WASHINGTON — Immigrants are a net boon to the national economy, having paid $162 billion in taxes last year and providing crucial support for the troubled Social Security system, according to a study scheduled for release today.
Sponsored by an immigration advocacy group and a libertarian think tank that supports loose borders, the report synthesizes about 30 recent studies on the fiscal impact of immigration and offers some original research. It says that high levels of immigration result in a massive transfer of wealth to the United States, and that the influx of young workers will help pay retirement benefits to aging baby boomers.
But although the federal government profits from immigration, cities and states with large foreign-born populations--led by Los Angeles and California--suffer, the report says. That is because immigrants get half of their public services at the local level, while 70 cents of every tax dollar goes to Washington.
The report by the Cato Institute think tank and the National Immigration Forum found that the foreign-born pay a disproportionately low amount of taxes: Immigrants make up more than 9% of the population, but accounted for 8.3% of the taxes paid.
But overall, "all of these findings lead to one inescapable conclusion about the fiscal impact of the new immigrants: They do not cost--they pay," economist Stephen Moore wrote in the report, a copy of which was provided to The Times. "The net fiscal impact is positive."
The report is the latest in a series of high-profile attempts at a cost-benefit analysis of immigration, and comes in a highly charged political atmosphere. There is little consensus--one recent study asserted that immigrants pump an extra $10 billion into the economy each year, but another said they are a $12-billion drag on the nation.
"This is junk science," Dan Stein of the Federation for American Immigration Reform said after reading the latest 28-page study. "Its purpose is to mislead policymakers by perpetuating confusion to produce inertia. . . . It's a piece of propaganda."
Frank Sharry of the National Immigration Forum, the study's co-sponsor, contends that the new analysis is "the immigrant opponent's worst nightmare."
"Five years ago, these folks were saying that immigrants hurt the economy, cause unemployment and drain budgets. We now have the strongest economy in the world, the lowest unemployment in a generation--at the same time we have generous levels of immigration," Sharry said. "They've been proven wrong by the facts. If I were them, I'd be upset, too."
In large part, the new report regurgitates findings of other researchers, often juxtaposing them against one another to make a new point. It estimates that the nation's 25 million legal and illegal immigrants each contribute $20,000 to $80,000 more in taxes than they use in services over their lifetimes, and says that families with naturalized citizens pay about $1,500 more annually in federal taxes than native-born families.
Immigrants Are a Boon to Economy, Study Says
now you need to supply the link showing they cost that much this says they pay that much in taxes?