Below is a concise summary of the proposal with supporting numbers and a discussion of its potential fiscal impact:
---
### The Proposal at a Glance
- **Open Borders with a Bond Requirement:**
Every new immigrant signs an interest‑free bond worth **\$5 million in today’s dollars** when they receive a green card.
- **Long‑Term, Multigenerational Repayment:**
The \$5 million obligation is repaid over **80 years**—shared across the immigrant and their descendants. In an even‑spread scenario, that means:
- **\$5,000,000 ÷ 80 ≈ \$62,500 per year** per immigrant unit.
- **Income‑Contingent Payments:**
To avoid undue burden early on:
- Each year, the payment is set at **double the immigrant’s federal income tax liability**.
- For example, if an immigrant’s annual tax bill is \$30,000, they (or their descendants) would pay about \$60,000 that year—close to the even‑spread figure.
- A minimum payment floor of **\$10,000 per year** is imposed for low‑income years so that even with zero taxable income, there is still a small contribution.
- **Immigrant Inflow:**
The system is designed with an expected **3 million new immigrants per year**.
---
### Fiscal Effects: Numbers and Implications
1. **New Debt Created Annually:**
- Each year’s 3 million immigrants generate a total new obligation of:
**3,000,000 × \$5,000,000 = \$15 trillion** in new bond commitments.
- If repaid evenly over 80 years, the new cohort would, on average, produce revenue of:
**\$15 trillion ÷ 80 ≈ \$187.5 billion per year** from that cohort alone.
2. **Steady-State (Mature Period) Scenario:**
- After 80 years, with every year having a new cohort, there would be up to **80 overlapping cohorts** making annual payments.
- Although an “even‑payment” model would suggest each immigrant unit pays about \$62,500 per year, the payment is adjusted based on income (double the tax liability).
- In a hypothetical mature system where the average payment per immigrant unit is near \$60,000, the aggregate annual revenue would theoretically be:
**80 cohorts × 3 million immigrants × \$60,000 ≈ \$14.4 trillion per year.**
- In practice, the effective revenue would depend on actual incomes and would likely be lower in early years, gradually increasing as immigrants’ earnings grow.
3. **Impact on U.S. Debt and Taxes:**
- **Debt Reduction:**
The large, predictable revenue stream can be earmarked to steadily reduce the national debt. For instance, against a national debt of \$30 trillion, even a fraction of these payments could have a significant long-term impact.
- **Tax Cuts:**
As the debt burden decreases, fiscal flexibility improves. This may enable tax cuts—for example, lowering overall tax rates by 1–2 percentage points (or more) over time—providing relief for American citizens.
- **Spending Balance:**
The collected funds would also help finance public services (e.g., education, healthcare) that immigrants use, ensuring that the costs of open borders are more directly offset by those benefiting from them.
---
### Why Do It?
- **Fair Contribution:**
Immigrants (and ultimately their descendants) contribute to paying for the public services they enjoy, aligning benefits with costs.
- **Fiscal Health:**
A steady, income-dependent revenue stream helps reduce the national debt—potentially freeing up resources for lower taxes and further economic growth.
- **Long-Term Integration:**
A multigenerational repayment plan fosters a deeper, long‑term commitment to the country’s economic and social future.
- **Economic and Social Stability:**
By coupling open borders with a structured financial commitment, the policy targets both expanding the economy (through increased immigration) and mitigating public spending pressures by bringing in a significant, if gradual, revenue stream.
---
### Detailed Breakdown (Recap of Numbers)
- **Bond Value:**
\$5 million per immigrant (fixed in today’s dollars, adjusted only for inflation).
- **Repayment Period:**
**80 years** (shared by the immigrant and three descendant generations).
- **Average Annual Payment (Evenly Spread):**
Approximately **\$62,500** per immigrant per year.
- **Income‑Contingent Payment Target:**
Payment each year equals **2× the federal tax liability** (e.g., if \$30,000 tax, then about \$60,000), with a minimum of **\$10,000** per year.
- **Annual New Obligations:**
**3 million immigrants × \$5 million = \$15 trillion** in new bonds per year.
- **Steady-State (Potential) Revenue:**
With 80 cohorts active, if average payment approaches \$60,000 per immigrant unit, the total annual revenue could theoretically reach up to **\$14.4 trillion per year** (noting that real-world figures would require careful calibration).
---
This proposal is designed to balance the benefits of open borders with the need to maintain fiscal stability—using a long‑term, multigenerational financial instrument that helps reduce national debt and potentially paves the way for future tax cuts.
