Immigrants pay far more in taxes than they use
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A new 30-year analysis from the Cato Institute says U.S. immigrants pay billions more in taxes than they receive in benefits, and the trend has steadily grown over the decades.
Why it matters: Conservatives often cite consumption of benefits as proof that immigration creates a strain on the economy, but the analysis from the Libertarian-leaning think tank suggests immigrants and their families actually create a net positive for the U.S. economy.
By the numbers: "Immigrants consume 24% fewer welfare benefits per capita than native-born Americans, and noncitizens (including undocumented people) consume 53% less," the Cato analysis says.
- During the 30 years studied, the authors say, "immigrants created a cumulative fiscal surplus of $14.5 trillion in real 2024 US dollars, including $3.9 trillion in savings on interest on the debt."
Zoom in: While the Cato study looked at all immigrants, an Institute for Taxation and Economic Policy report zooms in on just undocumented U.S. residents and found they paid an estimated $96.7 billion in state, local and federal taxes in 2022 — $1.5 billion in Illinois alone.
- A more recent report from the American Immigration Council estimates that in 2023, undocumented immigrants paid $90 billion in taxes.
The other side: Many Illinois conservatives continue to oppose benefits to undocumented residents, pointing to the hundreds of millions spent on the 2022-23 migrant crisis and short-lived state programs to provide health care to undocumented adults.
- The programs ran $547 million over budget in their first three years (2021-23), leading Gov. JB Pritzker to eliminate them for all but the oldest patients last summer.
- "When you think about Illinoisans that are here legally, Illinois citizens, they don't get free health care," state Rep. Travis Weaver (R-Peoria) told WTTW. "I don't think it makes sense to give free health care to people who are here illegally."