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Report: Immigrants inject $1.6B into state economy

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By JEAN ORTIZ / The Associated Press

Wednesday, Oct 15, 2008 - 06:01:04 pm CDT

OMAHA — Immigrants add $1.6 billion annually in spending to the state’s economy and fill a critical role in the work force, according to a new study that was to be released Wednesday by the University of Nebraska at Omaha.

Officials with the university’s Office of Latino/Latin American Studies, or OLLAS, who issued the report called the study the first statewide quantitative assessment of the contributions Nebraska immigrants — both legal and illegal — make to the state’s economy.

Available data didn’t allow the report’s authors to differentiate between the economic impact of illegal versus legal immigrants.

But the policy brief does make a few inferences — the first being that undocumented migrants are largely employed and are contributing to production, employment and taxes similar to legal immigrants.

“Moreover, it would be reasonable to also assume that the economic contributions of unauthorized immigrants are more than likely underestimated by all accounts, and that their public costs are likely lower than for authorized immigrants or the native born as a whole,’’ a draft of the policy brief says.

The report’s author, Christopher Decker, an assistant professor of economics, was traveling and unavailable for comment on the study’s methodology or other details Tuesday. Jerry Deichert with the university’s Center for Public Affairs Research also contributed to the report.

Deichert and OLLAS Director Lourdes Gouveia did not return phone messages Tuesday seeking comment.

According to a draft of an policy brief that summarizes the report’s key findings and lays out policy recommendations, immigrants created about 12,000 jobs across all sectors of the state’s economy in 2006.

And the loss of the foreign-born work force could cost the state $13.5 billion and thousands of jobs.

The loss of immigrants would be devastating for the state’s economy, particularly in communities whose main industries depend on the “injection of a new and young labor force and a generation of children willing to stay in those communities,’’ OLLAS officials write in the policy brief.

Immigrants make up 5.6 percent of the state’s population, according to the report. It’s a 33 percent increase since 2000. But immigrants represent only 4.28 percent of the public sector costs to the state.

OLLAS officials lay out several recommendations, including federal immigration reform to remove unnecessary impediments to citizenship; state and local efforts focused on immigrant and community integration; and improved training programs, including those that boost English proficiency.

The brief goes on to say the report presents an opportunity to move from the “politics of division’’ — fueled by misunderstandings or denial — to the “politics of immigrant and community integration.

The state’s leadership must reject “paralyzing, anti-immigrant and anti-Hispanic rhetoric that often passes as informed analysis,’’ according to the report, and instead craft “informed policies that will prevent us from squandering immigrants’ contributions.’’


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Okie wrote on October 15, 2008 5:12 am:
" Ha! Will Nebraskans ever get over their hypocrisy? You hate the federal government but gladly accept 1 billion dollars in farm subsidies. You are angry with "illegal immigrants" because they are lawbreakers. Yet, if the money they contribute to the economy goes away,you will be whining about the lost funding. "

B wrote on October 15, 2008 5:30 am:
" I guess one could make some assumptions about illegal immigrants, even without solid data, good or bad, but the fact is they are STILL illegal, in many cases stealing identities, social security numbers, etc. I'm not against legal immigrants at all, but don't reward those who didn't come here the right way. Find a way to bring people who want to work legally, without giving a reward of amnesty to those who broke our laws. "

Zoomie wrote on October 15, 2008 6:18 am:
" So, we now have THREE studies concluding immigrants (legal OR illegal) generate more state income than they cost state residents! Univ of California study 6 years ago found illegals (alone) generated almost $2 billion more in state revenue than they cost the state; Comptroller-General of Texas concluded 3 years ago illegals generated $1.3 billion more in state revenue than they cost taxpayers; and now a study in NE concluding immigrants (legal and illegal) generate more than they cost! Notice a pattern developing? Meanwhile, from the other side of the argument I still see only anecdote to claim illegals are costing us a fortune! "

Pro Freedom wrote on October 15, 2008 6:40 am:
" Thank you LEGAL immigrants for being productive, adding to our economy and being a member of our great country. You are appreciated.

The LEGAL immigrant comes to be an American to be a citizen of our country to honor our flag and laws. When they receive their citizenship they are proud and honored. As a country we welcome them.

