The CBO study estimates that the present and future immigration surge will add $1.2 trillion to federal revenue from 2024 to 2034. Income taxes and payroll taxes paid by immigrants account for the majority of that increase, with the boosted economic activity that the new population brings also stimulating the economy and as a result, producing greater tax revenues.
A logical question is whether the benefits and services the Federal government provides to these newcomers cost us more than the $1.2 trillion in revenue? Actually no – while the forecasted amount of costs is $177 billion, which sounds like an enormous number if you see it in isolation – it is dwarfed by the $1.2 trillion in increased revenue. How about the effect of immigrants on the labor market? Aren’t immigrants stealing our jobs? It is true that most of the immigrants entering the country are under 55 and likely to enter the labor force; however, even with the surge we have been experiencing at our southern border in recent years, the current unemployment rate stands at only 4.3%. Big picture: a larger labor force drives production, economic growth, and revenues as those people both produce more goods and services and also consume, driving up GDP as well. In addition, with baby boomers retiring, more workers are needed to keep our economy going. What happens if we suddenly remove our undocumented immigrants from the picture, as mass deportation appears to be the policy of the GOP and Trump? As highlighted in the last edition of The Kicker, such a move would create massive labor shortages in construction, agriculture and food production, vital industries in Georgia. Let’s bring it in for a closer look at our state of Georgia. How does the increase in immigration affect our state economy? Let's first look at the stats: Georgia has a large community of immigrants, nearly half of whom are naturalized citizens. About 10.8% of the state’s residents are foreign-born, immigrants make up 14.3% of Georgia's labor force and support the state’s economy in construction, manufacturing, agriculture, general and professional services. They account for 20.7% of entrepreneurs, and 21.4% of Science, Technology, Engineering and Math (STEM) workers. As millions of baby boomers age, the need for physicians, nurses and health aids has become critical and the immigrant community in Georgia is helping to fill the need, comprising 14.4% of nurses and 17.2% of health aids. Immigrants are an integral part of the entrepreneurial spirit of Georgia. They make up roughly 20% of this community and contribute $3.4 billion in total business income for the state. As a whole, with a total spending power of $38.6 billion, they pay $4.6 billion in state and local taxes, contribute $5.2 billion to social security and $1.4 billion to Medicare. Immigrants ARE NOT a drag on Medicaid Important to note though is that Georgia only provides for emergency care and labor & delivery for undocumented immigrants and non-qualified aliens. The only “qualified aliens” who receive full Medicaid benefits under Georgia law are natural-born citizens (children born to immigrant parents here on U.S. soil) and unaccompanied minors who are under the supervision of the state. As highlighted in the 2nd edition of The Kicker, Georgia is one of ten remaining states that has not expanded Medicaid eligibility – if it had, over 400,000 more Georgians would now be eligible for Medicaid coverage. If Georgia expanded Medicaid to people with incomes up to 138% of the poverty level, the federal government would provide an additional $1.2 billion in funding over two years. As neighbors, business owners, taxpayers, and workers, immigrants are an integral part of Georgia’s diverse and thriving communities and make extensive contributions that benefit all. Comments are closed.
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September 2024
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