The question of whether undocumented immigration negatively affects the economy of the United States is a debate among economists, policymakers, and citizens that has been around for many years. However, when President Donald Trump first took office in January of 2017, this debate gained more attention and gained more controversy. Some argue that undocumented immigration drains public resources and harms job opportunities for low-wage American workers, while others believe undocumented immigrants support critical industries and contribute through taxes and labor. By exploring both sides of this debate, we can better understand how undocumented immigration impacts the economy and whether a middle ground exists.
Perspective #1: Arguments Against Undocumented Immigration
One main argument from those who are against undocumented immigration is that it creates a long-term financial burden on American taxpayers. According to a 2013 report from The Heritage Foundation, written by Jason Richwine and Robert Rector, “undocumented immigrants tend to have low education levels and thus earn low wages and pay comparatively little in taxes” (Richwine and Rector). The authors argue that offering legal status to undocumented immigrants would significantly increase public spending, since legalization could make millions of people eligible for welfare programs and other benefits (Richwine and Rector). They “estimate that amnesty to unlawful immigrants will generate a lifetime fiscal deficit (benefits received minus taxes paid) of around $6.3 trillion” (Richwine and Rector). The authors see this as a serious long-term issue, especially when it comes to how legalization could expand access to government services.
Another argument made by those who oppose undocumented immigration is that undocumented immigration hurts job opportunities and wages for American workers. In a 2020 commentary published by The Heritage Foundation, Lora Ries highlights that while programs like DACA may benefit individuals, undocumented immigration ends up hurting native-born workers in the long run. She claims that “illegal immigrants do take jobs away from Americans and … wages are depressed in some industries because illegal immigrants will charge less for their labor” (Ries), especially in industries where low pay is already common. Ries also claims that “the taxes paid by illegal immigrants are far less than their costs to U.S. taxpayers,” listing costs like public education, welfare benefits, and local services like fire and police departments. According to Ries, policies like DACA can send the message that the government tolerates illegal immigration; this can encourage more undocumented immigration and put additional pressure on local economies. Overall, Ries argues that failing to enforce immigration laws hurt both American workers and taxpayers.
Perspective #2: Economic Contributions of Undocumented Immigration
While some argue undocumented immigrants are a burden, others believe undocumented immigration plays a positive role in our economy, especially through taxes. A report published in 2024 from the Institute on Taxation and Economic Policy, written by Carl Davis, Marco Guzman, and Emma Sifre, explains that undocumented immigrants “paid an estimated $11.7 billion in state and local taxes in 2022, including $7.0 billion in sales taxes, $3.6 billion in property taxes, and $1.1 billion in personal income taxes” (Davis et al.). The report notes that these contributions happen whether undocumented immigrants file taxes directly or pay indirectly through rent or everyday purchases (Davis et al.). According to ITEP, “undocumented immigrants nationwide pay on average an estimated 8 percent of their incomes in state and local taxes” (Davis et al.). This tax rate is higher than what the top 1 percent pay in some states (Davis et al.). The authors also explain that legal status would likely boost tax participation and “would increase their state and local tax contributions by an estimated $2.1 billion a year” (Davis et al.). Put simply, ITEP’s findings support the idea that undocumented immigrants are active contributors to public funding, not just people who rely on services.
Another report published in 2024 by the Immigration Research Initiative, written by David Dyssegaard Kallick, gives more evidence supporting the idea that undocumented immigrants are already contributing to the economy in important ways. Like the ITEP report, this report also focuses on state and local tax contributions but adds specific comparisons to native-born residents. According to Kallick, undocumented immigrants pay “an average of 7.2 percent of their income in state and local taxes,” which is close to the 7.4 percent paid by U.S.-born citizens. The report also states that “undocumented immigrants pay $37 billion a year in state and local taxes” (Kallick) and explains that this applies across all 50 states. The author also estimates that if undocumented immigrants were granted legal status, these contributions could grow to $44 billion, which is a $7 billion increase in state and local taxes (Kallick). These points help question the idea that undocumented immigrants take more than they give and show that they contribute in every part of the country’s economy.
Similarities and Differences
Although both sides have different opinions on undocumented immigration, they still share some things in common. All four sources acknowledge that undocumented immigrants have a significant role in the economy of the United States: specifically, through labor and taxes. The Heritage Foundation warns that undocumented immigrants “can create a significant fiscal burden for U.S. taxpayers” (Richwine and Rector). In contrast, the ITEP report points out that undocumented immigrants “paid $11.7 billion in state and local taxes” (Davis et al.) in a single year. Similarly, the IRI report explains that they contribute to the economy by filling essential jobs, specifically in lower-wage industries that Americans don’t usually take (Kallick). Even though both sides view their impacts differently, they both agree that undocumented immigrants are part of the economy, either as a burden or a benefit.
