Another interesting piece from Jerry Erickson, in News & Messenger, discussing the economic benefits of legalizing an undocumented workforce.
After reading the piece, I’d add that the stabilization of the housing market alone would be a tremendous benefit to the economy. One need only recall the recent Business Week article, where John McClain, a senior fellow at George Mason University’s Center for Regional Analysis, stated that Prince William has witnessed higher foreclosure rates as immigrants moved to neighboring jurisdictions. Nobody should replicate Prince William County’s experience with some of the highest foreclosure rates in the country combined with double digit property losses to a national level. In fact, offering an opportunity at legalization should strengthen the housing sector as those undocumented homeowners with high interest loans could be able to re-finance into lower, more affordable products. Just a thought…
Jerry Erickson
Published: May 20, 2009QUESTION: Can immigration reform provide a boost to the U.S. economy?
Before our country can actually agree to implement any real immigration reform, there has to be a meeting of the minds, or at least a general consensus, that this decision will lead to long-term, worthwhile and measurable economic benefits. Opponents of immigration reform often argue that the costs associated with this effort will outweigh the benefits. A review of the facts suggests that this position is off the mark.
As reported in separate reports by the Immigration Policy Center and the Executive Office of the President, Council of Economic Affairs (EOP), the following are some points to consider:
FACT: Providing legal status to undocumented workers would increase tax revenues.
Department of Labor (DOL) sponsored surveys have concluded that those workers who obtained legal status under the Immigration Reform and Control Act of 1986 (IRCA) experienced, on average, a 15 percent increase in wages within five years. It’s also a given that when your wages increase, you pay more in state and federal taxes. There are also other benefits that flow from legal status, including home ownership, investment in education, job creation and community development.
FACT: Legalizing undocumented workers would improve wages and working conditions for all workers, and increase tax revenues for federal, state, and local governments.
The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) have estimated the Comprehensive Immigration Reform Act of 2006, as proposed in April 2006, would have had the effect of generating $66 billion in revenue between 2007-2016, primarily from payroll and income taxes.
The CBO and the JCT also concluded that the Comprehensive Immigration Reform Act of 2007 would have generated approximately $48 billion in revenue from 2008-2017. Again, this would have primarily resulted from payment of income and payroll taxes.
