You have 2 families: “Jim Legal” and “Jose Illegal”. Both families have 2 parents, 2 children, and live in California. While Jim Legal appears to be better compensated at $25 per hour, Jim also pays all of his own taxes and expenses.
Meanwhile, Jose Illegal has no documented income and is eligible for Food Stamps and Welfare. Jose Illegal’s children get free government-sponsored lunches. Jose Illegal receives a $500 per month Federal rent subsidy, which pays his rent.
The table below summarizes the typical differences between a law-abiding American citizen and an illegal alien performing similar work:
|
Jim Legal | Jose Illegal |
Job | Construction | Construction |
Hourly Pay Rate | $25.00 | $15.00 |
Pay Method | Payroll, taxes deducted | “under the table” |
Annual Gross Pay | $52,000 | $31,200 |
Amount after Taxes | $31,230 | $31,200 |
Medical Insurance | ($12,000) | $0 |
Annual Food | ($12,000) | $0 |
Annual Rent | ($12,000) | $0 |
Amount Left | ($4,770) | $31,200 |
At the end of the year, Jim Legal is $4,770 in the hole (probably on a Citibank credit card). On the other hand, Jose Illegal still has $31,200 in savings.
Is this the American Dream?
Hat tip to Joe K