We specify a simple welfare-state system which levies a proportional labor income tax at the
rate T with the revenues redistributed equally to all residents (native-born and migrants alike)
as a social benefit, b, per capita. This benefit captures not only a cash transfer, but may also
capture outlays on public services such as education, health, and other provisions, that benefit
all workers, regardless of their contribution to the finances of the system. Note that this benefit
is accorded to all, native-born and migrants alike. This is plausible, as there is a public and
political support both in Europe and in the U.S. to grant key components of the social benefits
(such as public education) to migrants too. In the U.S. it may also be unconstitutional to exclude
migrants from social assistance programs.