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Immigration Costs Canada BILLIONS : Fraser Institute

qorax

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Immigration Costs Canada BILLIONS : Fraser Institute
Chris Doucette | QMI Agency
Toronto Sun | Tue, May 17, 2011 | 6:00:13 EDT AM



"Newcomers to the country generally make less money and chip in less in taxes than the national average."

And allowing 250,000 immigrants into the country annually is costing us all billions of dollars each and every year, according to a study by the Fraser Institute.

The study, dubbed Immigration and the Canadian Welfare State, sharply criticizes Canada's current immigration system, using earnings and other figures from the 2005-06 fiscal year reported by 844,476 people in the 2006 Census.

It claims the group as a whole earned on average about $10,000 more and paid about $2,500 more in income taxes annually than those within the sampling who had settled in Canada in the previous 18 years.

The study also found immigrants typically pay a little over $6,000 less in property and sales taxes than the national average.

That means the approximately 3.9 million immigrants who settled in Canada between 1987 and 2004 are shortchanging federal government coffers by between $16.3 billion and $23.6 billion annually, depending on how many of those newcomers have moved back home, emigrated elsewhere or died, the study said.

By comparison, the study points out that the loss would more than cover the $13 billion spent by the feds each year on the environment.

The study also dispelled some commonly held beliefs about newcomers.

The idea that the children of immigrants will repay tomorrow the money lost today on their parents can only come to pass if they earn above average salaries, the study said.

"This outcome is unlikely given that the offspring of immigrants in the past eventually take on all of the characteristics of the average Canadian," the study says.

The study also takes on the notion that immigrants are helping the country by taking menial jobs that most Canadians don't want.

"Immigrants do fill jobs that Canadians don't want and thus benefit the economy but, in the absence of immigration, these jobs would pay higher wages and would be filled by Canadians or eliminated by the application of labour-saving technology," the study states.

"Under these conditions, poverty in Canada would be reduced substantially."

As for changes, the study suggests annual immigration numbers should be increased or decreased, depending largely on "market forces."

The study also recommends Canada be more selective, allowing only newcomers who have employment lined up, offering them citizenship only if they hang onto their job for a set number of years and deporting those who lose their jobs.

_____________________________________________________________________________________________________________


Quite a gloomy picture, Eh?
Read the comments there -- & u'd get a glimpse of the mindset of residents!
No wonder there's hush-hush opinions on the street that Immigration is set to be tightened hereon...


Qorax
Source: http://www.torontosun.com/2011/05/17/immigration-costs-canada-billions-fraser-institute

_____________________________________________________________________________________________________________


The Fraser Institute's Report :
Immigration and the Canadian Welfare State - 2011
"To curtail this growing fiscal burden from immigration, the study proposes that temporary work visas be granted to applicants who have a valid offer for employment from employers, in occupations and at pay levels specified by the federal government and determined in cooperation with private-sector employers. Immediate dependents may accompany successful applicants. The temporary visas are renewable and lead to landed immigrant status if certain specified employment criteria are met.

Here's the full report by Fraser Institute:
http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/immigration-and-the-canadian-welfare-state-2011.pdf
 

Sans_May2010

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pittabread

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Dear Qorax!

Thanks for this info but we have seen conflicting reports. Somewhere it says immigration booms economy and somewhere its just opposite. People talk about as migrants bring their life savings to this country so its good for the economy of Canada but others think migrants are burdon. We are not sure what to beleive and what not.

Thanks
 

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Interesting Post Qarax!!!

If people study history than they should know that immigrant were not welcome any time in any place. Consider Polish/Italian/Jews immigration to US during and after WW-2. They had to face hardship which included racism and other bias.
So in my opinion even if citizens do not want immigration, government will have them for economic reasons(maybe less-but it will always be there)

Secondly much of immigration in recent years have been through Asia(India, China, Phillipines) whose lifestyle and culture is much more different than Europeans and yes they don't intigrate much with local culture.

Also most of people have problem with the refugee immigration as lots of people from war torn countries immigrate:their immigration cost is on taxpayers, they don't bring any dollars with them, don't have much skill for work, language problems and most of them live on taxpayers.

A fair report will list all different categories of immigration and their impact on economy(including bussiness, FSW, refugee, family class. etc).

