The border wall will pay for itself in 5 years

Newell Normand
Tuesday, March 13th

The Federation for American Immigration Reform has released a study of what each immigrant costs the United States government. Newell was joined by Matt O'Brien to discuss how the border wall would eliminate the number of unwarranted crossings. 


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Got a number attacks coming in these numbers come from the national academies of sciences engineering in medicine study that was done on Ken or. Aboard a wallpaper itself then. A number of other attacks Ascap or what about the taxes that are being paid that was taken into consideration. This is the average net fiscal burden taxes paid. Minus service is used also very conservative in their approach because they use the net present value. Of these services use which means that this is done because the cost or benefits years from now or valued less. In economics relative to more immediate cost. So if you were to take the net present value out. That number a 74000. Jumps to about a 140000. Dollars which makes them. The picture even worse. We Emmental broad director research for a fair Federation for American Immigration Reform in former assistant chief counsel to. I peace join in this welcome to show that. Glad to have you back again. Matt it seems as though this it's. These studies have resurfaced again in in light of the up president looking at the border wall and in all of the issues around there and the numbers are actually astonishing. The numbers are unbelievable and he you know a lot of difference but he's come to different conclusions but we had a common sense would tell you. If you bring a bunch of people here who are not employed and give them freebies it's gonna cost the taxpayers money. Will the study seems to be very conservative and it in its approach by taking you know the taxes paid by by these folks that do end up working here and and also applying the net present value of the benefits that they receive. You know this number of different approach is key to all of these things the trouble with the conservative approaches is that they understate the problem. And there's own calculations. Indicated that illegal immigration is costing us a 116 billion a year. And that would include cost the local state and federal level. That's correct and it does take into account the taxes paid not only income taxes. But the excise and other taxes that are are typically paid by illegally and and we came up with a figure total tax paid. Of about nineteen billion which. Does not even come close to paying for the services that these individuals consider. Yes I'll look at your studying it says that the total national cost is right out of a 135. Billion dollars minus the total taxes paid which includes federal income tax and a sales taxes and otherwise that. Nineteen billion dollars for difference of 416 billion. That's current commitments. Stunning number. And now would be on and that's annualized. So I mean even if you know this stuff it's so that the fact is it is that if you just stopped. A very small percentage of illegal crossings at the border. The wall would not only pay itself but the country would end up on the plus side and that you twice. Yet without a doubt it would pay for itself very quickly you know we did they need. A study called the current state of the border cents. How wild back and our calculations we found you can build the serviceable wall for about eleven point 25 billion. I could build a really fantastic Walt for about 25 there. I'm so that means at a 116. Billion it would take them very short period of anywhere between state. Five to ten years that while it completely paid for itself and then afterwards that means that 116. Billion. Cost. Is actually going back influencing the taxpayers the United States require. You know Matt I mean has been a lot of talk is an and I and I get why they wanna come across the border again it I mean this country's the best country in the world we have so much more to offer. You know but it begs the question of when is Mexico get their act together. Well this is a good question I recently had a group of about border officials from other countries in here to talk about the US and how it handled the problem. And that was when the things they were sort of define it to think well what about you know people that are injured that we US and I asked them. Why is US responsible for that at some point don't you all have to take account of what is going on your own countries and begin to fix the problems. And I had a lot of heads nodding around the table as basically yes I did definitely that's true. So when we think about. Our approach. You know and we think about. What we're doing relative to NAFTA and all these other things I mean what is there something else that the country should be doing to try and improve the plight in Mexico to deal with the help deal with this immigration problem. Well sure wouldn't think to go a long way toward helping to improve the problem and Mexico would be for the United States stop acting as a safety valve. Right now Mexico is paddy did it corrupt political system since at least the end of the Second World War. And the government because he has failing economy Government of Mexico is reliant on remittance payments that come. Back for Mexican nationals living in the United States. And so essentially by allowing massive amount of both legal and illegal immigration from Mexico to US. We're finding the continued oppression of the Mexican people. Why it's terrible government to take it back together. So how how does a government tracked is. Aggressive in his own or asleep these payments going back and forth across the