The Congressional Budget Office or CBO, issued an analysis of the Senate bill S. 744 Border Security, Economic Opportunity, and Immigration Modernization Act, saying that immigration reform as suggested in the bill would have a positive impact on the federal budget, and pay for itself .
The CBO estimates that the bill would increase the population of the U.S. by 10.4 million people and increase federal direct spending by $262 billion over the next decade, but revenue would jump by $459 billion because of additional collections of income taxes and payroll taxes due to an increase in the legal work force in the U.S. That means the bill would decrease federal budge deficits by $197 billion over this 10-year period.
Beyond 2023, immigration reform would increase the number of people eligible for federal benefits such as Social Security and Medicare. But CBO expects the additional revenues generated by additional workers in the U.S. would outpace this extra spending. It projects that immigration reform would reduce federal deficits by $700 billion over the 2024-2033 period.
This is good news because it is clear that the arguments against the bill are not economically viable.