Ask the taxgirl: Tax dollars for illegal immigrant health care?

2008 April 28
tags: , , ,
by Kelly

Taxpayer asks:
Dear Taxgirl,

In the last couple months, I’ve received a spammy e-mail asking me to sign an “electronic petition” against a tax increase so the government can provide health care to illegal aliens. I deleted this whenever I got it, because it just sounds like some urban legend to me. I mean who in their right mind would propose this?

The other day in the US mail I received an update from my congressman which included a survey for his constituents to fill out and mail back. One of the questions was “Do you support a 71 billion dollar tax increase to provide government healthcare for illegal aliens?”. In my research I can not find any such pending legislation. Have you heard of anything or do you know where I could look besides the websites of the house & senate? I think my representative may just be trying to stir the pot. I do plan to contact his office, but would like to be armed with as much info as possible before I hold his feet to the fire.

Taxgirl says:

Well, it certainly sounds as though your Representative is trying to create some controversy… But I am not sure that I can help.

There is not, to my knowledge, a recent bill floating around which has as its main purpose, a $71 billion tax increase to provide government healthcare for illegal aliens. Here are some bills that reference health care and illegal immigrants:

- There has been constant chatter about a bill that allows the federal government to reimburse states like California and Arizona for money that those states expend on health care for illegal immigrants but that was resolved by law in 2005.

- Creating a lot of debate was the extension of the State Children’s Health Insurance Program. You may recall that a compromised version of the bill was passed last year and was vetoed twice by President Bush. The Senate was not able to override the veto. The Congressional Budget Office estimated that the total of that bill would be $71 billion over 10 years financed by increased tobacco taxes, and a change in timing of corporate income taxes in 2012. A version of that bill did, however, become law last year. You can find more information about the history of the bill here.

- But what I think they’re most likely referring to is a vague reference to an as yet unsettled universal health care bill. Some worry that the bill could extend taxpayer-funded health care to illegal immigrants. It is estimated that about 10 million of the estimated 47 million uninsured US residents are thought to be illegal immigrants. This has been a hot button issue for border states but has recently extended to states like Ohio where it became an election issue for the Gillmor seat.

I am not aware of a realistic bill addressing this issue that has been introduced in Congress. However, I could be wrong - it’s tax season and I having been following some of the bills as closely as normal.

If you have more - or different - information, let me know.

And chime in - where do you stand on universal health care? Should it be funded by taxpayers? And should there be limits based on citizenship or employment? I’m curious to hear what you think.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

from → ask the taxgirl, politics, tax policy

12 Comments leave one →
2008 April 28
jennydecki

I’m all for illegal immigrants getting tax funded healthcare! As soon as they pay taxes and social security…like everyone else that works. It’s that whole melting-pot-equality thing…pay into the system so you can get things out of the system.

I mean…that just makes sense, right?

2008 April 28
Kelly

Jennydecki - Statistics suggest that illegal immigrants are paying tax - the number of ITINs has risen dramatically and those are (generally) assigned to folks who cannot get a Social Security Number.

The catch-22 is that illegal immigrants cannot pay tax without an ITIN. Some immigrants are scared to get an ITIN because they are afraid they’ll be arrested for being here illegally. So we’re asking them to pay tax but making it difficult.

It’s a policy decision. Most folks agree that it would be impossible to return all of the immigrants said to be in the US illegally. The question becomes what to do with those here. Should we make it easy for them to pay taxes and perhaps become citizens? Or do we make it hard to become citizens but pay for their services ourselves?

A version of an amnesty program introduced by President Bush suggested that illegal immigrants who pay taxes could be considered for amnesty. The GOP had a tough sell on this. Tax has been a key component of most immigration reform bills.

More info about tax and immigration reform here: http://www.taxgirl.com/126-billion-reasons-that-the-immigration-bill-failed-to-pass-the-senate/

2008 April 28
Jon A

When all the grandstanding is set aside, what’s really happening is this: our elites want to permanently integrate 12,000,000+ cheap laborers into our society, creating huge profits for the rich and swelling the ranks of the poor, with the middle class footing the bill.

These people (1) have a much higher birth rate than Americans, and (2) have received little health care at home. So when they get here, they pack up the kids and make a beeline for any place they can get health care, placing an enormous burden the system. This burden is a tax on us all, whether we pay for it overtly through direct benefits, or covertly, by indirectly subsidizing the “freeloaders” on the system.

If you don’t believe this, visit the emergency room in any urban area, and you’ll see armies of Mexicans there, most with plenty of small children. If you want to know who’s paying for the services they receive, make a stop in the restroom and look in the mirror.

2008 April 28
Kelly

Thanks Jon.
You raise a good point. One reason that the GOP, in particular, is struggling with this issue is that its ranks are split for the very reasons you mention.

2008 April 28
Laura Spencer

Good thorough research on a controversial topic!

I haven’t received the spammy e-mail so I’m not sure what it said, but I think your response to this one is probably correct.

2008 April 28
jennydecki

It’s not my job to figure out how to make it work, it’s a solution that will work.

See, if they’re here already and already integrated into society…why kick them back out? I mean, will the middle class suddenly be good as gravy if we just get rid of all “those people” - no - because medicare cards are easy to photocopy and use among many folks the only way is to document and tax who we already have and try to stop the flood.

Or figure out better ways to integrate people into society.

But how are they “running for the nearest healthcare” when they don’t have any documentation? Are they going to the little town doctor in the middle of the prairie who doesn’t ask for SS# and photo ID?

How am I supposed to understand Kelly and the Catch-22 with Jon and the “make a run for over the border healthcare”

Am I missing something?

2008 April 28
Kelly

Hospitals are required to provide emergency care for all individuals, regardless of ability to pay. So, there is no “check” at the ER to see if you can pay for services before they are rendered. It’s not regular care visits that are being covered (to be fair, illegal immigrants are probably not getting regular care visits thus ramping up the number of ER visits).

2008 April 28
Kristen King

Um, wait, do *I* get tax-funded health care? I have no idea. (That’s terrible, I know. Note to self: Get informed.)

2008 April 28
Kelly

Kristen,
All folks get tax-funded health care to some extent…
For example, many hospitals and health insurance companies are tax-exempt - so we bear the cost of those shifted taxes.
Many health programs - like flu shots - are funded or subsidized by the government (tax dollars).
And on and on.

2008 April 29
Miki

Let’s see. ‘They’ pay taxes, but aren’t integrated into our system. ‘They’ should do the jobs that Americans won’t do and not complain when they’re stiffed for their money or thrown out of the truck at the hospital enterance when they’re injured on a job. Of course there won’t be any insurance coverage for them, but there isn’t for me, either. Nothing new there.

2008 April 29
Miranda

You go, Miki! At any rate, the whole universal healthcare thing is all about priorities. For one month in Iraq, we could universalize healthcare. For the record, we DON’T have the best healthcare in the world. But we pay more than anyone else. And our costs keep getting higher because our sickcare doesn’t encourage prevention. Instead, it encourages behavior that results in put-off care, over and over, until the emergency room (which costs more) is needed. And that’s by people who are here legally as well as illegally — and even people with healthcare coverage. It’s nice to point to illegals and say “If they were gone, everything would be fine.” But that’s just not true.

2008 April 29
Miki

American citizens used to fight for the underdog, now they are the underdog. I’m told it’s called progress, but you can’t prove it by me.

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