Restricting Immigration Will Hike Taxes

August 4, 2014 Taxation in UK

LONDON – Migrants provide an economic boost to the UK, and reducing the number of immigrants allowed into the country will ultimately result in tax hikes for all UK taxpayers.

On August 4th the UK based think-tank National Institute of Economic and Social Research (NIESR) issued a new statement with the results of new research into the economic impact of migrants on the country, showing that clamping down on immigration into the UK would be detrimental to the economy, and could result in a hike to personal taxes.

The NIESR’s analysis is based on the current proposal from the Conservative Party to reduce the number of migrants into the country from “hundreds of thousands to tens of thousands”, a move which would necessitate a 50 percent reduction in the number of migrants arriving in the UK.

If the migration was reduced in line with the proposal, within 26 years, by 2060, the national GDP would fall by 11 percent, while the GDP per capita would be reduced by 2.7 percent.

The reduction in the economic output of the country would have a significant negative impact on the fiscal position of the government, which would be forced to raise personal income taxes by an average of 2.2 percent in order to collect the tax revenues necessary to simply maintain the current levels of expenditure.

Photo By: oatsy40

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