Taxpayers Stung: The Hidden Cost of Undocumented Immigrants Revealed

Millions of undocumented individuals residing in the United States create a mix of economic challenges and benefits. While some point to increased costs for public services, particularly in healthcare and education, these individuals also contribute significantly to the economy through home purchases, business operations, and essential labor in agriculture and construction.

A report from the Institute on Taxation and Economic Policy found that undocumented immigrants paid approximately $97 billion in taxes across federal, state, and local levels in 2022, averaging nearly $9,000 per person. This includes contributions of $25.7 billion to Social Security, despite the fact that most will never receive benefits from the program.

Tara Watson, director at the Brookings Institution, stated that evidence indicates a positive impact from immigration. While it is true that newly arrived low-educated immigrants can strain local resources initially, they often have a net positive impact at the federal level.

In contrast, conservative analysts like Steven Camarota argue that undocumented immigration results in a “net fiscal drain,” particularly when considering the associated costs of education and healthcare. Nonetheless, studies show that the crime rate among undocumented immigrants is lower than that of native-born Americans, contradicting the portrayal of immigrants as societal threats.

There are an estimated 11 million undocumented immigrants in the U.S., with 8.3 million actively employed. These workers contribute to Social Security through payroll taxes, even though they cannot collect retirement benefits. Without this revenue, experts warn that Social Security could face insolvency issues as early as 2035.

Healthcare costs associated with undocumented immigrants highlight another facet of the discussion. While some states offer coverage regardless of legal status, many do not. In 2022, Yuma Regional Medical Center reported $26 million spent on uncompensated care for undocumented individuals. Advocacy groups argue that these costs must be considered alongside the contributions made by immigrants, such as payer taxes.

Undocumented individuals largely do not have access to public assistance programs, yet many American-born children of undocumented parents still qualify for certain benefits. Estimates suggest that nearly 59% of households headed by undocumented immigrants utilize some form of public assistance, translating to a significant financial burden in mixed-status households.

Education is another area affected by undocumented immigration. Approximately 4 million K-12 students were reported to be children of unauthorized immigrants in a 2014 analysis, with a significant share residing in Arizona. These students are eligible for public education under the Plyler v. Doe ruling, yet funding challenges persist.

Lastly, as the workforce demographics shift, immigrants play a crucial role in maintaining labor supply. With 77% of immigrants of working age, their contributions are vital to diverse sectors, including construction and agriculture. Ultimately, while the debate surrounding undocumented immigration is complex, evidence suggests that immigrants contribute significantly to the U.S. economy and societal fabric.