Easing Immigration Laws Will Boost Tax Revenue
September 5, 2014 Taxation in USA
WASHINGTON D.C. – Allowing undocumented migrants to work in the USA may help raise nearly USD 45 billion in new tax revenues.
Tax revenues in the USA could be increased significantly if the government eased its stance on allowing previously undocumented migrants to work legally in the country, according to new information in a report issued by the independent US based think-tank Center for American Progress.
Currently, it has been proposed that undocumented migrants who are living in the USA may be granted a reprieve from deportation and should be allowed to work legally in the country, if they meet a set of predetermined criteria, a move labelled as deferred action.
The results of the study show that tax revenues in the USA could be increased by as much as USD 44.96 billion over the next five years, if deferred action was applied to individuals living in the country for at last 5 years, while USD 33.44 billion could be raised in the same time frame if the criteria for deferred action was narrowed only to migrants who have been in the USA for 10 years.
It was also found that the deferred action proposal could results in the collection of an extra USD 21.24 billion in tax revenues, if the criteria were applied only to individuals who have a minor child who was born on US soil.