Immigration Reform and the Fair Tax

Allowing Tax Restructure to Welcome Immigration Reform

This is a repost of a blog I published in January.  I felt it was a good time to repost.

I am a believer in working with what one has at the moment.  We now are on our way to immigration reform.  It appears that many are worried about the cost to the state and federal budgets in regards to healthcare and assistance to these new immigrants.  This could be a win-win situation if the changes were linked to Tax Reform.  Tax reform hopefully will be on an upcoming agenda for change.  It could be an incentive to welcome immigration reform.  The tax could be changed to a consumption tax that exempts essentials such as food and healthcare.  I am not referring to a value added tax or VAT such as exists in Europe which is in addition to the income tax.  I am referring to no income tax and other current taxes but a consumption tax only.  Everyone pays but essentials as mentioned above are exempt.  Those worrying about the cost of immigration reform would no longer have an argument.  The new immigrants would be paying for themselves.  There are several suggested plans circulating for consideration.  One is the Fair Tax (Amadeo, 2011).  I have included the reference below with pros and cons for that particular suggestion. Do review.  There are other formats of consumption taxes besides the Fair Tax. I do feel a consumption tax could solve the budgetary worries of the immigration reform better than a flat tax as some are suggesting for tax reform.  Why not solve two concerns with one movement?  What suggestions or leverage could be waged to tie these together?

 

Amdeo, K. (2011, November 30). Fair Tax. Retrieved January 5, 2015, from http://useconomy.about.com/od/fiscalpolicy/p/Fair_Tax.htm