Robert Rector’s Study: Open Borders + Welfare State = Disaster

According to Rector, “over a lifetime, the former unlawful immigrants together would receive $9.4 trillion in government benefits and services and pay $3.1 trillion in taxes.” That’s a net cost of $6.3 trillion in combined federal, state, and local benefits. The annual net cost will be roughly $112 billion. The majority of expense will be the result of increased educational and welfare costs.

We’ve noted many times throughout the debate over amnesty that you simply cannot legalize so many low-skilled people without reforming the welfare state. Some people don’t like to hear it, but the reality of today’s redistributive society is that the higher-skilled population transfers a tremendous amount of wealth to the lower-skilled population in the form of the tax code, entitlements, welfare, and social services. Do we really need to import so many new low-skilled illegal and legal immigrants over the next decade to exacerbate the current unsustainable dynamic?

That is the question Heritage’s Robert Rector deals with in his cost study on amnesty today, at least in the case of illegal immigrants. And the answer is a resounding no. Under any amnesty plan, there would indeed be more people paying payroll taxes, but that revenue will never outweigh the cost of benefits they would inevitably receive.

According to Rector, “over a lifetime, the former unlawful immigrants together would receive $9.4 trillion in government benefits and services and pay $3.1 trillion in taxes.” That’s a net cost of $6.3 trillion in combined federal, state, and local benefits. The annual net cost will be roughly $112 billion. The majority of expense will be the result of increased educational and welfare costs.

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