Immigration has been a serious problem to the U.S. government for a long time. This is due to the impact immigration creates to all forms of government in the country. Immigration affects the economy of the US at all levels based on the nature of immigrants in terms of level of education and their willingness to work at lower wages. Immigration is said to enlarge the GDP of the country. However, larger economy by itself is not an advantage to Native Americans. Immigrants create extra cost to the government by exacting more pressure on public services create for the locals. However, and the same time, they contribute to the governments revenue at all government levels through taxation. The difference between the costs and revenue is what determine whether their existence brings a positive or a negative effect to the budget of specific government, especially local and state government (Camarota, 2013). This variation is based on the kind of immigrants found in an area such that areas with lower-income, less educated immigrants are likely to experience net financial drain while higher-income, highly educated immigrants experiencing fiscal benefit. Immigrants also introduce job market competition where in most cases immigrants tend to offer their services at a cheaper price. This result to decline in the market prices of various jobs positions, resulting to decline in the government revenue collected from pay as you earn taxes at all levels of governments. Taking locals jobs also increases rate of poverty in a jurisdiction, especially since most employers prefer them to locals due to cheaper labor (Camarota, 2013).
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