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Immigration And Immigration

Decent Essays
Immigration has a negative effect on government budget. There are two types of public goods, pure and congestible. If the public goods are “pure”, or nonrivalrous and nonexcludable, nonrivalrous means the good may be consumed by one consumer without preventing simultaneous consumption by others, then more taxpayers in the form of immigrants spread out the tax cast without diminishing the quality of the goods. If the public good is “congestible” more immigrants could decrease the quality of goods, promoting the government to spend more tax dollars to maintain quality (2014, np.). Immigrants are unable to shoulder their own burden, so the government and tax payers must shoulder that weight.
Immigration also affect the expenditures and revenues of a government. “Immigrants generate additional tax revenues for the general fund, holding all else constant” (Loveless, 1996, p. 104). Generating revenue increases the amount of money that circulates through the economy. Immigrants also simultaneously according to Loveless increases expenditures as well (1996, p. 113). The relationship to immigration is stronger for expenditures than for revenues, therefore the overall fiscal association is negative. Although immigration negatively affect revenue and expenditures, immigration plays a positive role in productivity, technology, and human capital.
Immigration incites innovation and productivity that results in a constructive catalyst to the economy. Immigrants stimulate both natives and
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