Immigration saves federal budget, destroys state budgets

There are two key reasons why the federal government loves high immigration.

First, immigration expands the economy as measured by GDP (more inputs in people means more outputs in GDP). Therefore, running a high immigration policy allows the government to claim that they are good economic managers, even when per capita GDP growth is negative (as they are now) and individual living standards are falling.

Second, immigration supports the federal budget by expanding the labour force and personal income tax receipts, as well as company tax receipts (via the larger economy).