “anchor” their illegal families to free federal, state, and local benefits.  45% of anchor babies are born to unwed Mexican teenagers.  They get on welfare immediately and can stay on welfare for life.  Birthright citizenship is an irresistible magnet to get free benefits.  There are about 400,000 new anchor babies born every year in the United States.  10% of all births in the U.S. are to illegal aliens.  In Los Angeles, 25% of all births are anchor babies.  One anchor baby is born every five minutes.   


A bill, H.R. 140 to ban automatic birthright citizenship was introduced this year in the House of Representatives to end this costly injustice to American taxpayers and to our economy.  Most other countries ban birthright citizenship because of security threats and because of unbearable costs which take invaluable resources and burden federal, state and local budgets and taxpayers.  It is shameful and a travesty that politicians refuse to follow the example of other countries to protect our nation and our economy.  The U.S. is the largest of only 33 countries in the world that grant automatic birthright citizenship to children of illegal aliens and temporary visitors, while 122 countries do not. (If you’d like to see a sampling of other countries who banned automatic birthright citizenship, see the article, “What Countries Ban Birthright Citizenship,” elsewhere on this website.) 


If Gov. Schwarzenegger and President Obama were really serious about shaving costs to solve economic woes, both would support H.R. 140 and urge its immediate passage to stimulate their respective economies. The Birthright Citizenship Act of 2012 was introduced in the U.S. House of Representatives to clarify the language/intent of “citizen” in the 14th Amendment to join other countries and stop the abuse of immigrants (illegal aliens and visitors on visas) who come to the United States to have children to give their children dual citizenship; to prevent them from entering military service in their countries; and to get free education, welfare, healthcare and other benefits paid for by U.S. taxpayers.    

Click to read the bill, who the sponsor and co-sponsors are, and what the status is.  If your U.S. Congressman has not co-sponsored this legislation, please call his/her office and request that he/she do so.  


Welfare Magnet 


An L.A. Times article on July 10, 2009,[2] gives the example of an unemployed illegal Mexican immigrant who has birthed four of her five children in the United States.  Her four anchor babies “receive a total of about $650 each month from the state’s CalWorks program.  She also receives about $500 in federal food stamps and other vouchers” each month. 

Free benefits for children born in the United States is a welfare magnet as strong as jobs.  The problem has gotten so bad that twice as many illegal alien households receive U.S. welfare than citizen households.[3]   This should be encouragement enough for Gov. Schwarzenegger to sign an executive order that California will no longer violate federal laws and treat illegal residents the same as legal residents.  And the fact that taxpayers pay $90 billion every year on welfare for illegal for illegal aliens [4]should be an urgent reason for President Obama to sign an executive order to enforce the ban on outlaw sanctuary cities.  This one act alone would force California to trim its budget as nothing else would – and would stimulate the national economy in a way Obama’s$787 billion stimulus package cannot. Many states throughout the nation are facing bleak budgets and illegal immigration is a factor in all.   

California’s budget problems are grimmer but the crisis in California will hit every state in the Union unless something is done to stem the unsustainable costs of illegal immigration. 



[1] “Illegal Immigration again in the budget spotlight, LAT, July 10, 2009

[2] Ibid

[3] Center for Immigration Studies, “Use of Means-Tested Programs”.  29.9% of illegal Hispanic households receive benefits versus 14.8% of native citizens.

[4] Robert Rector, Heritage Foundation, October 29, 2006 on CNN:


What is the Connection between Illegal Immigration and Taxes?

Monday, March 17th, 2008

By Elois Zeanah

There is a direct link between the taxes you pay and illegal immigration.  To set the stage:  There are two economic magnets that attract illegal aliens to the U.S. — jobs and free benefits.  You hear much about jobs but you hear little about free benefits.  This is unfortunate since taxpayers pay untold billions of dollars every year to support illegal aliens. 

