The non-partisan Congressional Budget Office has issued a report that should provide serious ammunition for Democrats and moderate Republicans who are pushing the immigration reform bill. The report concludes that passing S. 774 would raise federal revenue and reduce the deficit pretty significantly.
CBO and the staff of the Joint Committee on Taxation (JCT) estimate that enacting S. 744 would generate changes in direct spending and revenues that would decrease federal budget deficits by $197 billion over the 2014–2023 period (see Table 1 on page 12). CBO also estimates that implementing the legislation would result in net discretionary costs of $22 billion over the 2014–2023 period, assuming appropriation of the amounts authorized or otherwise needed to implement the legislation. Combining those figures would lead to a net savings of about $175 billion over the 2014–2023 period from enacting S. 744.
The biggest reason: $459 billion in additional federal revenue during that time period that would result from moving immigrants from the underground, non-tax paying economy to the legitimate economy. And projecting further out looks even better, with estimates that it would reduce the deficit by $700 billion between 2023 and 2033. So it doesn’t just make political sense, it makes economic sense too.