Economic Impact of Immigration
Data-driven analysis of immigrant contributions to the U.S. economy, including tax revenue, GDP growth, entrepreneurship, and generational wealth creation.
Immigration: The Economic Facts
Data from CBO, ITEP, SSA, and BLS
$96.7B
Annual Tax Contributions
ITEP 2024
$1.6T
GDP Contribution
Center for American Progress
$13B/yr
Social Security Contributions
SSA
$1.3T
Consumer Spending Power
New American Economy
$7T
10-Year GDP Growth (CBO)
CBO 2024
$900B
10-Year Deficit Reduction
CBO 2024
Taxes Paid vs Benefits Received (Billions)
Key Facts (Click for Sources)
- ✓Immigrants commit crimes at 60% LOWER ratesSource: Cato Institute
- ✓55% of billion-dollar startups founded by immigrantsSource: NFAP
- ✓Undocumented immigrants CANNOT vote (it's a felony)Source: 8 U.S.C. § 1227
- ✓Ineligible for Social Security, Medicare, SNAP, welfareSource: PRWORA 1996
10-Year Projections
- $7 Trillion added to GDP
- 5.2 Million new workers
- $1 Trillion in new tax revenue
- $900 Billion deficit reduction
Click any statistic above to view the original source
iceaudit.com/economic-impact
Key Finding
$96.7 Billion
Annual tax contributions by undocumented immigrants alone. This includes federal income taxes, payroll taxes, and state/local taxes. Most undocumented workers pay taxes using Individual Taxpayer Identification Numbers (ITINs) or mismatched Social Security numbers.
Source: ITEP 2024 ReportPublic Benefits Usage
Undocumented Immigrant Eligibility
Very Limited
Ineligible for most federal benefits
Emergency Medicaid Only
~$2B/year
Emergency care required by law (EMTALA)
K-12 Public Education
~$60B/year
Constitutional right (Plyler v. Doe)
Net Fiscal Impact
+$34B surplus
Tax contributions exceed benefits used
Economic Contributions by Category
Annual Tax Contributions
$96.7 Billion
Total federal, state, and local taxes paid by undocumented immigrants annually
ITEP 2024Social Security Contributions
$13 Billion/year
Annual contributions to Social Security by undocumented workers, most of whom will never collect benefits
Social Security AdministrationGDP Contribution
$1.6 Trillion
Estimated annual GDP contribution by undocumented immigrants
Center for American ProgressLabor Force Participation
Entrepreneurship Rate
25% Higher
Immigrants are 25% more likely to start a business than native-born Americans
National Bureau of Economic ResearchConsumer Spending Power
Population Growth Drives Economic Growth
Economic growth is fundamentally driven by two factors: population growth and productivity growth. Immigration directly contributes to both, making it one of the most powerful economic engines available.
$7 Trillion
GDP Growth from Immigration
CBO projects immigration will add $7T to GDP over the next decade
Congressional Budget Office 2024
5.2 Million
Labor Force Growth
Net new workers from immigration 2024-2034
CBO
$1 Trillion
Tax Revenue Increase
Additional federal revenue from immigration over 10 years
CBO
$900 Billion
Deficit Reduction
Net deficit reduction from immigration over 10 years
CBO
1More Workers = More Output
Each additional worker produces goods and services, directly increasing GDP. Immigrants fill critical labor shortages in healthcare, agriculture, construction, and technology.
The U.S. is facing a demographic crisis with declining birth rates. Without immigration, the labor force would shrink, causing economic contraction.
2More Consumers = More Demand
Immigrants are also consumers who buy homes, cars, food, and services. This increased demand creates jobs and business opportunities for everyone.
Immigrant households have $1.3 trillion in annual spending power, supporting millions of American jobs.
3More Taxpayers = More Revenue
Working immigrants pay income taxes, payroll taxes, sales taxes, and property taxes. This funds Social Security, Medicare, schools, and infrastructure.
Undocumented immigrants alone pay $96.7 billion in taxes annually, despite being ineligible for most benefits.
4Innovation & Entrepreneurship
Immigrants are 80% more likely to found a company than native-born Americans. Immigrant-founded companies include Google, Tesla, eBay, and hundreds of others.
55% of U.S. billion-dollar startups were founded by immigrants, creating millions of American jobs.
5Solving the Aging Crisis
As baby boomers retire, there aren't enough young workers to support Social Security and Medicare. Immigration provides the young workers needed to sustain these programs.
Without immigration, Social Security would face insolvency sooner. Immigrant workers help keep the system solvent.
What Happens Without Immigration?
Japan's Decline
Japan's restrictive immigration policies combined with low birth rates have led to economic stagnation, labor shortages, and a shrinking economy.
Europe's Challenge
European countries with aging populations and low immigration face pension crises and healthcare worker shortages.
U.S. Advantage
America's openness to immigration has been a key competitive advantage, driving innovation and economic growth for centuries.
