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Experts from Left and Right Agree on Economic Power of Immigration Reform

Posted on by Ruby Powers in Immigration Trends, Legislative Reform Leave a comment

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In recent years, study after study has demonstrated a simple yet economically powerful truth about broad-based immigration reform: workers with legal status earn more than workers who are unauthorized—and these extra earnings generate more tax revenue, as well as more consumer spending, which creates more jobs. As a new report from the Center for American Progress (CAP) points out, this fact implies that states with appreciable unauthorized populations stand to gain economically from immigration reform that includes a legalization program for the unauthorized. Moreover, a new open letter to Congressional leaders released by the conservative American Action Forum illustrates that it is not only liberal advocacy groups like CAP which recognize the economic potential of immigration reform.

The CAP study begins by quantifying the immense economic gains to the nation as a whole that would flow from a new legalization program:

“If the 11.1 million undocumented immigrants currently living in the United States were provided legal status, then the 10-year cumulative increase in the gross domestic product, or GDP, of the United States would be $832 billion. Similarly, the cumulative increase in the personal income of all Americans over 10 years would be $470 billion. On average over 10 years, immigration reform would create 121,000 new jobs each year. Undocumented immigrants would also benefit and contribute more to the U.S. economy. Over the 10-year period they would earn $392 billion more and pay an additional $109 billion in taxes—$69 billion to the federal government and $40 billion to state and local governments. After 10 years, when the undocumented immigrants start earning citizenship, they will experience additional increases in their income on the order of 10 percent, which will in turn further boost our economy.”

The study then calculates the economic gains from legalization over the course of 10 years for 24 states where 88 percent of all unauthorized immigrants live. Among these are:

Arizona: Legalization would yield a cumulative increase in Gross State Product (GSP) of $23.1 billion; $1.5 billion in additional taxes paid by formerly unauthorized immigrants; and an average of 3,400 new jobs created annually.

Florida: Legalization would yield a cumulative increase in GSP of $55.3 billion; $3.1 billion in additional taxes paid by formerly unauthorized immigrants; and an average of 8,000 new jobs created annually.

Pennsylvania: Legalization would yield a cumulative increase in GSP of $14.8 billion; $810 million in additional taxes paid by formerly unauthorized immigrants, and an average of 2,100 new jobs created annually.

Virginia: Legalization would yield a cumulative increase in GSP of $16.3 billion; $670 million in additional taxes paid by formerly unauthorized immigrants, and an average of 2,400 new jobs created annually.

The study rightly points out that “the sooner we grant legal status and provide a pathway to citizenship to undocumented immigrants, the sooner all Americans will be able to reap these benefits.”

Lest pro-reform views be portrayed as the exclusive domain of political liberals, the May 23 American Action Forum letter to Congressional leaders was signed by 111 conservative economists, including  American Action Forum President Douglas Holtz-Eakin, a former Director of the Congressional Budget Office; Arthur B. Laffer, former Chief Economist at the Office of Management and Budget; and R. Glenn Hubbard and Edward Lazear, former Chairmen of the White House Council of Economic Advisers. The letter acknowledges that “immigration reform’s positive impact on population growth, labor force growth, housing and other markets will lead to more rapid economic growth. This, in turn, translates into a positive impact on the federal budget.” Therefore, the signatories urge Congressional leaders “to pass a broad-based immigration reform bill that includes a U.S. visa system more attuned to economic policy objectives. We believe a reformed and efficient immigration system can promote economic growth and ease the challenge of reforming unsustainable federal health and retirement programs.”

Both the CAP report and the American Action Forum letter are signs that numerous experts from across the political spectrum recognize the economic power and potential of immigration reform. Done right, immigration reform legislation could serve as a significant stimulus for the U.S. economy. The dysfunctional status quo, on the other hand, serves no one’s best interests.

http://immigrationimpact.com/2013/05/24/experts-from-left-and-right-agree-on-economic-power-of-immigration-reform/


Four key points on why business and labor reached a deal on immigration

Posted on by Ruby Powers in Immigration Law, Legislative Reform Leave a comment

by Sandra Lilley, @sandralilley
2:56 pm on 04/01/2013
The recent agreement between labor and business groups on a guest worker program for low-skilled labor has really carved a space for the Senate to proceed with an immigration reform bill, mainly because it did what no other talks succeeded in doing in years past.
“The agreement is huge,” says Ana Avendaño, Assistant to the President and Director of Immigration and Community Action for the AFL-CIO, the nation’s largest union, which recently reached the agreement with the U.S. Chamber of Commerce. “The momentum is unstoppable; and we have no doubt we are going to have an immigration bill,” adds Avendaño.
Here are four reasons why.
Agreement on visa number increase
“First, what is significant is the way both groups have reached an agreement on how to structure the number of visas,” says Kristian Ramos, Policy Director for the New Policy Institute’s (NPI) 21st Border Initiative. ”In 2007, one of the reasons legislation died is that business had one number and labor had another,” Ramos explained, adding, “the fact they were able to come to terms on numbers was pragmatic, clever and an indication these guys are serious.”
Under the deal proposed by the groups, a “W Visa program” could go into effect on April of 2015, and it would allow employers to petition for lesser-skilled foreign workers for jobs in construction, as well as janitorial or retail services. The program would start at 20,000 visas, then go up to 35,000 the next year, 55,000 the next, 75,000 the following and continue until 200,000.
Independent Bureau to determine immigrant labor needs
A second reason labor and business agreed to this, says AFL-CIO’s Avendaño, is because determining what sector of industry needs additional workers will be determined by a new entity, the Bureau of Immigration and Labor Market Research. This is an independent, non-partisan group of experts, such as demographers and economists, who will study and determine labor needs. ”Congress on the House side is currently responsible for setting the number of visas, and the cap hasn’t changed in more than a decade,” says Ramos.
“Right now we don’t even know who is here on work visas or when people leave,” adds Avendaño. ”This will bring transparency, and it will be scientific – there is a shortage of elder care workers, you address it, same with nannies or other positions,” she adds.
Guest worker visa not limited to one employer
For workers themselves, the third reason is one of the most important. Unlike now, immigrants under this proposed guest worker visa will not be limited to one employer. “This is a huge change; as long as employers held the power, it was impossible for workers to exercise their rights to fair pay or expose worker violations,” says Avendaño. “Portability is a big deal for labor,” adds Ramos. In addition, guest worker wages must be equal to those of U.S. workers, so this will not undercut the wages of current employees.
Workers request own green cards
And last but certainly not least, a fourth component on this deal is that workers will be able to self-petition for a green card after one year, and will not be dependent on employers. ”The creation of an entire new visa system is a significant undertaking,” says Ramos.
For immigration reform advocates such as Frank Sharry, Executive Director of America’s Voice Education Fund, this agreement between labor and business is “a historic breakthrough.”
“This breakthrough significantly increases the likelihood of reform with a new roadmap to citizenship for 11 million immigrants,” said Sharry.


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