8/10/2019 Economic Benefits of Executive Action for Michigan

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Executive Action on Immigration Will Benefit MichigansEconomy

Everyone agrees that our immigration system is broken and needs reform. While only Congress has thepower to fix the immigration system once and for all, until it acts, there are important steps the presidentcan take that will start fixing our system while also increasing tax revenues, and strengthening oureconomy. Today, there are 100,000 undocumented immigrants living in Michigan. Enabling even aportion of these immigrants to register with the government, request a reprieve from removal, and applyfor a temporary work permit would increase Michiganstax revenues by $49.3 million, over five years,and lead to a cascade of economic benefits.

Expanding deferred action will permit undocumented immigrants to work legally. Temporary workpermits will provide these workers with the ability to secure jobs that match their skill set and enhancetheir productivity. As immigrants get on the books and work legally, their earnings will rise, and so too

will their tax contributions. Executive action on immigration is a step toward fixing our broken system,and for Michigan, it is a step toward a stronger fiscal and economic future.

Fiscal Benefits of Executive Action in Michigan:

- There are35,000 undocumented immigrants in Michigan who are potentially eligible for deferred

action under President Obamas recent executive actions on immigration. If these immigrants are able

to receive a temporary work permit, it would lead to a $49.3 million increase in tax revenuesfor

Michigan, over five years.

Economic Benefits of Executive Action:

-Expanding deferred action will significantly strengthen Michiganseconomy. When undocumentedimmigrants can work legally, they are able to shield themselves against workplace exploitation and

move freely across the labor market to find jobs just like anyone else. Combined, this leads to an

8.5% increase in their earnings.For the average undocumented immigrant that means they are

taking home an additional $1,872 each year. As these extra earnings are spent throughout the

economy, demand for goods and services rises, spurring job creation and raising the wages of all

American workers.

About the Analysis:

Tax benefits were calculated using the average annual income of undocumented immigrants, as estimatedby CAP; effective tax rates for Michigan, ascalculatedby the Institute on Taxation and Economic Policy; andestimated wage increases due to receiving a temporary work permit. The calculated tax benefits reflect the extra

revenue that results from some undocumented immigrants filing taxes for the first time, in addition to the taxes paidby all undocumented immigrants on their increased earnings. The analysis applied state-specific labor force andemployment participation rates for undocumented immigrants asreportedby the Migration Policy Institute. Theanalysis also accounts for the fact that an estimated 38% of undocumented immigrants are already paying incometaxes, nationally. In 2010 3.02 million undocumented immigrants filed income taxes using an Individual TaxIdentification Number, nearly 38% of the 8.0 million undocumented workers. It is assumed that the same share ofimmigrants at the state level are currently filing taxes. The estimated number of undocumented immigrants includesparents of children (who are US citizen or have Legal Permanent Resident status), and those individuals coveredunder DACA expansion. The estimate isntconfined to those parents who have been in the US for longer than 5years.

http://migrationpolicy.org/news/mpi-many-37-million-unauthorized-immigrants-could-get-relief-deportation-under-anticipated-newhttp://migrationpolicy.org/news/mpi-many-37-million-unauthorized-immigrants-could-get-relief-deportation-under-anticipated-newhttps://www.americanprogress.org/issues/immigration/report/2014/09/04/96177/administrative-action-on-immigration-reform/http://www.itep.org/whopays/http://www.migrationpolicy.org/programs/us-immigration-policy-program-data-hub/unauthorized-immigrant-population-profileshttp://www.migrationpolicy.org/programs/us-immigration-policy-program-data-hub/unauthorized-immigrant-population-profileshttp://www.itep.org/whopays/https://www.americanprogress.org/issues/immigration/report/2014/09/04/96177/administrative-action-on-immigration-reform/http://migrationpolicy.org/news/mpi-many-37-million-unauthorized-immigrants-could-get-relief-deportation-under-anticipated-new