Studies like these make me so mad. They breed hate that isn't there. The frustration that Americans have is NOT and I repeat NOT with LEGAL immigration, but with those who come to our country ILLEGALLY. There is a difference and the two should not be lumped together. "

try an unbiased study wrote on October 15, 2008 6:52 am:
" This study would be more reliable if it was done by a group that doesn't have an agenda. As the last few paragraphs of the artile point out, the group is for "immigration reform". "

Taking jobs wrote on October 15, 2008 7:02 am:
" Ok - so "— the first being that undocumented migrants are largely employed and are contributing to production, employment and taxes similar to legal immigrants." These are jobs that could go to others. When in Rome.... become a citizen...learn the language... "

New to Lincoln wrote on October 15, 2008 7:39 am:
" This is only half the story, if immigrants inject $1.6 bB into the state how much do they take out? If you are going to do a story on this lets have both sides. "

Dont believe it wrote on October 15, 2008 7:43 am:
" When a study is done by an independent instead of a Latino study, then I might believe it. Until then, it's just their controlled study. They admit they can't differentiate between legal and illegal. My bet is the economic benefit is mostly by the legal immigrants. "

Lisa wrote on October 15, 2008 8:26 am:
" Give them citizenship. "

gargabe wrote on October 15, 2008 8:34 am:
" So, if its economically beneficial its ok to break the law? Even if you believe the study, which i don't, the borders need to be secured and stop the influx of law-breakers entering our country. For every 'good, hardworking illeigal immigrant' there are drug smugglers, murders and other felons. Get in line and do it LEGALLY! Then we can truly assess the value. "

mitchy_v wrote on October 15, 2008 9:30 am:
" The jobs would not be lost if illegal immigrants left, they would be filled by legal immigrants and other american workers. How many nebraskans are jobless? I am not saying there would be no impact, but not of great of an impact as the article tries to imply. "

-chet wrote on October 15, 2008 9:39 am:
" I would be curious to see the exact figure of how many dollars are wired to the immigrants homeland. The mass exporting of the dollar earned by domestic activity does NOTHING but bad things for the local and national economy.

That would make for a more interesting study, since it is impossible to talk about economics as if it was working in a vacuuum.


I ask this because there wasn't a immigrant I haven't run into, regardless of origin, that did thier best at shipping the most they could afford off to thier homeland. Similar situation is happening with the current economic troubles Poland is having, and thier foriegn workforce scattered around Europe. "

Not illegal wrote on October 15, 2008 9:57 am:
" The fact of the matter is that if companies didn't hire illegal and only hired those in the country legally the economic impact of those hired would be more than that of the illegals. Illegals send money back across the border so more illegals can pay coyotes to get here. Illegals do not pay proper income or social security taxes. Illegals drive down wage base making it impossible for legals to work and pay bills at the same rate illegals will work for. If companies and people were forced to obey the laws and pay as the rest of us do the economic impact could possibly double! "

Rusty Shackleford wrote on October 15, 2008 9:59 am:
" This is the sort of progressive thinking that must be embraced and expanded. If our state is to prosper we must be willing to overlook a few legal technicalities. I look forward to reading the next installment of this series titled 'Report: Drug Culture injects $3.2B into state economy'. The state’s leadership must reject “paralyzing, anti-drug and anti-money laundering rhetoric that often passes as informed analysis," and instead craft “informed policies that will prevent us from squandering the dopers’ contributions.’ The loss of undocumented pharmacists would be devastating for the state’s economy, particularly in communities whose main industries are theft and prostitution. Whole segments of our economy depend on the flow of so-called illegal drugs. For instance, when was the last time you saw a farmer or construction worker smoking a grape flavored cigar? How much 'bling' do you see on the average factory worker? And with more and more people switching to fuel efficient vehicles there is a real possibility that the only viable market for Cadillac Escalades will soon be recreational pharmacologists. Some Nebraskans are angry with "drug dealers" because they are lawbreakers. Yet, if the money they contribute to the economy goes away,you will be whining about the lost funding. Stop the hate and move some weight. "

oh come on wrote on October 15, 2008 10:11 am:
" Ok so many admit, even on the pro-illegal alien side that illegals make minimum wages or something similiar. So lets say this is the case, a family of 4 illegal aliens with both parents working 40 hours per week makes $10 per hour. The family therefore has an income of $40,000 prior to taxes. Their two children attend school which puts a drain of more than 10k per year. Now people who make 40k per year are not in the top tax bracket, in fact with two children they may not even be taxpayers with a taxable income of 0. They will be receiving the EIC which is a refundable credit. They may be getting paid money for not making so much. Just taking these basic figures into account, it is impossible for this family to be contributing more economically than they take. None of this factored in any health costs, transportation wear and tear on roads, or any other taxpayer funded services. "