Public Benefits: What Undocumented Immigrants Can Access
Contrary to common misconceptions, undocumented immigrants are ineligible for most federal benefit programs. They pay billions in taxes annually but cannot access the programs those taxes fund.
| Program | Eligibility | Annual Cost | Notes |
|---|---|---|---|
| Social Security | Ineligible | $0 | Undocumented immigrants pay $13B/year but cannot collect benefits |
| Medicare | Ineligible | $0 | Pay $6B/year in Medicare taxes but cannot receive benefits |
| Medicaid | Emergency Only | ~$2B/year | EMTALA requires emergency treatment regardless of status |
| SNAP (Food Stamps) | Ineligible | $0 | Federal law prohibits undocumented immigrants from receiving SNAP |
| Housing Assistance | Ineligible | $0 | Cannot receive Section 8 or public housing |
| TANF (Welfare) | Ineligible | $0 | Cannot receive cash assistance |
| Unemployment Insurance | Ineligible | $0 | Pay into system but cannot collect if laid off |
| K-12 Education | Eligible | ~$60B/year | Constitutional right per Plyler v. Doe (1982) |
Taxes Paid Annually
$96.7B
Benefits Received
~$62B
(Primarily education)
Net Contribution
+$34.7B
Addressing 'Replacement Theory' Claims
The 'Great Replacement' conspiracy theory falsely claims there is a deliberate plot to replace white Americans with immigrants. This dangerous misinformation has been linked to mass shootings and hate crimes. Here are the facts that debunk each claim.
✗Claim: "Elites are deliberately importing immigrants to replace white voters"
✓The Facts:
- Immigration policy is set by elected Congress members of both parties, not shadowy elites
- Most immigrants come through family reunification (sponsored by U.S. citizens) or employment
- Refugee admissions are capped by law and require extensive vetting (18-24 months)
- Undocumented immigrants cannot vote in federal elections - it's a felony
- Immigration levels have fluctuated based on economic needs and humanitarian crises, not racial engineering
Sources: Department of Homeland Security, Congressional Research Service
✗Claim: "White people are becoming a minority and will lose power"
✓The Facts:
- Demographic change is driven by birth rates, not immigration - white birth rates have declined due to economic choices, not conspiracy
- Many 'Hispanic' Americans identify as white - census categories are complex
- Political power comes from citizenship and voting, not race - naturalized citizens vote at similar rates
- The Constitution protects all citizens equally regardless of demographic changes
- Throughout history, groups once considered 'non-white' (Irish, Italians, Jews) became 'white' - race categories are social constructs
Sources: U.S. Census Bureau, Pew Research Center
✗Claim: "Immigrants are taking jobs from Americans"
✓The Facts:
- Immigrants and native workers largely fill different roles (complementary, not competitive)
- Unemployment is near historic lows despite high immigration
- Immigrants create jobs - 55% of billion-dollar startups were founded by immigrants
- Industries with high immigrant labor (agriculture, construction, healthcare) face worker shortages, not surpluses
- Economists across the political spectrum agree immigration grows the economy
Sources: Bureau of Labor Statistics, National Bureau of Economic Research
✗Claim: "Immigrants are changing American culture"
✓The Facts:
- America has always been shaped by immigration - this IS American culture
- Previous waves (Germans, Irish, Italians, Chinese, Jews) faced identical fears that proved unfounded
- Second-generation immigrants are among the most patriotic and assimilated Americans
- Immigrant communities have higher rates of religious observance, family values, and work ethic
- English language adoption follows the same pattern as previous generations
Sources: National Academy of Sciences, Pew Research Center
✗Claim: "Immigrants commit more crime"
✓The Facts:
- Immigrants (including undocumented) commit crimes at LOWER rates than native-born citizens
- Incarceration rates for immigrants are 60% lower than for native-born
- Cities with more immigrants tend to have lower crime rates
- Immigrants have strong incentive to avoid legal trouble that could lead to deportation
- The Cato Institute (libertarian) and academic studies consistently confirm this
Sources: Cato Institute, Department of Justice statistics
✗Claim: "Immigrants are a drain on public resources"
✓The Facts:
- Undocumented immigrants pay $96.7 billion in taxes annually
- They are ineligible for most federal benefits (Social Security, Medicare, SNAP, welfare)
- They contribute $13 billion/year to Social Security they'll never collect
- Second-generation immigrants are among the highest net fiscal contributors
- CBO projects immigration will REDUCE the deficit by $900 billion over 10 years
Sources: ITEP, Social Security Administration, Congressional Budget Office
The 'replacement theory' is not supported by evidence. It misrepresents demographic trends, ignores economic data, and promotes fear over facts. Immigration has been and continues to be a source of American strength, innovation, and economic growth.
Traditional Values & Demographics
Immigrant communities, particularly Latino immigrants, often hold values that align closely with conservative principles: strong religious faith, traditional family structures, exceptional work ethic, respect for law enforcement, and patriotic commitment to America.
