Asian Journal- The Filipino-American Community Newspaper

COMPREHENSIVE immigration reform and the economy - you can’t discuss one without discussing the other. Over the past couple of weeks there has been a lot of talk not only about the economy, but also about the possibility of comprehensive immigration reform.

Although President Obama has recently indicated that he may begin the dialogue required for the passage of comprehensive immigration reform, it is unlikely that any comprehensive law will pass Congress in 2009. Not this year, not in this economy. Nevertheless, the current administration remains committed to comprehensive immigration reform, citing it as a top priority. Indeed, President Obama made a promise to "pursue genuine solutions day-in and day-out [including] immigration reform that will secure our borders, and punish employers who exploit immigrant labor; reform that finally brings the 12 million people who are here illegally out of the shadows by requiring them to take steps to become legal citizens." As previously discussed in past articles, President Obama will first need to tackle the current economic crisis, including the unemployment rate facing America before a comprehensive immigration reform package becomes politically viable. However, there is indication from public policy groups and organizations that America is turning the corner and may be ready to address immigration in the context of this economy.

One such organization, the Immigration Policy Center, recently released a report that found that the legalization of undocumented immigrants would actually increase government revenues by bringing more workers into the tax system. The report also noted that "enforcement only" policies are expensive and ineffective, and legalization would increase the already established economic benefits of immigration. This report is especially relevant given the current economic stimulus plan is based in part on government spending which necessarily requires revenue. For example, the "underground" construction industry alone denied an estimated $272 million in revenue because employers did not pay payroll taxes and another $70 million in lost personal income taxes. Although comprehensive immigration reform including a legalization program would not recover this loss revenue completely, it is a step in the right direction.

Moreover, the report found that workers with legal status historically earn and spend more, thereby contributing to the economic recovery and ongoing health of the United States. Specifically, after the 1986 Immigration Reform and Control Act, workers experienced an average hourly wage increase of 15% after four to five years. Furthermore, legal status allowed workers to move into higher paying jobs, leading to an increase in not only federal and state income taxes but also providing immigrants the ability to buy more goods and services. Such an increase creates additional jobs and generates even more revenue from sales and business taxes.