Immigrants Delivered $14.5 Trillion Surplus to US Economy Over Last 30 Years: Report
Original article by Jon Queally republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
A groundbreaking new report released Tuesday details how immigrants in the United States over the last three decades have contributed a massive surplus to the nation’s economy, resulting in a total of more than $14 trillion over that period due to the fact that immigrant families generate significantly more benefits to fiscal health than they take away in the form of benefits received or downside costs.
The white paper by the libertarian free-marketeers at the Cato Institute, not a left-leaning outfit, builds on an existing model developed by the National Academies of Sciences, Engineering, and Medicine (NASEM) to create a first-of-its kind analyses to determine “how immigrants, both legal and illegal, and their children affect government budgets” in a cumulative manner.
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Looking at 30 years of data, the 95-page report—titled “Immigrants’ Recent Effects on Government Budgets: 1994-2023”—discovered that immigrants overall “generated a fiscal surplus of about $14.5 trillion” over those years. In part, the NASEM-Cato model shows:
- Every year from 1994 to 2023, immigrants have paid more in taxes than they received in benefits.
- Immigrants generated nearly $10.6 trillion more in federal, state, and local taxes than they induced in total government spending.
- Accounting for savings on interest payments on the national debt, immigrants saved $14.5 trillion in debt over this 30-year period.
- Immigrants cut US budget deficits by about a third from 1994 to 2023, and fiscal savings grew to $878 billion in 2023.
The paper concludes that “the average immigrant is much less costly than the average US-born American, and that immigrants impose lower costs per person on old-age benefit, education, and public safety programs.”
The findings arrive with the US embroiled in a heated debate about immigration enforcement as President Donald Trump—backed by far-right xenophobes in his inner orbit, including White House deputy chief of staff for policy Stephen Miller and Department of Homeland Security Kristi Noem—has unleashed violent federal agents into communities nationwide to sweep up undocumented workers and their family members.
In a video produced for social media, David J. Bier, director of Immigration Studies at Cato and one of the report’s co-authors, said the analysis shows in detail why it’s a lie to believe that immigrants are “sucking us dry,” a familiar argument by anti-immigrant “nativists” like Miller.
In summary, the report notes that immigrants produce a net fiscal benefit in the US economy because:
- The United States collected more in taxes from the average person than it spent on benefits (excluding pure public goods).
- Immigrants paid higher-than-average taxes because their higher-than-average employment rate led to higher-than-average incomes.
- Immigrants cost the government less than average because they did not add to the cost of the government’s largest expenditure (pure public goods) and received lower-than-average benefits for other major items, particularly old-age benefits and education.
As shown in the figure below, the difference between taxes paid by immigrants and the public benefits they receive “has grown from $158 billion to $572 billion in real terms since 1994.” Just to look at 2023, working immigrants that year paid $1.3 trillion in taxes yet received only $761 billion in benefits.
This trend, despite endless cries from far-right pundits and xenophobic lawmakers that immigrants are a drain on public coffers, has held steady for decades—with no sign of it ending in the future.
“For decades, nativists have sold America this narrative that immigrant welfare is behind our deficits and debt,” said Bier. “This figure shows how absurd that is.”
The report argues that “rather than treating [immigrants—both documented and undocumented] as the cause of America’s fiscal struggles, we should consider immigrants part of the solution.”
Mark D. Levine, comptroller of New York City, was among the public officials pointing to the report as timely evidence that the Trump-Miller-Noem narrative about immigration is built on a foundation of falsehoods.
“MAGA’s claim that immigrants are a drain on government budgets? It’s a lie,” said Levine.
Original article by Jon Queally republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
Photo of six, taken night before action
