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The indirect fiscal benefits of low-skilled immigration

The indirect fiscal great things about low-skilled immigration

You will find a widespread perception that low-skilled immigration is a fiscal burden for society. This column incorporates indirect fiscal ramifications of immigration that arise generally equilibrium into various models which were emphasised in the empirical immigration literature. It finds that the indirect fiscal effect is actually positive, with one low-skilled immigrant in america adding between $700 to $2,100 to the general public finances through this channel every year.

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Marriage-related taxes, social security benefits, and women’s labour supply in the us vox, cepr pol

Marriage-related taxes and Social Security benefits are holding back women’s labour supply in america

In america, both taxes and social security benefits depend on one’s marital status and have a tendency to discourage the labour way to obtain the secondary earner. Using information on US cohorts born in 1945 and 1955, this column implies that eliminating marriage-related provisions drastically escalates the participation of married women over their life time cycle and reduces the participation of married men after age 60. If the resulting government surplus were used to lessen income taxation, there will be large welfare gains for almost all the population.