Wow wrote on October 15, 2008 10:12 am:
" Wow. Comments from so many who are obviously afraid of people of are different. People who want to be surrounded by a white population instead of embracing new cultures and languagues that are presenting themselves. The United States is a country completely comprised of immigrants with the exception of Native Americans who have also got run out by our small minded hypocrites. Everyone's family came from somewhere originally and it seems that people nowadays forget that! It was not easy for our ancestors either! Who cares who did the study? It is a fact that they contribute positively to our economy and as for the comment about them taking away jobs; they are doing the jobs that no one else wants to do for a lot less money! Jobs are created because of them and I doubt that Enlish speaking Americans would even consider taking some of those jobs. You people need to open your minds and lighten up! "

Hey New To Lincoln wrote on October 15, 2008 10:15 am:
" New To Lincoln: Read the article again, it does state what percentage these immigrants are costing. It is a small percentage compared to their contribution. Pay attention before you comment. "

Response to Oh come on wrote on October 15, 2008 10:55 am:
" You type like you know what you are talking about. But you dont. If a person is an illegal immigrant, they cannot file for a tax refund therefore they will not receive EIC! They are paying taxes to our Federal and State governments and do not receive a tax refund. However, if you are Ameican Citizen who lives off of our government (welfare) you can file taxes and receive EIC...the more kids you have the more money you get in return. So who is actually getting the better deal here? The illegal immigrants who are working their butt off to make a decent life for their family or the American Citizens who are tooo lazy to get a job but continue to have kids and live off our government because they can. "

Saline Co. Working Guy wrote on October 15, 2008 11:10 am:
" Tell it to towns like Crete. All we hear from so-called "leaders" is the economic benefits of illegal aliens. What about the social costs? What would our savings be on Medicaid, housing costs, infrastructure, schools, food programs, etc. if all illegals and their dependents were forced to return to their country of origin?

The economy and our natural resources can't sustain the invasion. This onslaught of illegals from primarily one nation (MEXICO) needs to be halted -- now. Are you listening Legislature? Do what our national leaders won't: Grow some guts. "

Red wrote on October 15, 2008 11:25 am:
" to "Hey, New to Lincoln" - I read the article and I offer the following quote.... Moreover, it would be reasonable to also assume that the economic contributions of unauthorized immigrants are more than likely underestimated by all accounts, and that their public costs are likely lower than for authorized immigrants or the native born as a whole,’’ This is as it says an asumption that their public costs are likly lower, and just how accurate is an assumption - and a few paragraphs down - the following quote......."Immigrants make up 5.6 percent of the state’s population, according to the report. It’s a 33 percent increase since 2000. But immigrants represent only 4.28 percent of the public sector costs to the state." - for 5.6 percentage of persons to collect 4.28 percent of costs - means less than 1.32 percent are not costing the state....and I my calculations are correct - aprox. 76 percent of this group is being assisted by the state....now that doesn't sound like the end justifying the means....in my opinion.... "

response to response wrote on October 15, 2008 12:03 pm:
" So you have never heard of identity theft? You don't think that people who have assumed the identity of someone will file a return if they know more free money is coming their way? Assuming that none of them file to get their tax money back, you still cannot refute the fact that a family making 40k gross will pay about 4k in withholding for federal tax, up to a max of 10k total payroll taxes. Now you can elect to have nothing taken out, especially if you are not going to file, as you will not be hit with the under-withholding penalty. So lets say they have paid in 10k and received nothing back on a 1040. Those two children they have cost more than that alone in school costs as per-pupil costs are over 5k. As I said earlier, this doesn't even take into account a multitude of other costs. You will likely respond with they pay tax on groceries and gas and other stuff like that. People with 30k or less take home are not huge spenders so that 7% sales tax will not make up for the services they take. "

Alan wrote on October 15, 2008 12:10 pm:
" I love legal immigrants. I like to go to ethnic restaurants and festivals. I enjoy hearing different languages and seeing different customs and manner of dress. I don't however condone illegal immigration. It breeds contempt for the law and feeds the underground economy. My ancestors were all legal immigrants. "

