Immigration

The President's (Obama) Proposal

As many of you know the Congressional Budget Office has to report on every law or proposal to the US budget. I became a subscriber to their reports a few years back thinking I might get a little background information that wasn't so readily available...

This proposal really chilled me. I have never heard anything more about it... Maybe I don't understand the rationale or the positive intended impact ..

CBO estimates that by 2026, the immigration proposal would make the total number of people residing in the United States 11 million (or about 3 percent) higher than projected under current law (see Figure 2). That increase in the population would expand the labor force and employment, boosting output. At first, as employment increased, less capital would be available per worker, and workers’ average output would therefore be lower for a time. In addition, the new workers would be less skilled, on average, than the labor force under current law. Through the end of the 10-year period covered by this analysis, those factors would make average wages lower than they would be under current law— although that reduction does not necessarily imply that average wages would be lower for people who would be residents under current law. CBO has not analyzed the effects of the President’s immigration proposal on the income of those people. Over time, the increases in the labor force and in employment would boost output in another way: They would raise capital

4. CBO has not estimated the economic effects of all of the President’s proposals. For example, a proposal to give states grants that would expand access to child care for low- and middle-income families could, in principle, lead to increased labor force participation among affected parents. But the Administration has not provided enough detail to allow CBO to estimate the proposal’s effects. In addition, CBO is in the process of estimating the economic effects of the Trans-Pacific Partnership, a trade agreement not yet approved by the Congress, so it has not included those effects in this analysis.

5. An analysis of that legislation conducted by CBO and the staff of the Joint Committee on Taxation is summarized in Congressional Budget Office, letter to the Honorable Patrick J. Leahy providing an estimate for S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act (July 3, 2013), www.cbo.gov/publication/44397. See also Congressional Budget Office, The Economic Impact of S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act (June 2013), www.cbo.gov/publication/44346. CBO A MACROECONOMIC ANALYSIS OF THE PRESIDENT’S 2017 BUDGET

JUNE 2016 ....