Florida’s new anti-immigrant law could be disastrous for economy
The Florida Policy Institute estimates that without undocumented workers, the state’s labor-intensive industries would lose 10 percent of their workforce.
In May, Florida Governor Ron Desantis signed into law SB 1718, anti-immigrant legislation that has caused panic and uncertainty in the state’s immigrant community. The law, which went into effect on July 1 of this year, could harm not only undocumented immigrants in the state, but also Florida’s economy.
SB 1718 imposes stiff fines on businesses with more than 25 employees if they fail to use E-Verify, in an attempt to crack down on companies that hire undocumented workers. It also provides additional funding for the state’s controversial “Unauthorized Alien Transportation Program,” which infamously airlifted asylum seekers from Texas to Martha’s Vineyard under false pretenses. The law even invalidates certain out-of-state driver’s licenses and criminalizes crossing state lines into Florida with an undocumented family member as ?human trafficking? It is no surprise then that the atmosphere of fear fostered by this law has caused some immigrants to leave the state altogether.
Undocumented immigrants are an integral part of U.S. communities. According to an analysis by the Center for American Progress, there are approximately 512,400 undocumented workers in Florida who work in industries that keep the country going such as the food chain, health care, construction and the care economy. Each year, they and their households contribute $4 billion in federal taxes and $1.7 billion in state and local taxes, and have a combined purchasing power of $18.6 billion. In addition to their tax contributions, these undocumented workers also support the social safety net; their employers contribute more than $1.2 billion annually to Social Security and Medicare (for which undocumented immigrants are not eligible) with payroll taxes. Whether the state’s new E-Verify mandate drives these individuals out of Florida’s workforce or drives them into the underground economy, the state loses many of these important economic and fiscal contributions.
There are also many industries in which undocumented immigrants are overrepresented and make up a large portion of the workforce. These industries would likely face major challenges, including worker shortages, if undocumented workers were suddenly prevented from doing their jobs, which would affect all Americans. The Florida Policy Institute estimates that without undocumented workers, the state’s labor-intensive industries would lose 10 percent of their workforce. The loss of these wages could cause a $12.6 billion drop in Florida’s gross domestic product (GDP) in just one year (about 1.1 percent) and, in turn, reduce tax revenues at the state and local level. It is not hard to imagine this becoming a reality. Following the passage of the anti-immigrant bill, viral videos have shown nearly desolate agricultural and construction sites.
The reality is that undocumented immigrants play a crucial role in the workforce. Attacks on immigrant communities will only hurt the United States. If lawmakers focused their attention on actually fixing our broken immigration system, they could stimulate the economy. Our research shows that offering a path to citizenship for all undocumented immigrants in the U.S. would increase GDP by $1.7 trillion over 10 years, create 438,800 new jobs, and raise wages for all U.S. workers, despite immigration status. We should strengthen the economy, fix the flawed immigration system and honor the contributions of undocumented immigrants, rather than weaken our economy by unnecessarily scapegoating immigrant workers.