Immigration boosts federal budget but harms state budgets

There are two primary reasons why the federal government favours high levels of immigration.

First, immigration boosts the economy as measured by GDP. As a result, implementing a high-immigration strategy allows the government to claim it is a competent economic manager, even when per capita GDP growth is negative (as it is currently) and individual living standards are declining.

Second, immigration benefits the federal budget by increasing the labour force, personal income tax receipts, and corporate tax receipts (via a larger economy).