One more thing that needs a mention is that most of Chinese(don't know about Indians) do business the way they do in China(no billing, no taxation, etc). So they will definitely pay less taxes even if they earn more.

Not to mention people are just out of a great recession. No wonder they will be protactive of their jobs. When times are good people will not worry much about it.
 

qorax

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nano24482 said:
Interesting Post Qarax!!!

If people study history than they should know that immigrant were not welcome any time in any place. Consider Polish/Italian/Jews immigration to US during and after WW-2. They had to face hardship which included racism and other bias.
So in my opinion even if citizens do not want immigration, government will have them for economic reasons(maybe less-but it will always be there)

Secondly much of immigration in recent years have been through Asia(India, China, Phillipines) whose lifestyle and culture is much more different than Europeans and yes they don't intigrate much with local culture.

Also most of people have problem with the refugee immigration as lots of people from war torn countries immigrate:their immigration cost is on taxpayers, they don't bring any dollars with them, don't have much skill for work, language problems and most of them live on taxpayers.

A fair report will list all different categories of immigration and their impact on economy(including bussiness, FSW, refugee, family class. etc).

One more thing that needs a mention is that most of Chinese(don't know about Indians) do business the way they do in China(no billing, no taxation, etc). So they will definitely pay less taxes even if they earn more.

Not to mention people are just out of a great recession. No wonder they will be protactive of their jobs. When times are good people will not worry much about it.
Well said.

BTW, pls read the full Fraser Inst. Report - especially:
a) Pages 14-22: Other benefits and Costs of Immigration -beats the notion of current imigr policy being good/wise
b) Pages 23-27: Policy Recommendations -calls for a 'drastic change' in immigr. policy/petterns

This will provide a head-on towards what to expect in the days to come...

@Pittabread
And remember folks, here we r talking about "Fraser Institute", a think-tank, not a/ny propaganda machine; besides the figures of Statscan...

Qorax
_____________________________________________________________________________________________________________

About the Fraser Institute

Our vision is a free and prosperous world where individuals benefit from greater choice, competitive markets, and personal responsibility. Our mission is to measure, study, and communicate the impact of competitive markets and government interventions on the welfare of individuals.

Founded in 1974, we are an independent Canadian research and educational organization with locations throughout North America and international partners in over 70 countries. Our work is financed by tax-deductible contributions from thousands of individuals, organizations, and foundations. In order to protect its independence, the Institute does not accept grants from government or contracts for research.

Nous envisageons un monde libre et prospère, où chaque personne bénéficie d’un plus grand choix, de marchés concurrentiels et de responsabilités individuelles. Notre mission consiste à mesurer, à étudier et à communiquer l’effet des marchés concurrentiels et des interventions gouvernementales sur le bien-être des individus.

Nuestra visión es un mundo libre y próspero donde los individuos se bene- ficien de una mayor oferta, la competencia en los mercados y la respons- abilidad individual. Nuestra misión es medir, estudiar y comunicar el impacto de la competencia en los mercados y la intervención gubernamental en el bienestar de los individuos.
 

pittabread

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qorax said:
Well said.

@ Pittabread
And remember folks, here we r talking about "Fraser Institute", a think-tank, not a/ny propaganda machine; besides the figures of Statscan...
ok qorax :)
 

nano24482

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@ Qarax
Thanks for your feedback. I made the remarks based on your post. Have not read the report.
Will read it in free time.
 

yukon

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Immigration and the Canadian Welfare State - 2011
"To curtail this growing fiscal burden from immigration, the study proposes that temporary work visas be granted to applicants who have a valid offer for employment from employers, in occupations and at pay levels specified by the federal government and determined in cooperation with private-sector employers. Immediate dependents may accompany successful applicants. The temporary visas are renewable and lead to landed immigrant status if certain specified employment criteria are met.


This part sounds interesting for AEO applicants !
 

ADUFE

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nano24482 said:
Interesting Post Qarax!!!

If people study history than they should know that immigrant were not welcome any time in any place. Consider Polish/Italian/Jews immigration to US during and after WW-2. They had to face hardship which included racism and other bias.
So in my opinion even if citizens do not want immigration, government will have them for economic reasons(maybe less-but it will always be there)

Secondly much of immigration in recent years have been through Asia(India, China, Phillipines) whose lifestyle and culture is much more different than Europeans and yes they don't intigrate much with local culture.

