About a year ago the presence of refugees in Hagerstown, MD came to the public’s attention rather dramatically. A very ill African woman sent a child out on the street of her crime-ridden neighborhood to look for medical help. The child spoke no English and was found knocking on doors, searching for the resettlement agency office. After the police were called, a series of misunderstandings led to an erroneous conclusion that the refugees and others living in the building were ill with a mysterious African disease. The street was closed and a Hazmat team called in. The woman had morning sickness (or so they say). Thus began the questions by citizens about how all this came to be; it seemed almost as if the public had been kept in the dark purposely.
One of the most significant lines of inquiry involved the economic questions. How could our city absorb all these people who were obviously receiving housing subsidies and other forms of welfare? Were the refugees working? And, what sort of jobs could they do since they didn’t speak English? How could they support whole families on not much more than minimum wage?
It turned out that most of our refugees were working at warehouse jobs or local factories. So then we asked, what’s in it for the likes of Sealy Mattress, one of the employers? One probable answer is a federal tax subsidy for businesses that hire people on TANF (Temporary Assistance for Needy Families) or Food stamps. (Note in my earlier post that half of the refugees are on food stamps, many receive TANF benefits). The Work Opportunity Tax Credit , recently extended by Congress until August 31, 2011, offers a lucrative deal to employers. (Note: We have a better summary of the program from the Congressional Research Service dated June 4, 2007. It was sent to me privately and I cannot find it on line. E-mail us and I’ll tell you where you might get it.)
A qualified employee (welfare recipient) need only work for 400 hours (a 40 hour work week translates to 10 weeks) and the business reaps a tax benefit of up to $2400. If that employee doesn’t work out, get another! The volags (voluntary agencies) act as employment services for businesses and help facilitate refugee hiring.
It makes me wonder if this federal government subsidy is just one of the reasons big businesses like Tyson’s Food are so keen on refugees (in addition to their wish to keep wages low). Afterall, these immigrant workers are here legally and come with benefits of their own.
Check out this post on Louisville, KY. The Wall Street Journal says refugees are good for business.