Study Shows U.S. Immigrants Contribute More in Taxes Than They Receive in Benefits
Concept of difficulties that immigrants suffer trying to enter in Usa.
A new long-term study highlights that immigrants in the United States consistently pay more in taxes than the value of government benefits they use, challenging common perceptions about their impact on public finances.
The analysis, conducted by the Cato Institute over a 30-year period, found that immigrants and their families have contributed a net positive effect on the U.S. economy. According to the study, immigrants use 24% fewer welfare benefits per person than native-born Americans, while noncitizens — including undocumented residents — consume 53% less.
Over the three decades studied, the researchers calculated that immigrants generated a cumulative fiscal surplus of $14.5 trillion (in 2024 dollars), which includes roughly $3.9 trillion in savings on government debt interest.
Tax Contributions by Undocumented Residents
Focusing specifically on undocumented immigrants, the Institute for Taxation and Economic Policy reported that in 2022 they paid approximately $96.7 billion in federal, state, and local taxes, with $1.5 billion collected in Illinois alone. Another report by the American Immigration Council estimated that undocumented immigrants contributed $90 billion in taxes in 2023.
Ongoing Debate in Illinois
Despite these findings, some Illinois conservatives remain opposed to public benefits for undocumented residents. Short-lived state programs aimed at providing healthcare to undocumented adults ran $547 million over budget between 2021 and 2023, prompting Governor JB Pritzker to scale back coverage to only the oldest patients.
State Representative Travis Weaver (R-Peoria) said, “Illinois citizens don’t receive free health care. It doesn’t make sense to provide free health care to those here illegally.”
Economic Implications
The research counters common arguments that immigrants are a fiscal burden. Instead, it emphasizes the net positive contributions immigrants make to tax revenues and public finances over time, even while some state programs face funding challenges.
The study underscores the complexity of immigration policy, balancing economic contributions with social program costs — and suggests that immigrants, including undocumented residents, play a significant role in supporting government services nationwide.
