If you’re worried about deportation, you might wonder if U.S. immigrants really help or hurt the U.S. economy. It’s a tough question, and there’s a lot of debate about it. Some people believe immigrants are too costly for taxes and services. Others say they are vital to the American economy.
The truth is, most economists agree that immigration is good for the United States’s economy overall. So, while there are concerns, the benefits that United States immigrants bring—like taxes, jobs, and new businesses—often outweigh the costs.
In this post, we will discuss two important topics. First, the $88 billion cost of deporting 13.3 million immigrants. Second, how immigrants contribute to the U.S. economy. We will also look at some important jobs that immigrants do in the U.S., like farming, building, and healthcare.
Let's examine how immigrants help boost our economy. We’ll look at whether immigrants are taking jobs from Americans and also see why deporting them could potentially harm everyone.
The Potential Cost of Mass Deportations in the U.S. Economy
Some people think the U.S. should deport U.S. immigrants, but many believe this could hurt the U.S. economy. Deportation would reduce the number of people working and paying taxes, which would cost the country money. In fact, immigrants contribute more in taxes than they cost the government.
Studies show that immigrants without permission help the government by paying taxes. They do this even though they don’t receive benefits like Social Security. If we deport U.S. immigrants, it could cost the country a lot of money in lost taxes and other expenses. The cost of deporting U.S. immigrants could lower the number of workers in the U.S. economy, which could slow down growth.
The $88 Billion: The Cost of Deporting 13 Million Immigrants
Deporting over 13 million U.S. immigrants would cost around $88 billion within a year. This includes the costs of arresting, detaining, and sending people back to their home countries. Many government agencies would take part in this process. This includes U.S. Immigration and Customs Enforcement (ICE) and the Department of Justice. This would be very expensive.
But deporting such a large number of people would also cause problems. Many businesses rely on immigrants for their workers. If these people were sent away, many industries could struggle. The U.S. economy might slow down, and it could hurt local communities.
How U.S. Immigrants Help the U.S. Economy
U.S. Immigrants help the U.S. economy grow by working and spending money. When immigrants spend money, it creates more demand for goods and services, which helps businesses grow.
Immigrants also start immigrant-run businesses in the U.S. more often than U.S.-born people. In fact, immigrants helped create 30% of patents in important industries in recent years. More than 40% of the biggest U.S. companies were started by immigrants.
The Impact of U.S. Immigrants Within the U.S. Economy
Mass deportation would hurt the U.S. economy a lot. It could shrink the country's GDP by 4.2 to 6.8 percent. The government would also lose a lot of money from taxes. In 2022, immigrant families without legal papers paid $46.8 billion in federal taxes. They also paid $29.3 billion in state and local taxes. They also helped fund Social Security, giving $22.6 billion, and Medicare, with $5.7 billion.
If millions of workers were deported, businesses like construction, farming, and hotels would struggle. Around 14 percent of construction workers are immigrants without legal papers. Without them, building homes, schools, and roads would be harder. This could lead to U.S.-born workers losing jobs too.
Interesting Fact:
In the future, immigration is expected to help the U.S. economy even more. The Congressional Budget Office (CBO) reports that more immigrants from 2024 to 2034 could boost the American economy. They estimate an increase of $8.9 trillion.
The Economic Impact on Mixed-Status Family Households
What about the impact on mixed-status families? Under Trump's plan, entire families, including U.S.-born children, could be deported if even one member is undocumented. While the goal is to keep families together, this approach strips away the rights of U.S. citizens and forces them to leave their homes.
The Special Deportation Report by the American Immigration Council has found that 5.1 million kids in the U.S. have an undocumented family member. If these families were separated, it would cause a lot of sadness and financial problems. Many families would lose their main income, making life much harder for them, highlighting deportation's effect on U.S. economy and families.
Concerning Finding:
Deporting undocumented immigrants would break up 4 million families. This would hurt 8.5 million U.S. citizens, including 5.1 million U.S. citizen children. These families would lose an average of $51,200 a year, or 62.7% of their income.
This would make it much harder for them to take care of their children and pay for basic needs. This would ultimately negatively affect the U.S. economy.
Key U.S. Economy Jobs: Immigrants Play an Important Role
U.S. Immigrants play a big part in the U.S. workforce, helping keep the U.S. economy strong with important jobs. Learn more about the jobs immigrants do in the U.S. economy and how they contribute to the United States economy below:
1. Agriculture: Growing America’s Food
The role of immigrants in U.S. agriculture is significant. More than 50% of farm workers are immigrants. Immigrants help with planting, harvesting, and packing the food we eat. Without them, many farms would not have enough workers to get the food to stores.
In states like California, Texas, and Florida, agriculture is a big part of America’s economy. Immigrants also run their own farms, which helps create even more jobs.
2. Construction: Building Homes and Roads
Mass deportation would make it much harder to build houses, roads, and buildings in the U.S. Immigrants are a big part of the construction industry, working as builders, plumbers, roofers, and more. Without them, it would be harder to build the things our country needs.
