Posted By GilaGuy on 03/10/2008 11:01 AM Posted By JasonY on 03/10/2008 10:44 AM
1) Mexico's economy needs to be improved so they have more incentive to stay and work there.
2) The corrupt government in Mexico needs to change.
3) Harsher penalties on those caught crossing illegally. I agree on all counts, though I think #2 can take care of #1 well. One thing I'd add is a huge and hefty tax on remittances. Part of what makes illegal immigration so attractive is the ability to send money earned here over the border to folks in Mexico. That is money that disappears from our economy. It is typically earned as cash, so it is not taxed, and there is nothing gained from it by way of sales tax or local spending since it gets up and disappears across the border. In 2006 a total of $62.3 billion (with a "b" ) was sent south to Mexico and Latin America in the form of remittances. That is a lot of money that was earned here which simply vanished into thin air. A hefty surcharge on such things would help us recoup some lost revenue, while providing a bit of a disincentive to those who would consider crossing illegally to take advantage of that. I would like to see the estimation on how much of this was earned as "cash" without taxes being paid on it. Without remittance more people would be trying to get into the US, not less. Remittance is a key economic stabilizer in many developing nations, most of this is legal activity, additional taxes on everyone who uses remittance is not the answer. World Bank Study: http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2005/06/08/000012009_20050608121914/Rendered/PDF/wps36380rev.pdf “It is expected that the volume of workers’ remittances will surpass $110 billion dollars in 2004. Workers’ remittances constitute an increasingly important source of income for many families, especially poor families, whose relatives have emigrated to other countries in search of better employment opportunities. Moreover, after foreign direct investment, workers’ remittances constitute the largest source of external financing for developing countries. For 25 developing countries, remittance flows represented more than 5% of their respective GDP in 2003.” The Law of Unintended Consequences hurts us all too often. Thanks, Higgs |