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Net Costs of Legal Immigration to the U.S. Taxpayer: Summary


Unsustainable 1.5 Million Annual Legal-Immigrant Influx Costs U.S. Taxpayers $330 Billion per Year 

Federal Deficit Faces a $3.3 Trillion Net Hit in Next Decade, Without a Reduction in the 1.5 Million Annual Legal-Immigrant Inflow  

More than 5.9 Million Native-Born American Workers Displaced Since 2005   

Had Annual Legal-Immigrant Influx Been Cut from to 150,000 per Year
Since 2005 Net Costs to U.S. Taxpayers Would Be
$150 Billion per Year at Present

Net Costs of Legal Immigration to the U.S. Taxpayer.  Carrying Capacity Network commissioned economist John Williams of Shadow Government Statistics to study the net fiscal costs of current U.S. immigration policies, which allow for an annual inflow of approximately 1.5 million legal immigrants.  Entitled Net Costs of Legal Immigration to the U.S. Taxpayer, his paper concludes:

    • Annual net costs to the U.S. federal taxpayer of the current approximately 1.5 million legal immigrant inflow run $330 billion per year, at present.

    • If current U.S. policy allowing 1.5 million legal immigrants per year were allowed to continue, costs to the U.S. taxpayer over the next decade would run $3.3 trillion, in today’s dollars. 

    • These net federal-taxpayer costs reflect the fiscal impact of more than 5.9 million American workers displaced since 2005 by legal immigrants, combined with taxpayer outlays covering the net shortfall in federal revenues versus expenses related to the legal-immigrant population.

    • U.S. immigration policies fuelled a massive influx of legal and illegal immigrants to the United States, which has not been, and cannot be, supported by the U.S. economy.

    • These policies have debilitated the health of the U.S. labor market, U.S. fiscal conditions and the prosperity of American workers, households and taxpayers. 

    • The net taxpayer costs estimated here are highly conservative, in that:

      • Headline net costs were assessed based only on legal immigration.  Consideration of illegal immigration would add significantly to headline net-taxpayer costs.
      • Headline labor-force displacement also was based only on legal immigration and covers just the post-2005 timeframe.  
      • Headline net costs were assessed only from the standpoint of the federal taxpayer.  Consideration of net costs to taxpayers at the state and local level would exacerbate total taxpayer outlays meaningfully.  

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