Immigration Tax Laws Get a Boost Under the New Immigrants Bill of Obama Administration
Ever since Ronald Reagan initiated the immigration reforms in 1986 covering an estimated 5 million unlawful immigrants the United States has not witnessed any large scale reform initiatives on immigrants as the Obama initiative in 2013.
The Obama initiative which came out as a bipartisan bill on immigration saw the nod of the Senate and is awaiting its destiny at the House of Representatives. In the House of Representatives the Republicans outnumber the Democrats and may see many surprises. There is an effort to give an economic flavor to the new Bill by making it an effort aimed at expanding the base of tax paying population.
Obama’s new bipartisan Migration Reform Bill is seeking to mainstream 11 million immigrants who are illegaly living in the US. The Bill hopes to provide citizenship to them in 13 years under certain conditions. The undocumented migrants have to become proficient in English, pass criminal detection checks, pay fines and back taxes.
Under the lens of immigration tax laws, 11 million immigrants joining the legal workforce will add to more competition but they will expand the tax base.
The tax immigrants after gaining legal status will create jobs as they become productive and earn higher wages. When legal workers earn higher wages and spend money on housing, clothing and food demand for goods and services will shoot up the economy will grow.
Legal wage earners will increase spending tax revenues too will increase. It has been noted that in year 2010, undocumented Latino workers missed out on $2.2 billion in income and the federal government lost $1.4 billion in taxes.
If the Immigration Reform Act of 2006 had been signed into a law there would have been an estimated $65 billion in new revenue to the federal exchequer between 2007 and 2016.