Mexican border as they do to overseas payments. No not at all as a matter of fact we don't tax the payments we have brought ideas from studies have been published. And people would it have looked at certain days whereas the the people send money reported that sales. But right now the Internal Revenue Service does not tax these payments so we we really don't know how much money in total is going abroad. But we have the means to do so because we do it and as a relates to other countries. Especially those that we've marked as being. Opposed to the best interest of the United States correct. That's corrected in addition all of the into these states and the money to do the wire transfers have reporting requirements. So the data is available could easily tracked this and we could easily placed a reasonable tax on this money. Others believe it's going out of the US economy that's not being spent. And here it's being spent the brother and as a result the it doesn't generate sales taxes excise taxes during the things they normally would. If it was regular folks spending your money here in the US. So why the duplicity. My. You know I think it's a political. Hot potato and I think a lot of people in this sort of open borders pro illegal means camp. See this as a program of foreign aid so they don't wanna see people discouraged from then that money abroad. But you know in order to have a successful immigration policy don't you need to succeed in all of the silos and as being a very important silent. Sure you have to make sure that you it's as exceed excuse me across the board and and and this is one of those things. But cost they're able to this effect literally every aspect of American flag from health care to fire and police departments. Education costs. And so what we're essentially doing is in the interest of protecting people who have come here illegally. We are taking away from Merrick and who are the people who quote paid taxes make this country run. And they have it reasonable expectation that the government is gonna look out for their interest and protect them. That's set to basic function of government. So as we continue to see any number of you know actions by local governments now standing in the way. Of the federal government and and a number of cases now that are going to be flowing through the courts where it is. It two years from today if you and I sit near talk and where does where where are we. Really depends the ninth circuit where a lot of these cases ago on the covers California and Arizona and few the other places. That have high illegal alien populations and they tend to lean very left and in in certain. Cities and towns and California across the state. Is probably going to rule against the government in these cases on some kind of weird. Yeah logical legal argument that it will be dependent on the Supreme Court to break this year. So a lot of this depends upon how activist the judges on the appellate court hearing these cases are any particular point in time. And you would definitely have very different you know taxes say if post California. So the most recent court decision that said that you know I think that the president didn't have to Wear worry about some of the EPA concerns relative to the construction of the wall. Do we see that as is a bright light in this overall. You know issuing. I think that it is one of the few with a bright light beer with its recently he had district court judge found that. It was appropriate for the president to rescind the doctoral program and that was seen as a positive case. But that was one that was kind of dim light because the judge in addition the decision on the fact that. The truck administration has given significant noticed before rolling back the program. Any sort of indicated that had that not been done it might not have been appropriate. How much hope that the judge can come up with a decision that it's inappropriate to roll back the program. But the president who put it place had no authority to enact. Well I guess in the balance of interest and a preservation. You know. That human rights in just. That's a see what they're trying to accomplish by by given a notice but it. It would seem to me that we can in the court system that we're gonna hopefully get to move quickly beyond these issues. That would be fantastic because president trump came in with a very well thought out immigration agenda. Which is really aimed at protecting the interest the United States. He's been stifled their turn all manner of ridiculous lost seats and you know what we're seeing in California is latent resistance to federal barred. Yup well I guess this issue will continue on Mandela is. And and unfortunately I just spent the last hour talking about the Rex Tillis and you know firing over tweet is seems as though week there's momentum and and you lose momentum and has momentum and you lose it again because of all that's gone on and it's seems to be a lot of instability. It it it does but this is a president who refused to business and firemen and he and much of this administration. Is still very. I think they're learning that we've had things worked in government. Sometimes that leads to a bit of chaos but I think overall his record particularly on the immigration issue has been fantastic. He does seem to be pushing back hard against California he does seem to be taking. Enforcement's seriously this the first time in probably three decades that we had meaningful work site enforcement. So recently immigration issue being appeared to be positive. Yeah I would agree with you there and thank you so much for joining us Matt O'Brien director research for a fair and a former assistant chief counsel for ice we really appreciate your insight.