Political & Voting Tendencies
While Latino voters have historically leaned Democratic, there has been significant movement toward Republican candidates, particularly among working-class and religious voters.
38%
2020 Latino Vote for Trump
Up from 28% in 2016, showing significant Republican gains
52%
Latino Support for Border Security
Majority support stronger border enforcement
64%
Opposition to Defund Police
Latino voters strongly support law enforcement
43%
Pro-Life Identification
Higher than national average, driven by religious values
Religious Faith
Latino and immigrant communities have significantly higher rates of religious observance and church attendance than the general U.S. population.
- 83% of Latino immigrants identify as Christian
- Latino Catholics attend Mass at higher rates than non-Latino Catholics
- Strong evangelical Christian growth in immigrant communities
- Faith-based community organizations are central to immigrant life
Family Values
Immigrant families tend to have stronger multi-generational family structures, lower divorce rates, and higher rates of two-parent households.
- Immigrant families have lower divorce rates than native-born
- Higher rates of multi-generational households
- Strong emphasis on family unity and parental authority
- Children of immigrants show lower rates of substance abuse
Work Ethic
Immigrants demonstrate exceptionally high labor force participation rates and are often willing to work jobs that native-born workers avoid.
- Labor force participation rate higher than native-born
- Lower rates of welfare dependency
- Strong entrepreneurship and self-employment rates
- Often work multiple jobs to support families
Military Service
Immigrants and their children serve in the U.S. military at high rates, demonstrating patriotism and commitment to American values.
- ~65,000 immigrants currently serve in U.S. military
- Immigrants can earn citizenship through military service
- Medal of Honor recipients include many immigrants
- Strong tradition of military service in immigrant families
Law-Abiding
Research consistently shows that immigrants, including undocumented immigrants, commit crimes at lower rates than native-born citizens.
- Immigrants are 60% less likely to be incarcerated
- Undocumented immigrants have lower crime rates than citizens
- Neighborhoods with more immigrants tend to have lower crime
- Strong incentive to avoid legal trouble
Patriotism & Civic Values
Immigrants who become citizens demonstrate strong civic engagement and appreciation for American institutions and values.
- Naturalized citizens vote at similar rates to native-born
- High participation in civic organizations
- Strong appreciation for constitutional rights
- Many fled countries without rule of law or freedom
Generational Wealth & Cascading Effects
The economic impact of immigration extends far beyond immediate contributions. Research shows that immigrant families build wealth over generations, with second-generation Americans becoming among the highest net fiscal contributors to the U.S. economy.
Educational Attainment
Children of immigrants show higher rates of educational attainment and upward mobility compared to their parents, contributing to long-term economic growth.
- Second-generation immigrants have higher college graduation rates
- Intergenerational income mobility is higher for immigrant families
- Educational investment creates lasting economic returns
Homeownership
Immigrant homeownership rates increase over time, building wealth and stabilizing communities.
- Immigrant homeownership rate reaches 65% after 20+ years
- Home equity is primary wealth-building vehicle
- Property taxes fund local schools and services
Business Formation
Immigrant-owned businesses create jobs and wealth that extends across generations.
- Immigrant businesses employ 8 million+ Americans
- Family businesses often transfer to second generation
- Entrepreneurship creates community wealth
Social Security & Medicare
Immigrants, including undocumented workers, contribute billions to programs they may never benefit from.
- $13 billion annually to Social Security
- $6 billion annually to Medicare
- Helps sustain benefits for aging native population
Economic Theory & Research
Data Sources
Research on tax contributions by undocumented immigrants
- Undocumented immigrants pay $96.7 billion in taxes annually
- State and local tax contributions by state
- Federal tax contributions including payroll taxes
Official data on contributions to Social Security by non-citizens
- Undocumented workers contribute ~$13 billion annually to Social Security
- Most will never collect benefits
- Net positive contribution to the trust fund
Nonpartisan analysis of immigration's fiscal and economic effects
- Immigration increases GDP growth
- Fiscal impact varies by education level and time horizon
- Long-term net positive fiscal contribution
Comprehensive study on economic and fiscal consequences of immigration
- First generation immigrants cost more but their children contribute more
- Second generation among highest net fiscal contributors
- Immigration has overall positive impact on long-run economic growth
Labor force statistics on foreign-born workers
- Foreign-born workers comprise 18.6% of U.S. labor force
- Employment rates and industry distribution
- Wage data by nativity
Research on immigrant entrepreneurship and economic contributions
- Immigrant entrepreneurship rates
- Job creation by immigrant-owned businesses
- Industry-specific contributions
Research Methodology Note
Economic data on immigration comes from multiple sources including government agencies (CBO, SSA, BLS), academic institutions (National Academy of Sciences), and nonpartisan research organizations. Estimates may vary based on methodology and assumptions. We cite primary sources where available and encourage readers to review original research.