Also most of people have problem with the refugee immigration as lots of people from war torn countries immigrate:their immigration cost is on taxpayers, they don't bring any dollars with them, don't have much skill for work, language problems and most of them live on taxpayers.

A fair report will list all different categories of immigration and their impact on economy(including bussiness, FSW, refugee, family class. etc).

One more thing that needs a mention is that most of Chinese(don't know about Indians) do business the way they do in China(no billing, no taxation, etc). So they will definitely pay less taxes even if they earn more.

Not to mention people are just out of a great recession. No wonder they will be protactive of their jobs. When times are good people will not worry much about it.
Wonderful analysis Nano!
 

qorax

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Jason Kenney
Minister - Citizenship, Immigration and Multiculturalism


Why Kenney might consider this report!

[Last year (2010), Canada received 281,000 immigrants - the highest number since 1957. In addition, 182,000 TFWs arrived, with the ones already in country - by the year end there were 283,000 foreign workers in Canada. There were 218,000 foreign students here too - and most of the temporary workers and students will remain permanently. There is also a massive backlog of over 1 million immigrants waiting to enter - who have met all of the entry requirements.]

There is already a strong undercurrent in the street against the country's immigration policies. And with the last 'boat-load', public opinion has taken a strong nose-dive. Nearly everyone now questions the Canadian magnanimity...

Conservatives had always advocated 'containment' of the immigrants influx... did all they could [eg. the 29 list for FSW, reduction in the FC quotas etc.] - but, had to play along with their NDP friends... But now? When the market folks have given them the heads-up, will they thus go all out?

Here is an extract of what someone of authority say:
-------------------------------------------------------------------------------------------------------------------
Immigration isn't as beneficial as politicians claim
By James Bissett | Calgary Herald | May 20, 2011

"Immigration has had a powerful impact on our political system. All of the political parties favour large-scale immigration. Every immigrant is seen by them as a potential voter for their party. The politicians justify high immigration levels by claiming immigration is desperately needed to sustain our economic growth, enhance our labour force and combat our so-called aging problem.

It is significant that of the 281,000 immigrants who arrived in 2010, only 17% [or 48,800] were skilled workers selected for their potential contribution to our labour force. The remainder were spouses and children accompanying them, relatives sponsored by people already in Canada, immigrants sponsored by the provinces, refugees or others accepted for humanitarian reasons -- So much for Helping our Economy or Labour Force!

Studies in Canada since the MacDonald Royal Commission Report of 1985 and the Economic Council of Canada's studies in the early 1990s concluded that immigration was not necessary for economic prosperity. In 2003, Prof. Alan Green of Queen's University released a study that argued that while immigration had been useful in the past, the economic argument for it had largely disappeared and that the current political posture of using immigration to solve economic problems was no longer valid.

In 2008, Prof. Herb Grubel of Simon Fraser University, in a landmark study, showed that the 2.5 million immigrants who had come to Canada from 1990 to 2002 had received in benefits and services in one year (2002) $18.3 billion more than they had paid in taxes. That amount was more than the federal government spent on health care and twice what was spent on defence in fiscal 2000-2001.

Despite all of the evidence to the contrary, our political parties repeatedly advocate raising our immigration levels, and do so, as they did in 2008, regardless of economic down turn. The name of the game is to get more numbers, because numbers are seen as voters.

In fact, the pressure to increase immigration has become such an overwhelming obsession with politicians that our overseas visa officers do not have time to interview prospective immigrants and the vast majority are no longer seen or interviewed.

The assessment of qualifications is done by reviewing documentation and the visas are issued by mail. Is there an employer in Canada who would hire someone without a personal interview? Immigration is a critical public policy issue. The kind of Canada we will be in the future depends on the policies we follow today.

This is wrong. If through mass immigration, the traditional society of a nation is in danger of becoming marginalized, then surely it should be done as a deliberate and open policy objective of government - and not driven by politicians competing desperately for ethnic votes. We must not allow our politicians to use it as a political game that patronizes the immigrants and damages our national interest.

