Fiscal Impact Of Immigration

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Immigration to the US is a polarizing topic and consequently is the subject of political debate regarding immigration laws and enforcement. These debates would appear to stem mainly from views which differ on the impacts of these immigrants to the US economy. Such debates are significant because of the importance of the US economy to global trade. Incidents such as the Great Depression have shown how reliant the rest of the world can be on America.
As such, the aim of this paper is to outline the impacts of immigration on the US economy. These effects will be explored by defining who immigrants are, and presenting their demographics. Finally, the advantages and disadvantages of their impact on the US will be analysed. At the end of the paper, …show more content…

It is unclear exactly the benefits and disadvantages immigrants have on these figures, due to a lack of data from unauthorized immigrants but estimations can be drawn.

Research suggests that there is a negative relationship between the level of education and the fiscal impact of immigrants. In other words, immigrants with a high level of education have a positive impact on the fiscal; difference of tax and public expenditure, while immigrants with a low level of education have a negative impact (Caramota, 2013). This is because higher educated immigrants generally earn more, and so doing pay more tax according to the progressive tax system. They also depend less on public services such as welfare and unemployment benefits. Lower educated immigrants, on the other hand, depend more on public expenditure, while contributing less to tax revenue due to their lower average income.
As such, it would be one-sided to conclude that immigrants are exclusively either beneficial or detrimental to public …show more content…

There are several other aspects of the economy such as market prices, industry and sectors which have not been expanded upon. In addition, the research only accounts for census figures; several immigrants are undocumented, or work in the informal sectors. Nevertheless, a few conclusions may be gleaned from the data. It would appear that while immigrants have noticeable effects on the US GDP, they are not really essential to the system. So being, their collective benefits and disadvantages are perhaps negligible when applied to the general economy. Notwithstanding, ideas regarding the negativity of an immigrant percentage of the labour force seem to be slightly misconstrued. Evidence would show that while there are some disadvantages, they are subject to variables. The general trend would suggest that the impacts of immigrants are mostly positive as they fill gaps in the economy and react to market changes

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