As for the national debt, the benefits of immigration are only likely to accrue with time. Later generations of immigrants tend to pay more in taxes as educational attainment and incomes rise, according to the Cato Institute’s report, which called children of immigrants “the most potent fiscal engine this country has ever seen.” Should Trump’s immigration crackdown cause a sustained decline in new entries, that engine will be much less powerful than it could have been.
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The data so far largely bears this out. Immigrants contributed more than $650 billion in taxes in 2023, according to the American Immigration Council, an advocacy nonprofit. On a per capita basis, those receipts likely eclipse the contributions of non-immigrants. A recent white paper by the Cato Institute, a libertarian think tank, analyzed years’ worth of tax receipts and government expenditures between 1993 and 2023. It found that immigrants, both documented and undocumented, contributed vastly more in taxes than they received in benefits at the local, state, or federal level. In total, Cato found, immigrant taxpayers delivered $14.5 trillion in fiscal surplus over the period studied.