A well-managed U.S.-Mexico border is essential not only for millions of border residents in both countries, but for the U.S. economy and federal budget. This brief lays out recommendations to strengthen the institutional scaffolding that could allow for a safer and more prosperous North American continent.
Continued robust economic growth in the U.S. will, among many other things, require policies that encourage rapid technological innovation and increases in productivity, promote investment while reducing debt, and maximize economic efficiency. The authors explain why in this brief.
The authors argue for an identification and tax program that would allow unauthorized residents to receive identification documents and reside and work legally in the United States. In return, they would pay taxes much like any other American.
With growing competition from abroad, the U.S. must reform its fiscal policy to reduce debt, maximize economic efficiency — including minimizing the distortions caused by the tax system — and maintain its areas of competitive advantage.