$90 billion is spent every year just on welfare for illegal aliens.  These are hidden taxes.  A report by the Center for Immigration Studies reveals that government today spends over $300 billion every year on welfare for Mexican households — both legal and illegal.  If we round out the $90 billion each year to ILLEGAL immigrants, taxpayers pay about $200 billion more on LEGAL Mexican households.  Undoubtedly, many if not most of the legal Mexican households are a result of anchor babies and amnesty 20 years ago.  If Congress passes amnesty again (politicians now call it a path-to-citizenship), we’re told this $300 billion per year cost for welfare on Mexican households could go out of sight, skyrocketing into nearly a trillion dollars every year.

I single out welfare because social spending is the largest item in our federal budget.  And immigration is a huge part of this.  We pay more for welfare than we pay for our military.  The third  largest expense in the federal budget is interest paid on the national debt.  The national debt recently exploded to a historic $9.2 trillion.  In 2007, interest on the national debt was a whopping $430 billion of tax money.  Whoosh!  Like vapor!  $430 billion disappeared from our economy. The U.S. has dug a hole so deep in debt that foreign investors hold more than half of U.S. government debt securities.  China is one of our biggest creditors.

Do you remember when we were kids, we were told that if we dug a hole deep enough, we’d end up in China?  Well, it was true after all.  Taxpayers get nothing for the $430 billion in interest payments.  Instead of building jobs and helping our economy, our poor, our seniors, our veterans, our schools, and shoring up Medicare, Medicaid, our military, Social Security and roads and bridges, $430 billion a year is pushed through the hole of debt. 

Billions end up in China.  China then uses our tax dollars to build a stronger military to compete against ours, to engage in space warfare, and to buy U.S. businesses.  Economics is complex but common sense is not.  Is it in our best interest to make China (or any foreign government) Uncle Sam’s banker?  Consider some of the problems that China forces upon the U.S.:  Unsafe products such as toxic toothpaste and toys, contaminated meat, unfair trade dealings, and threatening military maneuvers.  Should the U.S. get tough with China to stop this?  Yes.  But do we?  No.  How can you get tough with your banker?

In 20 years our public debt has more than tripled.  Interest on this debt has increased from $195 billion to $430 billion.  How long has it been since the U.S. passed amnesty — and American taxpayers started paying to support illegal aliens?  Illegal immigration contributes mightily to our national debt.  It is one of the biggest contributors to the crises in education, entitlement programs, healthcare, and the federal deficit.  Yet two acts would solve so many problems — without tax increases.

If the U.S. would stop giving automatic citizenship to children born to illegal aliens, the U.S. would get rid of a powerful magnet for illegal immigration and, at the same time, solve funding crises in all the programs without tax increases!  A bill was introduced in Congress to do just that on April 19, 2007.  It is House Bill 1940.  If you have not signed this petition, please do so.  If your U.S. Representatives have not co-sponsored this bill, please request they do so.  (These are discussed elsewhere on this website.)  The second way to stop giving scarce tax dollars to illegal aliens is for the federal or state governments to mandate that business verify the legal status of workers.  This is so simple.  It is free and fast through E-Verify.  There is no excuse for the federal or state government not to do this.  Together, H.R. 1940 and E-Verify would stop taking tax dollars from needy programs and poor citizens and giving them to illegal households.  It has been proven that illegal immigrants leave states that verify the legal status of workers.  If illegal aliens who come to the U.S. for employment can’t find jobs, they won’t stay.  If illegal aliens who come to the U. S. for welfare can’t get free benefits by having anchor babies, they won’t stay. 

Funding crises cannot be solved if the U.S. continues to gamble our fortunes on illegal immigration.  If they do, they will tax the Middle Class into oblivion.  And I don’t have to tell you the fate of our beloved rich Uncle Sam.  Uncle Sam is on life support.  We still have time to save Uncle Sam, but for how long?  Decisions regarding illegal immigration will guide and could change our country forever. 