Me wrote on October 15, 2008 12:14 pm:
" WOW you have it wrong we are not scared of them we are tired of them using our resources and us having to pay the tab. "

mitchy_v wrote on October 15, 2008 12:33 pm:
" The report is incomplete. Available data didn’t allow the report’s authors to differentiate between the economic impact of illegal versus legal immigrants. Also, the Internal Revenue Service allows them to file taxes by assigning applicants individual taxpayer identification numbers, but the internal revenue code really does not differentiate between legal or illegal status. It can't even share the information with other government agencies. Some illigals are paying taxes, but how many aren't? "

BC wrote on October 15, 2008 12:43 pm:
" Illegal is illegal. Drugs are illegal, but they appear to provide an economic benefit for alot of families as well. "

Way to go.... wrote on October 15, 2008 1:41 pm:
" I see by the comments on here that Nebraskans are again showing their true colors. Most of our ancestors were immigrants as well. These people work hard....and DO NOT FILE TAXES! Therefore, do not collect the EIC. They send money home to take care of their families. Doesn't take away fromt he fact they also spend money here. How many of the "out of work Americans" would do the job that an immigrant is doing? Not many! Try respecting them and treating them respect and you may find they're good, hardworking people. "

Hum wrote on October 15, 2008 7:34 pm:
" I'd believe that report like I'd believe in the tooth fairy! And "New
to Lincoln", welcome to those who think they are better and smarter than
Thou!!!! "

to WOW wrote on October 15, 2008 8:02 pm:
" I embrace all cultures and even work with cultures but I do not approve of illegal immigrants. Some of the comments on taxes is a 100% true. If they have a false ID are they going to file taxes??? So they take a 1 or zero deduction and hardly pay if any. While us...have to pay our share. Yes some of us LEGAL individuals can't afford to take the lower jobs because we can't net anything due to taxes. Since they don't pay--they are not losing anything but gaining. Do the math. We paid millions in education alone to teach them English and then they complain...what the heck do you want??? "

Buzzm1 wrote on October 16, 2008 1:14 am:
" Dear Legislators,

Mandate E-Verify for ALL employers, for ALL employees, and for ANY benefit, and the I.C.E. raids, as well as all of the expemsive new detention facilities, would not be needed.

The illegals would have to begin leaving of their own accord.

Think of the economic effect of giving the 7 million jobs, that the illegals have illegally obtained, using forged, or stolen documents, back to Americans.

Think of the economic effect of 60 billion more dollars being spent in our United States, rather than being remitted to Mexico, and South America.

Think of the money saved by decreasing I.C.E.'s effort.

Think of it, and then let's do it!!! "

no borders wrote on October 16, 2008 1:38 am:
" ditch the borders, and demand a right to free settlement!
an individual should be able to live and work in whatever part of the world they desire, unconditionally.

En contra de la xenofobia - un mundo sin fronteras!
Against xenophobia - a world without borders! "

we agree with no borders wrote on October 16, 2008 9:20 am:
" at least for corporations. why not for people too? especially a people who occupied this land first. "

Buzzm1 wrote on October 16, 2008 10:38 am:
" How much immigrants save state and local taxpayers
http://www.heritage.org/Research/Immigration/sr14.cfm "

Kristine wrote on October 16, 2008 12:38 pm:
" What kills me, is that you all hate 'illegal immigrants', but you think you know one just by LOOKING at them. It's racism plain and simple. That's what bothers ME about all of this. "

Dave wrote on October 16, 2008 1:36 pm:
" Illegal immigrants pump $1.6b into economy, meanwhile they use much more in services meant for LEGAL AMERICANS. Educating illegal anchor babies, food stamps, etc. AND they use fake documents to get these services. This story is a JOKE!!! "

biz wrote on October 16, 2008 5:31 pm:
" Next we'll see a study conducted by Exxon that reveals how beneficial the shipwreck in Valdez was for the environment. C'mon, does any one really give this study any salt? "

I didnt know... wrote on October 16, 2008 7:44 pm:
" I didn't know that this was news. If all of the immigrants, Mexican or otherwise, also illegal or legal, would just up and leave this country tomorrow... We would be in worse economic trouble then we are in now. Maybe some of the ignorant people in this state will start to get off their high horses. Probably not, but the thought is nice... "

Hey wrote on October 16, 2008 8:31 pm:
" you didn't write in the article how much they take of nebraskas resources!!!!!!!!How about the schools, medical, incarseration, housing, food stamps? Tell the whole story or don't bother. I want to see online assets vs liabilitys shown of the immigrants legal and illegal. Quit just blowing smoke. The illegals are still criminals.d "