Social Security and public services rely on US citizens’ tax payments to stay solvent. Fortunately, the fiscal future for these areas looks positive as an increase in tax receipts is expected from incoming immigrants to Florida and other states in the next 30 years.
Immigrants help support public programs financially
Some believe that immigrants coming to the US is a detriment due to their dependence on public assistance programs. However, a white paper presented by the Cato Institute shows this rhetoric to be false. It indicates that immigrants will be significant tax contributors over the next 30 years, helping to fund several public programs, Social Security and Medicare. When immigrants with less than a high school education are compared to US-born residents with less than a high school education, immigrants earn more and pay more in taxes.
Keeping Medicare solvent
Medicare is an essential program that helps the elderly and disabled pay for shelter and food. Fortunately, it will continue to support the roughly 60 million Americans who rely on it. A recent study shows this solvency is due to immigration. $48.3 billion in taxes from immigrants helped fund Medicare in 2021. However, despite their significant contribution, stats indicate that only about 12 percent of Medicare and Medicaid was used by foreign-born individuals in 2021.
While adding funds to pay for Social Security, Medicare and public programs is highly beneficial, immigration is also an excellent method for adding cultural value to several American communities. People can learn much from each other when immigrants move into their chosen areas.
Without immigration and the tax funds received by these individuals, living in the United States would be challenging for many seniors and disabled individuals. The Cato Institute’s white paper shows how essential it is to have foreigners move to the United States in the next decade and beyond.