Below is a concise summary of the proposal with supporting numbers and a discussion of its potential fiscal impact:
---
### The Proposal at a Glance
- **Open Borders with a Bond Requirement:**
Every new immigrant signs an interest‑free bond worth **\$5 million in today’s dollars** when they receive a green card.
- **Long‑Term, Multigenerational Repayment:**
The \$5 million obligation is repaid over **80 years**—shared across the immigrant and their descendants. In an even‑spread scenario, that means:
- **\$5,000,000 ÷ 80 ≈ \$62,500 per year** per immigrant unit.
- **Income‑Contingent Payments:**
To avoid undue burden early on:
- Each year, the payment is set at **double the immigrant’s federal income tax liability**.
- For example, if an immigrant’s annual tax bill is \$30,000, they (or their descendants) would pay about \$60,000 that year—close to the even‑spread figure.
- A minimum payment floor of **\$10,000 per year** is imposed for low‑income years so that even with zero taxable income, there is still a small contribution.
- **Immigrant Inflow:**
The system is designed with an expected **3 million new immigrants per year**.
---
### Fiscal Effects: Numbers and Implications
1. **New Debt Created Annually:**
- Each year’s 3 million immigrants generate a total new obligation of:
**3,000,000 × \$5,000,000 = \$15 trillion** in new bond commitments.
- If repaid evenly over 80 years, the new cohort would, on average, produce revenue of:
**\$15 trillion ÷ 80 ≈ \$187.5 billion per year** from that cohort alone.
2. **Steady-State (Mature Period) Scenario:**
- After 80 years, with every year having a new cohort, there would be up to **80 overlapping cohorts** making annual payments.
- Although an “even‑payment” model would suggest each immigrant unit pays about \$62,500 per year, the payment is adjusted based on income (double the tax liability).
- In a hypothetical mature system where the average payment per immigrant unit is near \$60,000, the aggregate annual revenue would theoretically be:
**80 cohorts × 3 million immigrants × \$60,000 ≈ \$14.4 trillion per year.**
- In practice, the effective revenue would depend on actual incomes and would likely be lower in early years, gradually increasing as immigrants’ earnings grow.
3. **Impact on U.S. Debt and Taxes:**
- **Debt Reduction:**
The large, predictable revenue stream can be earmarked to steadily reduce the national debt. For instance, against a national debt of \$30 trillion, even a fraction of these payments could have a significant long-term impact.
- **Tax Cuts:**
As the debt burden decreases, fiscal flexibility improves. This may enable tax cuts—for example, lowering overall tax rates by 1–2 percentage points (or more) over time—providing relief for American citizens.
- **Spending Balance:**
The collected funds would also help finance public services (e.g., education, healthcare) that immigrants use, ensuring that the costs of open borders are more directly offset by those benefiting from them.
---
### Why Do It?
- **Fair Contribution:**
Immigrants (and ultimately their descendants) contribute to paying for the public services they enjoy, aligning benefits with costs.
- **Fiscal Health:**
A steady, income-dependent revenue stream helps reduce the national debt—potentially freeing up resources for lower taxes and further economic growth.
- **Long-Term Integration:**
A multigenerational repayment plan fosters a deeper, long‑term commitment to the country’s economic and social future.
- **Economic and Social Stability:**
By coupling open borders with a structured financial commitment, the policy targets both expanding the economy (through increased immigration) and mitigating public spending pressures by bringing in a significant, if gradual, revenue stream.
---
### Detailed Breakdown (Recap of Numbers)
- **Bond Value:**
\$5 million per immigrant (fixed in today’s dollars, adjusted only for inflation).
- **Repayment Period:**
**80 years** (shared by the immigrant and three descendant generations).
- **Average Annual Payment (Evenly Spread):**
Approximately **\$62,500** per immigrant per year.
- **Income‑Contingent Payment Target:**
Payment each year equals **2× the federal tax liability** (e.g., if \$30,000 tax, then about \$60,000), with a minimum of **\$10,000** per year.
- **Annual New Obligations:**
**3 million immigrants × \$5 million = \$15 trillion** in new bonds per year.
- **Steady-State (Potential) Revenue:**
With 80 cohorts active, if average payment approaches \$60,000 per immigrant unit, the total annual revenue could theoretically reach up to **\$14.4 trillion per year** (noting that real-world figures would require careful calibration).
---
This proposal is designed to balance the benefits of open borders with the need to maintain fiscal stability—using a long‑term, multigenerational financial instrument that helps reduce national debt and potentially paves the way for future tax cuts.