-------------------------------------------------------------------------------------------------------------------

That was James Bissett - and mind u there r others. Jason Kenney remains in this hot-seat [& promoted too] to ensure that the program/s initiated by the Conservatives go further-fold. The CIC website had already expressed what to expect in the near future, post 26/6/10. It'd be thus interesting to see what comes out of 'the plan' around Jul 2011. We should expect some dramatic changes...

Qorax
 

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Qorax, Can you leave a link of the webpage which states the future immigration expectations?

Thanks, Sans_May2010

That was James Bissett - and mind u there r others. Jason Kenney remains in this hot-seat [& promoted too] to ensure that the program/s initiated by the Conservatives go further-fold. The CIC website had already expressed what to expect in the near future, post 26/6/10. It'd be thus interesting to see what comes out of 'the plan' around Jul 2011. We should expect some dramatic changes...

Qorax
[/quote]
 

qorax

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Sans_May2010 said:
Qorax, Can you leave a link of the webpage which states the future immigration expectations?

Thanks, Sans_May2010

That was James Bissett - and mind u there r others. Jason Kenney remains in this hot-seat [& promoted too] to ensure that the program/s initiated by the Conservatives go further-fold. The CIC website had already expressed what to expect in the near future, post 26/6/10. It'd be thus interesting to see what comes out of 'the plan' around Jul 2011. We should expect some dramatic changes...

Qorax
http://www.cic.gc.ca/English/department/media/backgrounders/2011/2011-02-17a.asp
 

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Well said Nano. A cross category per immigrants groups must be also evaluated to provide an objective opinion.

nano24482 said:
Interesting Post Qarax!!!

If people study history than they should know that immigrant were not welcome any time in any place. Consider Polish/Italian/Jews immigration to US during and after WW-2. They had to face hardship which included racism and other bias.
So in my opinion even if citizens do not want immigration, government will have them for economic reasons(maybe less-but it will always be there)

Secondly much of immigration in recent years have been through Asia(India, China, Phillipines) whose lifestyle and culture is much more different than Europeans and yes they don't intigrate much with local culture.

Also most of people have problem with the refugee immigration as lots of people from war torn countries immigrate:their immigration cost is on taxpayers, they don't bring any dollars with them, don't have much skill for work, language problems and most of them live on taxpayers.

A fair report will list all different categories of immigration and their impact on economy(including bussiness, FSW, refugee, family class. etc).

One more thing that needs a mention is that most of Chinese(don't know about Indians) do business the way they do in China(no billing, no taxation, etc). So they will definitely pay less taxes even if they earn more.

Not to mention people are just out of a great recession. No wonder they will be protactive of their jobs. When times are good people will not worry much about it.
 

zulkfal

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During my studies, i have red lots of papers on immigration benefits and costs. Immigration is a political issue rather than economical, some economist strongly belief that its not good and some take opposite side. For example a UC Barkley prof published a paper that immigration hurts secondary labor market and govt money but Kruger (Prof at Princeton) used same data and said that immigration doesn't heart labor market in any way and increase the govt income. It depends on model, data, and the results the researcher want to achieve. Wait for some days or a month or 2 and you will another paper with similar data proving immigration is helpful for country. Canada makes its immigration policy after speaking with number of highly talented labor economist with strong grip on immigration issue. They will not let you immigrate if you are not beneficial and we will not immigrate if we don't have any as well. Simply its a give and take.

All industrialize and service country need immigration these days, why? 2 simple reasons

1) low birth rate (every one know this fact so no point to say some thing)
2) There youngster are less interested in school and if they go for higher education they prefer it to be in non technical side like literature. (this can be discussed)

Pick up any national student statistics then data from universities in Canada, UK, US, AUS and similar countries. you will find majority of students from Asia pacific and south east asia are registered in Degrees related to ENG, MED, BUS, FIN compared to more natives in ENG Lit, History and other similar titles. Number of studies have raised these issues, govt brought policies to help those students who want to study in technical side but no success yet. The skilled immigration help them to fill this gap, but normally not the first generation of immigration the economist look at second generation. The success rate of second generation is 80%+ compared to 40% for first generation. Success is working in Primary market or white color jobs.

I support Kruger as well, but I don't want to stay too long in Canada just some good qualifications, exposure to developed financial market and then leave. In my opinion (you might not agree with this, its solely my observation), its not a great place to plan retirement but it can boost employment opportunities outside Canada with some experience in leading firms and thats what I want on my resume.