Reforming immigration policy: a libertarian suggestion

A policy of selling the right to immigrate, for say $100,000 per person and for argument's sake, agreeing to accept all those who pay that entry fee (subject to health, criminal and national security checks) would soon see a theme running through the self-selected entrants:

• An end to needless, lengthy and at times, taxpayer funded appeals processes that contest a departmental determination;
• In contrast to unskilled, family reunion migrants, an entry price scheme would reveal the immigrants to be younger since a high entry fee could be justified in the minds of immigrants if they are highly skilled and capable of reaping high wages over a long expected working life; and
• Typically such migrants would be committed, hard working, well informed and socially inclusive. They would invest more in learning English, and be quick to embrace the mores and customs of their new homeland.

Countries that charge a sizeable fee would have an incentive to raise the number of immigrants accepted because they would bring in tax revenue that cuts the tax burden on natives.

For example, Australia allowing say two hundred thousand immigrants per year, each paying $100,000 would contribute $20 billion per year to the government. This would certainly be welcome in the context of the federal budget process.

Fee paying immigrants would most likely make little if any use of welfare or unemployment benefits and would pay hefty taxes on their relatively high earnings. In addition, such migrants whose payments would be transparent would greatly cut down on populist agitation towards migrants.

Immigration tariffs should be made to work in tandem with - and given the concerns of Big Business - not displace the (Australian) employer centric skilled-targeted immigration program.

Simply put, charging a fee to immigrate would help address massive budget deficits by responding to the pressure for new revenue streams that do not hold back economic growth.

Such rivers of new revenues could be used to either lower the tax burden on the native population or to finance spending programs that would otherwise either not be undertaken or be undertaken through borrowings.

The PC is due to hand its report to the Federal Treasurer next autumn.