Speech #960171916

This cost is attributable to higher outlays and lower tax receipts. By reducing our present unemployment level to 4 percent. we could conceivably cancel out the deficit for fiscal year 1980a savings which could be passed on to the already overburdened taxpayer. Admittedly. there would have to be an adjustment made in the above revenue figures because some illegal aliens have taxes withheld. However. there is growing evidence that these withheld taxes do not cover total tax liabilities of illegal aliens. A recent report by an Internal Revenue Service study team designated in the spring of 1978 to evaluate unreported income problems found that most are nonfilers and many work completely offthebooks. Although based on incomplete data. this report states that the income of illegal aliens who are nontax filers amounts to $5 to $6.6 billion annually. These figures support an IRS test program in 1974 which indicated a high frequency of tax noncompliance among apprehended illegal aliens. There are also indirect costs that are associated with high levels of unemployment. The Joint Economic Committee held a hearing on October 26. 1979. to examine the social costs of unemployment and Congressman MITCHELL. who chaired the hearing stated: Unemployment increases generate a physical and mental pathology that serves as a burden on society. The trauma of unemployment increases homicides. suicides. drug related crimes and the incidence of admissions into state mental hospitals and prisons. These are real costs that must be considered when discussing the issues of unemployment. I believe that it is time we recognize that our "do nothing" policy on illegal aliens does contribute significantly to unemployment and that such unemployment has substantial direct and indirect costs for our society. Mr. President.