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Joe Legal & Jose Illegal - Basic Economics
Joe Legals
Jose Illegal
There are two families. Joe Legal and Jose Illegal – Both families have two parents, two children, and they live in California.
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Joe Legal works in construction, has a Social Security number, and makes $25.00 per hour with payroll taxes deducted –
Jose Illegal also works construction, has NO Social Security number and gets paid $15.00 cash per hour “under the table.”
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Joe Legal - $25.00 per hour x 40 hours = $1000.00 per week or $52,000 per year minus 30% away for state and federal taxes... Joe Legal now has $31,231.00 per year.
Jose Illegal - $15.00 per hour x 40 hours = $600.00 per week or $31,200 per year. Jose Illegal pays NO taxes out of his illegal $31,200.00 per year salary.
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Joe Legal pays Medical and Dental Insurance with limited coverage $1000.00 per month (in California ) or $12,000 per year. Joe Legal now has $19,231.00.
Jose Illegal has full Medical and Dental coverage through the State of California and Local ‘City of Angels ’ (L.A) Health Clinics at an annual cost of $0.00 per year. Jose Illegal still has his $31,200.00 yearly salary.
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Joe Legal makes too much money is therefore NOT eligible for Food Stamps or Welfare, so he pays for food at around $1,000.00 per month or $12,000 per year. Joe Legal now has $7,231.00.
Jose Illegal has no documented income therefore, he is eligible for Food Stamps and various forms of Welfare. Jo se Illegal still has his $31,200.00 (Cha-Ching!) .
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Joe Legal pays also has a house payment of $1,000.00 per month or $12,000.00 per year and he is now in the hole to the tune of (-) $4,769.00.
Since Jose Illegal... remember, has no documented income... he also receives a $500 per month Federal Rent Subsidy – this subsidy pays his rent at $500.00 per month or $6,000.00 per year – he still has $31,200.00 in his pocket.
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Joe Legal sees this happening and realizes he has to figure out some way to make ends meet or he is going to lose his house - so... he now is working as much overtime as he can. He finds a part time job on the weekends and evenings.
Jose Illegal has 20 nights and weekends off to enjoy with his family.
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Joe Legal's and Jose Illegal's children both attend the same school. Joe Legal pays for his children's lunches while Jose Illegal's children get a government sponsored breakfast and lunch. Jose Illegal's children have an after school ESL program.
Joe Legal's children go home after school. Joe Legal and Jose Illegal both enjoy the same Police and Fire Protection Services, but Joe Legal paid for them and Jose Illegal did not.
Joe Legal must repay educational loans for his children to go to college – Jose Illegal does not.
Therefore Joe Legal cannot afford to send his children to College – Jose Illegal can!
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California taxpayers (like Joe Legal) pay for all of Jose Illegal’s stuff. That totals over $42,000 in this example.
So Jose Illegal has his $31,200 plus at least $42,000 of value received each year or the equivalent of $73,200 after tax income.
Joe Legal is struggling and Jose Illegal leads a pretty good life.