The independent Congressional Budget Office estimates the immigration reform bill in the Senate will be good for economic growth.
Yesterday, the CBO released a report that states that passing immigration reform would reduce the federal deficit by $200 billion over the next 10 years and by $700 billion in the decade after that.
The CBO attributes the reduction in deficit to the additional taxes that will be paid by the newly legalized immigrants and new immigrants who will enter the country. Their estimates state that 8 million undocumented immigrants would become legal in the first decade. The CBO noted that the bill could actually reduce the number of undocumented immigrants by 25%.
The rise in documented immigrants would increase spending on refundable tax credits, Medicaid and health insurance subsidies, among other spending dealing with enforcement, but at the same time, the tax revenue would be much more significant.
The analysis found that immigration reform would increase the U.S. GDP by 3.3% in 2023 and 5.4% in 2033.
CBO states immigration reform would “lead to slightly higher productivity of both labor and capital because the increase in immigration — particularly of highly skilled immigrants — would tend to generate additional technological advancements, such as new inventions and improvements in production processes.”
The report shows that Americans and new immigrants would be better off with immigration reform. The U.S. economy is still working on improving and the bill could help over time.
Opponents of the bill will likely have to argue against the bill with reasons other than economic ones.
More on Immigration Reform:
- Immigration Reform 2013
- Gang of 8
- Earned Citizenship
- Streamlining Immigration
- Strengthening Border Security
- More Accountability for Employers Hiring Undocumented Immigrants