April 9, 2006
CBO Analysis of Sustainable Solvency First for Social Security Act, S. 2427
The Congressional Budget Office has released Long-Term Analysis of S. 2427, the Sustainable Solvency First for Social Security Act of 2006.
Credit Implications for the States and Municipalities Most Affected by Undocumented Immigration
In a "Credit FAQ," Standard & Poors reports that
[It] has yet to see a direct effect on states' and localities' credit quality as a result of undocumented immigration costs. The impact is difficult to evaluate because no clear correlation exists between the two. Many localities that attract high numbers of undocumented immigrants, such as California, Texas, Florida, and New York, also enjoy relatively low unemployment rates, healthy income growth, and increasing property values, all of which contribute to stable financial performance.
A more complete analysis must also consider these workers' contributions beyond payroll and income taxes. Undocumented immigrants are consumers who contribute to both the economy's overall growth with their purchases and to state and local sales taxes. Many undocumented immigrants also pay real estate taxes, either directly as homeowners or indirectly as renters. Those taxes are a prime source of funding for state and local governments.
Read more about it In Credit FAQ: A Clearer Accounting Of Illegal Immigration Costs Is Needed
Ron Jones, University of Cincinnati College of Law