NTU Supports Revenue Neutral Immigration Bill

Dear Senator:

While many of the social policy implications of the immigration reform package currently being discussed by the Senate are outside the purview of NTU's mission, we would like to comment on two immigration-related matters that would affect our nation's fiscal policy. Namely, we are concerned about the potential for a tax amnesty and a significant increase in federal spending.

Some leaders have suggested the inclusion of a tax amnesty provision in the immigration reform bill for illegal aliens' unpaid back taxes. Rightly or wrongly, the annual filing of federal income tax returns is one of the basic duties that all of-age citizens and residents must fulfill. In fact, there are few interactions between Americans and our government more universally shared than filing taxes. While NTU very much wants to see a reduction in the aggregate tax burden imposed by Washington, wiping away tax liabilities for a given segment of society is an affront to all Americans who bear this onerous burden. Bureaucratic ineptitude or overload does not provide current taxpaying businesses and individuals with a free pass. We therefore oppose inclusion of a tax amnesty in any immigration bill.

Many taxpayers are also concerned about the possibility of increased federal spending associated with immigration reform. For example, the Congressional Budget Office and Joint Committee on Taxation have noted that enacting Senate Amendment 1150 to S. 1348, the Comprehensive Immigration Reform Act of 2007, would result in a net spending increase (taking into account direct and discretionary outlays as well as revenue intake) of $18 billion over the 2008-2017 time frame. Net spending would sharply rise after 2018, as individuals affected by this bill become eligible for means-tested welfare programs. The Senate should, at a minimum, aim for budget neutrality in the final immigration bill or offset expected outlays with cuts elsewhere.

Please note that NTU's annual Rating of Congress utilizes every roll call vote affecting fiscal policy, and as such, relevant votes will be included in our Rating.

Sincerely,

Kristina Rasmussen
Director of Government Affairs