Economic impacts of immigrants in the Toronto CMA: A tax-benefit analysis

Abstract

This article examines the economic impacts of immigrants in the Toronto Census Metropolitan Area through an analysis of their income tax contributions and welfare or unemployment benefit receipts in 1995. Our analyses show that despite their lower income, immigrants admitted between 1980 and 1995 who settled in Toronto did not obtain social assistance in excess of the income tax they paid. There is no evidence that these immigrants are an economic drain on Canadian society although internal variations do exist among immigrant groups. Within the limitations of our analyses, the myths that family-class immigrants and refugee immigrants pose a constant threat to the Canadian economy are unfounded.