These workers help keep building costs low and make sure projects get finished on time. Without them, construction delays would slow down new home builds and other important projects, like bridges and highways. This could also hurt jobs in industries that rely on housing. This includes real estate, home improvement stores, and building supply companies.
3. Healthcare: Taking Care of People
U.S. Immigrants are a big part of healthcare in the U.S. About one in four healthcare workers are immigrants. They work as doctors, nurses, and home health aides. Immigrants also help take care of elderly people who need help at home.
In places like California and New York, immigrants are very important to the healthcare system and the U.S. economy. During the COVID-19 pandemic, many immigrants worked on the front lines to help care for people who were sick.
They often work in under-served areas where there’s a shortage of healthcare workers. By doing this, immigrants help more people get the care they need. The importance of immigrants in U.S. healthcare was evident during the COVID-19 pandemic.
Interesting Fact:
Around 6.3 million U.S. immigrants worked on the frontlines during the coronavirus pandemic. Immigrants in healthcare cared for people, stocked shelves at stores, and kept gas stations running.
They made food, medicine, and cleaning supplies. They also worked on farms and drove buses and taxis. They delivered mail and helped with important research. These workers were there when we needed them most.
4. Science, Technology, Engineering, and Math: Innovation and Progress
U.S. Immigrants are vital to many specialized jobs in the U.S. economy, especially in IT and engineering. They work as computer scientists, civil engineers, software engineers, data analysts, and in other engineering roles like mechanical, electrical, and chemical engineering.
Without immigrant contributions to American innovation through initiatives as STEM, many tech and engineering companies would face challenges staying competitive. Immigrants fuel innovation, and some of the world’s leading tech startups were founded by them. Their contributions not only improve technology but also help the U.S. stay a global leader in innovation and progress.
5. Hospitality Industry: Keeping the Service Industry Thriving
The hospitality industry plays an important role within the U.S. economy where U.S. immigrants play an important role. This includes jobs at hotels, restaurants, and other service businesses. Many workers in this field, including chefs, housekeepers, and waitstaff, are immigrants.
These jobs often need long hours and hard work. Immigrants are ready to take them, helping businesses run smoothly. Without these workers, the hospitality industry would face serious challenges, especially during busy seasons.
6. Medical Research: Driving Medical Advancements
U.S. Immigrants play an important role in medical research. They help make advancements that improve healthcare for all. Many researchers, doctors, and healthcare workers in the U.S. come from immigrant backgrounds. They bring unique ideas, skills, and innovations to medicine.
Immigrants have played a key role in finding life-saving treatments. They have helped develop vaccines and lead studies that advance science. Their contributions help keep the U.S. leading in medical advancements. This benefits the U.S. economy and the well-being of people worldwide.
Interesting Fact:
From 2000 to 2022, U.S. immigrants made up nearly 75% of the growth in the U.S. working-age population. With an aging population and rising retirements, immigration will play a key role in filling jobs.
By 2040, all growth in the U.S. population is expected to come from immigration. Efforts to increase birth rates have not worked.
The Important Role U.S. Immigrants Play in Paying Taxes
Taxes are important to the U.S. economy because they help the government pay for services. They also help enforce laws and invest in the country's growth.
Like U.S. citizens, U.S. immigrants pay taxes. They pay sales taxes, property taxes (either directly if they own homes or indirectly through rent), and payroll taxes. Even immigrants who are in the country illegally often pay taxes. Tax contributions of undocumented immigrants also play a major role. Even though undocumented immigrants paying taxes can’t get benefits like Social Security or Medicare, they still help the government with taxes.
At the federal level, studies show that immigrants pay more in taxes than they use in government services. At the local and state levels, immigrants may cost more than they contribute in taxes. This is mainly due to the cost of public schools for their children.
Concerning Finding:
Mass deportation would take away billions of dollars in taxes that undocumented families pay to the government. In 2022, these families paid $46.8 billion in federal taxes and $29.3 billion in state and local taxes. After paying taxes, they still had $256.8 billion to spend. This money helps support local businesses and communities.
Do U.S. Immigrants Take Jobs from U.S. Workers?
Some people think that immigrant labor takes jobs from U.S. workers. However, studies show that immigrants do not actually take jobs from others. Instead, immigrants often help to boost the U.S. economy by creating new jobs by buying goods and services.
They also fill jobs that are hard to fill, like technical jobs or lower-wage jobs in farming or construction. This has a significant impact of immigration on U.S. labor shortages. Immigrant and job opportunities in U.S. industries are far-reaching.
When immigrants are hired, it often helps businesses grow, which means they can hire more workers, including U.S. workers. For example, if a company hires skilled immigrants for key jobs, it can grow to boost the U.S. economy. This allows the company to hire more U.S. workers in areas like sales or accounting.
U.S. Immigrants tend to have different skills than U.S. workers. Some have special skills, like engineering, that U.S. workers might not have. Some people take jobs that U.S. workers do not want. These jobs often pay low wages or are very hard. Examples include work in agriculture or roofing.
