Indian immigrants contribute most to the US economy, cutting debt by $1.6M each.
Study ranks Indians, Chinese, and Filipinos as top debt-reducing immigrant groups.
Ending the H-1B visa program could add $4T to national debt in 30 years.
Removing green card limits may shrink economy and raise US debt-to-GDP ratio.
Indian immigrants have been identified as the most beneficial for the American economy, a new study by the Manhattan Institute reveals.
According to the study published by Daniel Di Martino, each Indian immigrant reduces the national debt by more than $1.6 million over 30 years and boosts gross domestic product (GDP) more than any other group. Following the Indians are Chinese immigrants, who are reportedly responsible for lowering the debt by over $800,000 per person. After the Chinese are Filipinos whose number stands at $600,000, the study pointed out. In addition to that, Colombians and Venezuelans also contribute positively reducing the debt by $500,000 and $400,000, respectively.
However, the study also points out that some groups add to the debt. Salvadorans increase it by over $50,000 per person, while Mexicans, the largest immigrant group in the US, add about $10,000 each over 30 years.
The study findings come at a crucial time, when the Trump administration is taking a tougher stance in terms of immigration, including stricter restrictions and a one-time $100,000 fee for H-1B visas meant for skilled workers.
Further, the research also stated the impact of ending the H-1B visa program, which allows US employers to hire up to 85,000 skilled, college-educated immigrants each year for up to six years.
Thereby, ending the program would hurt the economy and increase the national debt. Over 10 years, it could add $185 billion to the debt and reduce economic output by $26 billion. Over 30 years, the debt could rise by $4 trillion and the economy shrink by $55 billion, the study mentioned as reported by Business Standard. Around 120,000 new H-1B visas are issued on an annual basis.
In case of the US population, there would not be much change because these immigrants have low birth rates and often return to their home countries, but the debt-to-GDP ratio would rise by 0.5 per cent in 10 years and 4.8 per cent in 30 years. This restriction would have the largest negative impact of any single immigration policy, mainly because the US would lose the taxes paid by these skilled workers.
For the US budget, the most negative change would be removing the per-country limits on employment-based green cards, as no more than 7 per cent of these green cards can go to immigrants from any single country. Indian immigrants often wait decades to get a green card, while immigrants from other countries can get one in about two years, the study noted.
If the limits were removed, more green cards would go to Indians already in the US but even then new Indian immigrants would wait over 30 years. Immigrants from other countries would face much longer waits, dropping high-skilled immigration overall. This change could increase the national debt by over $1.1 trillion in 30 years, shrink the economy by 0.7 per cent, and raise the debt-to-GDP ratio by 2.4 per cent.