Despite agreeing that undocumented immigrants impact the economy of the United States, both sides have very different views on what that impact looks like. The Heritage Foundation argues that giving legal status to undocumented immigrants would lead to new costs for government programs, especially once they qualify for public services (Richwine and Rector). The authors estimate that this policy change could add “$6.3 trillion to the long-term costs of government” (Richwine and Rector). The Heritage Foundation commentary article focuses more on jobs and wages, claiming that undocumented immigrants compete with American workers in low-paying industries and bring wages down (Ries). On the other hand, The ITEP report portrays undocumented immigrants as active contributors who pay billions in taxes and would contribute even more if they were granted legal status (Davis et al.). The IRI report makes a similar point, David Kallick claims that undocumented workers help local businesses and communities by filling jobs in essential industries and contributing to public funding. In the end, two sides paint very different pictures, one focusing on economic costs, and the other on economic benefits.
Strengths and weaknesses
The Heritage Foundation is a well-known research institution; however, it is an organization that openly takes a strong stance against undocumented immigration, which raises concerns about potential bias. One of the authors, Jason Richwine, has a PhD in public policy, and his academic background helps support the report’s credibility. However, the report’s estimate that granting legal status to undocumented immigrants would cost taxpayers $6.3 trillion over time (Richwine and Rector) offers little explanation to how this number was calculated. This weakens the strength of the claim, especially for readers who expect transparency in economic estimates. The second source, written by Lora Ries, the Director of Heritage’s Border Security and Immigration Center, shares a similar perspective. She argues that undocumented immigration lowers wages and puts pressure on services (Ries); however, Ries mostly relies on broad claims rather than specific data. While both sources highlight important economic concerns, the lack of detailed evidence makes their arguments feel more one-sided than neutral.
Both the Institute on Taxation and Economic Policy (ITEP) and the Immigration Research Initiative (IRI) are well-established organizations that focus on economic policy and immigration. ITEP’s report is written by a team of analysts, including Carl Davis, who is the research director, and his team who have experience with state tax policy. IRI’s report is authored by David Dyssegaard Kallick, a researcher with years of experience studying the economic role of immigrants. This background helps give their argument more credibility. Both reports use clear data to support their arguments, especially when it comes to how much undocumented immigrants contribute to state and local taxes. However, there is a clear difference between the two sources: ITEP estimates the contribution at $11.7 billion, while IRI states it is $37 billion. ITEP also estimates that legalization would increase contributions by 2.1 billion each year, while IRI projects an increase of $7 billion, from $37 billion to $44 billion. This major gap in numbers can raise questions about accuracy across the reports. ITEP explains how their totals were calculated in detail, which strengthens the reliability of their estimates. IRI offers helpful context and cites ITEP as a source, but it does not explain its numbers as clearly. These differences raise questions for readers who are comparing the two. Both sources rely on credibility and evidence to support their claims, but the tone can feel persuasive rather than neutral.
Compromise
While both sides have clear disagreements, they both offer important points on how undocumented immigration affects the economy of the United States. The Heritage Foundation argues that granting legal status would create long-term costs for taxpayers, while the ITEP and IRI reports highlight the billions of dollars undocumented immigrants already contribute through state and local taxes. These opposing views make it clear that immigration affects the economy in more than just one way. In my opinion, after reading through both sides, I believe that undocumented immigrants are part of the country’s workforce and contribute in ways that are often overlooked. That said, I also understand why some people are concerned about policy changes and public resources. A realistic compromise could involve increasing transparency on both the costs and contributions of undocumented immigration; this way the public can base their opinions on accurate data rather than assumptions. It could also mean creating pathways for undocumented immigrants to participate legally in the workforce, ensuring they contribute to taxes openly while also protecting job opportunities for American workers. This balanced approach acknowledges the real economic benefits undocumented immigrants bring while also addressing the reasonable concerns about the pressure on public resources.
Works Cited
Davis, Carl, et
al. Tax Payments by Undocumented Immigrants. Institute on Taxation and
Economic Policy, 30 July 2024, www.itep.org/undocumented-immigrants-taxes-2024/#_edn3.
Accessed 24 July 2025.
Kallick Dyssegaard,
David. People Who Are Undocumented: Occupations, Taxes Paid, and Long-Term
Economic Benefits. Immigration Research Initiative, 29 July 2024, www.immresearch.org/publications/people-who-are-undocumented-occupations-taxes-paid-and-long-term-economic-benefits/.
Accessed 30 July 2025
Richwine, Jason,
and Robert Rector. The Fiscal Cost of Unlawful Immigrants and Amnesty to the
U.S. Taxpayer. The Heritage Foundation, 6 May 2013, www.heritage.org/immigration/report/the-fiscal-cost-unlawful-immigrants-and-amnesty-the-us-taxpayer#.
Accessed 24 July 2025.
Ries, Lora. DACA
May Help “Dreamers,” but Illegal Immigration Hurts U.S. Workers, Taxpayers, and
Wages. The Heritage Foundation, 14 Oct. 2020, www.heritage.org/border-security/commentary/daca-may-help-dreamers-illegal-immigration-hurts-us-workers-taxpayers.
Accessed 30 July 2025.
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