Monday, May 06, 2013

Rector Study


Earlier this morning, Robert Rector of the Heritage Foundation released his study estimating the cost of the amnesty portion of the Gang of Eight bill to be $6.3 trillion over the next 50 years. Let's make "$6.3 trillion" go viral!
Pro-amnesty supporters and reporters have been attempting to hide the cost of legalizing 11 million illegal aliens since before Rector's study came out. Help us spread the facts and bust the myths.
Key points on Rector's "$6.3 Trillion" Study:
(1) Education level is key factor in determining the $6.3 trillion cost;
(2) 75 percent of illegal aliens have only a high school education or less;
(3) Amnestied aliens will pay $3.1 trillion in taxes over their lifetimes, but will receive $9.4 trillion in government benefits for a net cost of $6.3 trillion;
(4) The Senate bill pushes most of the $6.3 trillion cost outside the 10-year window that the Congressional Budget Office examines (the 10-13 year wait for green cards is an accounting trick to hide the cost of benefits amnestied aliens will be eligible for);
(5) The $6.3 trillion is only the estimated cost for amnestying 11 million. It does not include the cost family members or future legal flows of less-educated workers;
Rector's study used the same methodology as the National Academy of Sciences. He included the expected taxes paid by the amnestied aliens (even estimating taxes paid on lottery tickets) as well as expected benefits received.
Rector concluded: "Over a lifetime, the former unlawful immigrants together would receive $9.4 trillion in government benefits and services and pay $3.1 trillion in taxes. They would generate a lifetime fiscal deficit (total benefits minus total taxes) of $6.3 trillion. (All figures are in constant 2010 dollars.) This should be considered a minimum estimate. It probably understates real future costs because it undercounts the number of unlawful immigrants and dependents who will actually receive amnesty and underestimates significantly the future growth in welfare and medical benefits."

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