The National Academy of Sciences told us 10 years ago that a high school dropout immigrant imposes a net cost on taxpayers of about $100,000 over the immigrant’s lifetime.  “In the last 20 years through both legal and illegal immigration, we’ve imported about 11 million high school dropouts.  The net costs of those individuals over their lifetimes to the taxpayer will be about $2 trillion.  We simply cannot afford as a nation to bring in millions and millions of low-skill individuals who will eat up government services but pay virtually nothing in taxes.”

This price tag of $2 trillion is for the current 11 million immigrants who are high school dropouts — who came to the U.S. over the past 20 years since the 1986 amnesty.  Now let’s fast-forward to a forecast for the next 10 years by the 2006 Judiciary Committee Chairman, Rep. James Sensenbrenner.  He stated that demographic studies show that in the next 10 years, 20 million more illegal aliens will come to the U.S. if the status quo continues.  “They’ll flood our schools, our healthcare system will collapse … our social services sytem will end up being overtaxed … and we’ll see our economy collapse.”

So what are we to do?  Throw up our hands?  When I look at the three presidential candidates anad see that red phone ad at 3:00 a.m., I see something different.  Who’s calling?  Voters.  Voters are warning the president not to push that amnesty button which will explode our way of life and blow up the Middle Class. 

No politician can truthfully say he or she cares about low taxes, welfare reform, improving education, reducing the federal deficit, and solving problems of healthcare and Social Security if he or she supports illegal immigration or amnesty in any form.

 The taxes you pay is tied directly to the costs of illegal immigration.  Unless politicians running for the presidency and for Congress understand that we the voters are no longer fooled by their rhetoric and that we expect them to stop spending our taxdollars to support illegal aliens, we could reach that point of crisis that the red phone symbolizes.  Voters must place that urgent call. 

Sources: Robert Rector, Heritage Foundation; PEW Hispanic Center, “Unauthorized Migrants, Numbers and Characteristics”; CIS “Immigration’s Impact on Public Coffers”;Bureau of Public Debt, U.S. Dept of the Treasury; The World Almanac and Book of Facts 2008; “National Debt load is a fiscal time bomb” by David Lazarus,

How much Money do Illegals send out of the Country Every Year?

Tuesday, October 23rd, 2007

In the analysis of the financial contributions made by illegal immigrants to our economy, consideration must be given to the loss of billions of dollars every year that illegal workers make in the United States but do not spend in the United States.

The federal government estimates that the remittances of illegal workers (money sent  to families in foreign countries by using electronic wire transfer methods) cost the U.S. $27 billion per year.  This is money that will never be spent in the United States.

 (A discussion on how much illegal immigrants contribute in taxes and receive in free government benefits follows.)

Do Illegal Immigrants Pay Their Way Through Taxes?

Tuesday, October 23rd, 2007

By Elois Zeanah

Do illegal immigrants have an overall positive or negative financial effect on the federal budget?

Many studies have been done on this subject on the national level.  Generally, it is agreed that illegal immigrants have a negative impact on the federal government and that illegal households are subsidized by taxpayers.  One of these studies is by the Center for Immigration Studies.  This study is available online.[1] 

This study states:  “…that illegal immigrant households create a combined net benefit for Social Security and Medicare in excess of $7 billion a year, accounting for about 4 percent of the total annual surplus in these two programs.  They create a net deficit of $17.4 billion in the rest of the budget, for a total net loss of $10.4 billion…if the Social Security totalization agreement with Mexico signed in June goes into effect, allowing illegals to collect Social Security, these calculations would change.”  

(For information on the Social Security Totalization Agreement, which gives Social Security to illegal and legal immigrants from Mexico, see the “Social Security Totalization Agreement” post on this website.)

[1] “The High Costs of Cheap Labor:  Illegal Immigration and the Federal Budget,” Center for Immigration Studies, August 2004.