Concerning Finding:
Mass deportation would take away billions of dollars in taxes that undocumented families pay to the government. In 2022, these families paid $46.8 billion in federal taxes and $29.3 billion in state and local taxes. After paying taxes, they still had $256.8 billion to spend. This money helps support local businesses and communities.
Do U.S. Immigrants Take Jobs from U.S. Workers?
Some people think that immigrant labor takes jobs from U.S. workers. However, studies show that immigrants do not actually take jobs from others. Instead, immigrants often help to boost the U.S. economy by creating new jobs by buying goods and services.
They also fill jobs that are hard to fill, like technical jobs or lower-wage jobs in farming or construction. This has a significant impact of immigration on U.S. labor shortages. Immigrant and job opportunities in U.S. industries are far-reaching.
When immigrants are hired, it often helps businesses grow, which means they can hire more workers, including U.S. workers. For example, if a company hires skilled immigrants for key jobs, it can grow to boost the U.S. economy. This allows the company to hire more U.S. workers in areas like sales or accounting.
U.S. Immigrants tend to have different skills than U.S. workers. Some have special skills, like engineering, that U.S. workers might not have. Some people take jobs that U.S. workers do not want. These jobs often pay low wages or are very hard. Examples include work in agriculture or roofing.
Concerning Finding:
Mass deportation would make the U.S. labor shortage even worse. In 2022, nearly 90% of undocumented U.S. immigrants were of working age. In contrast, only 61.3% of U.S.-born people aged 16 to 64 were working age.
This means undocumented immigrants are more likely to grow the U.S. economy as they’re part of the workforce. Losing these workers would make it harder for industries already struggling to find enough employees.
Smarter Immigration Solutions: How to Better Spend $6 Trillion
If you add up the cost of mass deportation and the money lost from taxes that undocumented immigrants pay, fixing the so-called “Biden Administration Border Crisis” could result in the $6 trillion cost of mass deportation for U.S. taxpayers.
The question is, can this money be better spent to create a win-win for all in the United States?
Instead of spending money on mass deportation, the U.S. could use those resources to help immigrants become part of the economy. Many pro-immigration states in the U.S. are already implementing these initiatives. Here are some better ways to spend that money:
1. Workforce Training Programs
Offer training programs to help U.S. immigrants learn new skills or improve their current ones. This would help fill jobs in industries that need more workers, like healthcare, technology, and construction.
2. English Language Classes
Provide free or affordable English classes. When U.S. immigrants speak better English, they can get higher-paying jobs and contribute even more to their communities.
3. Pathways to Legal Status
Create programs that help undocumented U.S. immigrants earn legal status through work, education, or community service. Biden's Parole in Place policy aimed to help certain groups get temporary legal status. Making these programs bigger would help more immigrants join the economy.
They could pay taxes and create better lives for their families. It would also help fill jobs in important industries. Unfortunately, a program called Parole in Place (PIP) was blocked. This program was intended to help families stay together.
This has made things harder for many families. But there is still hope for U.S. immigrants and the U.S. economy with other options. The I-601A Waiver can help families to continue to build a future together in the U.S. You can schedule a free consultation with a Los Angeles I-601A Waiver attorney today. They can help you explore your options.
4. Support for Small Businesses
U.S. Immigrants often start small businesses. The government could offer loans or grants to help these businesses grow, creating jobs and boosting local economies.
5. Education for Children
Invest in schools to ensure immigrant children, including DACA recipients (Dreamers), get a good education. These students have already shown resilience and ambition, and supporting their education helps them succeed. With the right chances, they can be the next group of workers, leaders, and innovators.
Across the country, Dreamers and DACA recipients are making a difference. They’re opening businesses, supporting their communities, and building brighter futures for themselves and their families.
6. Community Integration Programs
Fund programs that connect immigrants with local communities, helping them adjust and contribute more effectively. This could include mentorships, cultural exchanges, and job placement assistance.
These steps will help immigrants succeed. They will also boost the U.S. economy by using their skills and potential better to grow the U.S. economy.
Balancing the Costs and Benefits
We should not only focus on the costs of deportation. We should also consider how immigrants help build the U.S. economy. They take on vital jobs, help businesses thrive, and pay taxes that keep everything running. Overall, immigration is a big plus for the U.S. economy.
While there are some costs, especially at the local level, the benefits far outweigh them. Instead of focusing on Trump’s deportation plan, we should find ways to help U.S. immigrants contribute more. They can do this by paying taxes and becoming citizens. They’re an important part of what makes America successful.
Please View Our Sources for More Details:
Authors: David J. Bier. (2024, November 24). The Math on Mass Deportation Doesn’t Add Up. CATO Institute.
Authors: American Immigration Council Special Report. (2024, October 2). Mass Deportation
Devastating Costs to America, Its Budget and Economy. American Immigration Council.
Authors: Julia Gelatt. (2024, October). Explainer: Immigrants and the U.S. Economy. Migration Policy Institute.
Authors: Catherine E. Shoichet. (2020, April 20). Trump is threatening to block immigration over coronavirus. But immigrants are on the frontlines of the pandemic. CNN US.
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