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IMMIGRATION POLICY REFORM: AN INCENTIVE-BASED FUTURE FLOW PROGRAM

Last year Congress worked to pass a comprehensive immigration bill, attempting to implement tougher border security, while reforming the current immigration process. When Congress failed to invoke cloture on the measure, many were led to believe that comprehensive immigration reform would not arise again for the remainder of the Bush presidency. Recent legislative initiatives, however, suggest that there may be an opportunity to not only develop, but also pass narrow and innovative immigration reform.

An Incentive-Based Proposal: Deferring an Economic Benefit to Incentivize Behavior

One approach to innovative immigration legislation would be to create an incentive-based future flow program that would encourage foreign employees to return to their home country through the deferral of an economic benefit. Currently, there are two systems used in the United States that could serve as models for such an innovative immigration policy.

One system, commonly known as a "deposit-refund" system, has been applied in a variety of societal contexts. Deposit-refund systems are a combination of an initial payment and then a subsequent refund of that payment to incentivize desired behavior. One example includes beverage container laws (or "bottle bills") that use deposit refunds to incentivize the return of products eligible for recycling. The additional costs of handling returned products are offset by interest earned on deposits and/or unclaimed deposits. The ultimate objective is to discourage illegal or improper behavior.

Much like the deposit-refund concept is the "performance bond" approach, which levies a fee on companies seeking to undertake certain activities. The amounts deposited as a performance bond are refunded once the payer fulfills certain obligations. One example is found in the Surface Mining Control and Reclamation Act (SMCRA), which requires the purchase of performance bonds before requisite permits can be obtained. In addition to providing the necessary economic incentive to conform behavior, performance bonds also affect a company's ability to obtain future permits if regulatory requirements are not met.

The Incentive-Based Approach in the Context of a Future Flow Program

Three components would comprise a deposit-refund or performance bond system in the proposed federal program:

Requiring the deposit of either (i) a portion of the employee's pay, or (ii) the employee portion of Social Security and Medicare taxes, to be placed into an interest-bearing trust,

Establishing conditions upon which the funds kept in trust, including interest, can be reclaimed by the employee, such as the return to his/her country at the expiration of the employee's authorized period of stay, and

Developing penalty provisions for the employee's failure to meet the conditions of the program, such as the forfeiture of the funds kept in trust.

The Mechanics of a Federal Future Flow Program

Under this innovative program:

U.S. employers would undertake traditional recruitment methods, and submit an application to the Department of Labor, demonstrating a labor shortage for their specific industry and/or region in the United States.

Once the Department of Labor certifies a regional/industry labor shortage, the U.S. employer would apply to the U.S. Citizenship and Immigration Services ("USCIS"), on an expedited basis, for approval to recruit up to 100 employees per application.

Upon receiving an approval notice from the USCIS, U.S. employers would recruit for prospective employees in Mexico.

Prospective employees would go to the U.S. Consulate for a background check and, if certified to enter the United States, would receive a multiple entry visa (or employment card) to engage in temporary year-round employment for a period up to five years, renewable for one additional five-year term.

Employees who remain in the United States for the full ten years would have the option of either (i) returning to their home country, or (ii) seeking to adjust status to that of legal permanent resident (through an employer-sponsored green card application).

Since these temporary employees would be arriving in the United States without their families, key components of this legislative proposal would include:

Multiple entry visas, and

A manner to provide Social Security and other benefits to family members remaining in their home country

The availability of deferred Social Security and other benefits to family members and returning employees would constitute the "incentive" for these employees to return home after the five or ten year period has elapsed, since employees seeking to adjust their status to that of permanent resident would forfeit the deposits held in trust.

Addressing Current Undocumented Workers

While the future flow program would address chronic labor shortages, it would not address those undocumented workers currently residing in the United States. One possible solution would be to designate an initial 18-month period wherein employers could transition their own employees to lawful non-immigrant status if Social Security mismatch letters or other factors indicate their employees may not be authorized to work in the United States. Under this concept, employers would have:

An initial 6-month period to undertake recruitment and demonstrate a labor shortage, and

An additional 12-month period during which to seek work visas (or employment cards) on behalf of current employees who lack the proper documentation to work in the United States.

Upon expiration of this initial 18-month period, the future flow program would no longer be available to undocumented workers residing in the United States.

