High-Skilled Immigration Reform Could Generate $1.1 Trillion in Tax Revenue, New Report Finds

Washington D.C. – A new report, "Exceptional by Design: How to Fix High-Skilled Immigration to Maximize American Interests," co-authored by Adam Ozimek and Connor O'Brien of the Economic Innovation Group (EIG), outlines a comprehensive plan for overhauling the U.S. high-skilled immigration system. Released in January 2025, the report argues that significant reforms could yield substantial economic benefits, including an estimated $1.1 trillion in net federal revenue over a decade.

The report posits that high-skilled immigration is a powerful, underutilized tool for boosting the American economy, fostering innovation, and strengthening national competitiveness. It highlights how the current system is "falling short," being too small, failing to prioritize top talent, and hindering entrepreneurship. The authors contend that the focus should shift from merely advocating for more high-skilled immigration to detailing "HOW to do that," as Adam Ozimek stated in a recent social media post.

A central finding of the EIG analysis is the significant fiscal impact of high-skilled immigrants. By conservatively estimating the direct tax contributions of these workers, the report projects that adding 500,000 high-skilled immigrant visas annually could generate $1.1 trillion in taxpayer benefits over a 10-year budget window. This figure does not fully account for the indirect economic windfalls from increased innovation and entrepreneurship.

Beyond fiscal gains, the report details how high-skilled immigration drives innovation, entrepreneurship, and growth in strategic industries, while also reducing wage inequality by increasing demand for lower-skilled services. The authors emphasize that immigrants are disproportionately likely to start businesses and contribute to scientific advancements, making them crucial for the nation's long-term prosperity.

To achieve these benefits, "Exceptional by Design" proposes several key reforms. These include replacing the current H-1B visa lottery with a new Skilled Worker Visa prioritizing high-earning and younger applicants, introducing a Heartland Visa to revitalize economically stagnant regions, and establishing a Chipmaker's Visa for critical semiconductor industries. The plan also advocates for family-friendly policies, a modernized Recent Graduate Visa, and an uncapped, self-sponsored EB-X green card for top earners, alongside eliminating per-country caps.

Adam Ozimek underscored the report's significance, stating, "Connor shows this matters & ties it to key lessons from our report." The EIG's research aims to provide a clear roadmap for policymakers, asserting that despite divisions on other immigration issues, there is broad bipartisan support for expanding high-skilled immigration, making it a win-win opportunity for the United States.