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By Knight Kiplinger

The Kiplinger Washington Editors

July 3, 2008

The largest U.S. banks are hurting badly, and the pain is starting to spread. Most small and midsize banks are still ready to lend to businesses, but they're getting nervous. This week's Kiplinger Letter examines the outlook.

ALSO IN THIS ISSUE: Jobs, Employer Health Costs, Estate Taxes, Retail Retrenching, Legal Trends, Infrastructure Spending

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I am a strong believer border security, keeping track of work and student visas, etc but do you think that deportation of illegal immigrants is a waste of money?

-- Dingobiscuit

The Business Case for Immigration Reform

The failure to reform immigration laws is a threat to the economy and local governments are filling the vacuum with a confusing patchwork of laws.

Worth Reading: The Quick Take from Kiplinger

October 2007

Thomas J. Donohue

U.S. Chamber of Commerce

Thomas J. Donohue has been president and CEO of the U.S. Chamber of Commerce since 1997. He previously served for 13 years as president and chief executive officer of the American Trucking Associations, the national organization of the trucking industry. Donohue is a member of the President's Council on the 21st Century Workforce as well as the President's Advisory Committee for Trade Policy and Negotiations.

First, efforts to rewrite immigration laws collapsed because of fierce pressure from anti-immigration forces. Then a new plan by the Bush administration to require employers to fire workers with apparently phony Social Security numbers was blocked by an administrative judge -- at the request of business, labor and Latino groups.

Where does that leave the country and employers? "All the problems comprehensive reform was designed to address are growing worse," concludes U.S. Chamber of Commerce President Thomas Donohue. The influx of illegals continues -- as does a need for workers so intense that employers wink at immigration status and still see key jobs go unfilled. In fact, businesses are facing a nightmarish web of complex and often contradictory state and local laws.

But far worse, Donohue said in an October speech in Phoenix, Ariz., America's economic competitiveness is at risk. "We can either force companies to move offshore in search of talent, taking existing American jobs with them, or we can attract the best and the brightest the world has to offer here." Further, Donohue says complaints that immigrant workers are displacing U.S.-born workers are demonstrably false -- proven both by the difficulty employers have in filling jobs and by academic research.

Donohue outlines the Chamber's proposals for reform -- including the controversial call for allowing illegal workers to remain in the country legally, at least for a while. "Let's use our common sense," he says. "Why not take workers who can already prove they are hardworking and are law abiding, who already have a resume, if you will, with United States Inc., and make them a part of the fabric of our society? Plus collect all their taxes!"

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POSTED BY: emerlou (October 18, 2007 07:22 AM)
most of this is pure B.S. If you're not legal, go back and become legal

POSTED BY: Nomen (October 18, 2007 10:04 AM)
Why should anyone believe the Chamber of Commerce? Local multinational companies won't even give interviews to local engineering and computer graduates while at the same time testifying before Congress that they need more green cards because they can't find any qualified Americans. This business lust for cheap labor will have far more devastating consequences than slavery ever did.

POSTED BY: Dick Smith (October 18, 2007 10:33 AM)
Would some one please tell Mr. Donohue the immigration mess would not be a issue if the laws set in place by the Immigration Reform and Control Act of 1986 were implemented by the federal government from 1986 and complied with by U.S. businesses. I agree with all points presented by Mr. Donohue but he must understand that American citizens want secured borders first and the immigration issues resolved second. Frankly, they do not trust the promises of federal government.

POSTED BY: WBWilhite (October 19, 2007 11:35 PM)
With people like Mr. Donohue in charge of things, there will never be any reform. According to his logic, why should there be any limits to any immigration? Why not open the borders wide open? All these new Americans will enrich us by taking jobs at lower wages than Americans need to support their middle class ambitions. The immigrants will take jobs without benefits too. And they will pay taxes to help support the elitists who run things. They will help the Mr. Donohues who have nice cushy jobs of power and prestige. Oh wait... Mr. Donohue debunked all that already. He knows better than most of us. Look at his position. It's way up there. He's basically stated that unlimited immigration is valuable and that it won't suppress the American lifestyle. I think he doesn't have a clue. Americans must lower their expectations because they will be competing in a world where wages and benefits are nightmarishly low. Essentially, Mr. Donohue has told most of us that we can go to... the dumpster. He must think we're just so much trash.

POSTED BY: Fred (October 20, 2007 12:32 PM)
It is amazing how individuals try to categorize illegal immigration as an "anti-immigrant"; it is ONLY anti-illegal immigrant! As a legal immigrant into this country, I find it very offensive and unfair that an individual is able to enter the country, hide out for a couple of years, then become legal overnight. I had to wait for years, pay fees, and form long lines for the priveledge of entering this country, they can do the same. I also came to the US due to economic reasons, it is still possible to do things right: apply, pay, wait, enter, assimilate.

POSTED BY: Andy (October 24, 2007 04:45 PM)
Donohue has a good proposal...and finally, who do you think will keep Social Security going for the next generation of Americans...the working stiffs. Otherwise, corporations will continue to move offshore and America will be begging companies to come back, but it will be too late.

POSTED BY: Sean (February 03, 2008 05:31 PM)
Civil Society Helps helps perpetuate fraud against U.S. citizens. The courts in Minnesota are ill equipped and uninformed about the immigration fraud these kinds of groups promote. With false accusations from an immigrant residency seeker and the help of VAWA laws, a stable American citizen can be reduced to living in poverty. All of your assets can be seized and given to the immigrant residency seeker even if you are not found guilty. You will immediately be forced to surrender a portion of your income to the immigrant residency seeker. The courts will order you to turn your motor vehicle over to the immigrant residency seeker even if the car is in your name and the residency seeker does not have a drivers license. Your illegal immigrant spouse becomes legal and you become illegal. The court system will abuse you and strip you of your rights while social programs that promote immigration fraud thrive.

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