For further information contact MATT.org, Hope Andrade, Executive Director, at 210-270-0300 (Phone), 210-270-0315 (Fax), hope@matt.org (E-mail), or visit our website at http://www.matt.org. MATT (Mexicans & Americans Thinking Together-Foundation, Inc.) is a non-profit organization whose mission is to encourage bicultural Mexicans and Americans to understand, address and solve the major problems of our two nations to the benefit of both people.

Comments

mgab07 14 April, 2008 10:04:15
I think this is clear and realistic - it seems so logical to base a solution on incentives that promote compliance with (new) clearer, practical policies.

yahoolee 15 April, 2008 12:04:12
I do substantially agree with the mechanics of the suggested program. All the way down until we get to providing Social Security to non-Americans. America can't pay for SS now. We certainly will not be able to pay for ourselves and foreign workers and their families. I would be for giving them back the money held in escrow, which means the deposits would have to be substantial enough to make them want to go home or truly prove their desire for a more permanent solution to staying in the USA. Also the employer would have to pay the employees portion of SS even though that employee may never receive SS benefits. If the employee became a permanent resident or US citizen then the money in escrow would go to their SS and Medicare portion.

Where you truly fall short, one more time is in the existing ILLEGAL ALIEN portion of your plan. Illegal acts deserve punishment and not rewards. The current ILLEGAL ALIENS have to go back to their home country. If they don't, there will never be a deterrent to illegally entering our country. NO AMNESTY!!!

ultima 21 April, 2008 09:04:35
The incentive idea has some merit insofar as it would require employers to make a good faith effort to hire American workers before any foreign labor can be recruited. Irrefutable evidence of the employers efforts would be needed. Of course, the employers must offer a living wage at the American standard not that which a foreign worker might be willing to accept.

The preamble for this plan must make it clear that those illegals who are already here and any potential new border violators have no right to be here. They are illegal and must accept that fact. that is the premise on which the plan must be based.

I have suggested some elements of this plan previously -- especially the idea of forcing employers to re-advertise all of their jobs that are currently held by illegals or anyone who fails to pass an E-verification process. The re-advertisements must be handled through local employment offices and all applications must be processed by those offices. Local labor union in concert with the U.S. Department of Labor should determine what is historically the American standard wage rate for the various kinds of jobs as adjusted for inflation.

The main incentive should be a negative one that says if you are here illegally you will be repatriated without delay and if you return you will be jailed for not less than two years and put to work building the border infrastructure. While serving that time the illegal may be recruited by employers and a process begun to enable him to qualify for temporary guest worker status.

As temporary workers, they would not qualify for permanent residency or a pathway to citizenship. Their children born in this country would not be entitled to birthright citizenship.

Temporary workers would be allowed to have deductible individual retirement accounts like citizens' IRAs but the funds would not be available to them until age 59 1/2. When the funds in the IRA are released to the individual, they will be taxed at the minimum rate.

This process and plan would require workers who qualify to return to their homelands with recruitment papers already in hand and then return to the U.S. as documented temporary guest workers.

ultima 21 April, 2008 09:04:12
The time period offered by this plan for current illegals to qualify for guest worker status is far too long. The employers should have no more than six months total to demonstrate a labor shortage by making a good faith effort to hire American workers offering a living wage and a hiring preference and presenting irrefutable evidence that their efforts were to no avail.

ultima 21 April, 2008 09:04:44
Part of the qualification process for temporary guest worker status should be a commitment on the part of the foreign worker to learn English or at least participate in the equivalent of two semesters of regular English language courses offered at no cost by the local communities.

They should also agree to refrain from any immigration demonstrations or display of foreign flags while in the U.S. in guest worker status.

ultima 21 April, 2008 09:04:40
Repatriated workers should be replaced on a one for one basis by legal immigrants who have followed the rules and are already in the queue.

wdog 18 May, 2008 05:05:21
Word games again by MATT. Undocumented means illegal in the United States, by continuing to disregard this fact, MATT shows itellectual dishonesty and disrespect for the laws and people of the United States. MATT is all about the Mexican side, 'let's prosper together' is bullshit as they have nothing that benefits the average legal American.

comanchewarrior 26 May, 2008 09:05:18
If God wanted a North American Spanish Empire,he wouldn't have given those three "Cumanchis" horses in 1680.