Wednesday, March 10, 2010

Passage of the DREAM Act on the Economy

The DREAM Act can substantially benefit the U.S. economy by generating new tax revenues. In 1999, a study showed that an immigrant woman with only a high school diploma would contribute $42,000 more in taxes and $53,000 if she graduated from college; she would also reduce $3,900 in government expenses for criminal justice or welfare. This is exactly what the current economy needs: highly educated youth. The gains from increased levels of education would result in an additional $8.6 billion in income. Furthermore, higher earnings for newly legalized workers would increase tax revenues of $4.5-$5.4 billion in the first 3 years, as well as increasing consumer spending—enough to support 750,000-900,000 jobs in the U.S. Also, studies have shown that legalized workers open bank accounts, buy homes, and start businesses, which even further stimulate the U.S. economy. The National Immigration Law Center also claims that Social Security revenues will also benefit with $407 billion since more people will be paying taxes. Since more people will be employed, there will be a significant increase in the income of the affected immigrants, and consequently stimulate spending and investment. This economic trend is evident from the results of 1986’s Reagan-era Naturalization Act, which showed to dramatically improve the income.



Citing Resources:
http://www.nilc.org/immlawpolicy/dream/Econ_Bens_DREAM&Stdnt_Adjst_0205.pdf
http://www.immigrationpolicy.org/just-facts/economic-benefits-immigration-reform
http://www.immigrationpolicy.org/just-facts/economic-benefits-immigration-reform
http://www.ehow.com/about_5541185_policy-analysis-dream-act.html
http://www.immigrationpolicy.org/just-facts/immigration-reform-and-job-growth

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