Posts Tagged 'taxes'

Defending Illegal Immigration

George Skelton’s article “Illegal Immigrants are a Factor in California’s Budget Math”, in today’s L.A. Times is missing some benefits our economy receives from illegal immigrants. In his article, the only benefit illegal immigrants provide is:

Of course, illegal immigrants do pay state taxes. But no way do they pay enough to replenish what they’re drawing in services. Their main revenue contribution would be the sales tax, but they can’t afford to be big consumers, and food and prescription drugs are exempt.

What about the other economic benefits illegal immigrants bring to the California’ economy (in every economy as a matter of fact):

  • This group purchases goods. They might not pay a sales tax on food but goods purchased creates a demand for certain products. Demand for new products create jobs. An example would be if millions of illegal immigrants purchased cell phones. This would create more demand for cell phones and more jobs would be created in the cell phone industry.
  • Cheaper labor means cheaper products for everyone. Let’s say illegal immigrants are working for an average of $3 less per hour. The company which hires them would be able to offer their products to the general public at a cheaper rate. This benefits everyone who buys the product. Imagine paying $1 a pound for something instead of $1.50 per pound. You now have more money to spend on other things.

I can think of  a few more benefits, but you get the point. Illegal immigrants bring more to our economy than just paying sales taxes!

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What Sort of Budget do Californians want?

A Public Policy Institute of California survey shows the following trends in California voters:

  • By 51 percent to 42 percent, Californians say they would rather have higher taxes and more services than lower taxes and fewer state services.
  • Sixty percent also think K-12 public schools should be protected from budget cuts.
  • A majority of voters favor boosting the sales tax by 1 1/2 cents, increasing the vehicle license fee by $12 a year, adding a nickel a drink to the alcohol tax, raising the tax rate for the richest Californians and increasing corporate taxes.
  • And while Republicans are leading the battle for a state spending cap, the 70 percent of all Californians who now support those limits includes 67 percent of Democrats and 71 percent of independents.
  • One ominous note for Schwarzenegger is that 61 percent of likely voters oppose his plan to borrow billions of dollars against future state lottery earnings.

In general, this means Californians prefer higher taxes with more services. K-12 should not be touched. There should be a spending cap and no more borrowing.