Another Plug for Amnesty Misses the Costs

Jena McNeill / January 12, 2010

Ever since President Barack Obama made a campaign promise to move forward with comprehensive immigration reform early in his presidency, there has been a series of studies aimed at making the economic case for another amnesty. The newest, a study by the Center for American Progress (CAP), claims that legalizing the 11 million illegal immigrants inside the United States would increase GDP by at least $1.5 trillion over 10 years.

Touting amnesty as an economic stimulus is weak on several points. First, these studies almost across the board assume that legalized individuals will contribute more than the taxpayer dollars they receive. The Heritage Foundation, however, has found that illegal immigrants take in $32,138 in immediate benefits and services for every $9,686 in taxes they pay out. This scenario is likely to worsen as these individuals become eligible for government benefits only permitted to legal residents of the United States. This is largely because immigrants are disproportionately low-skilled (even the CAP report recognizes this fact), and low-skilled workers draw more heavily on government welfare and income maintenance services than higher skilled workers. (more…)