Overview
- Without immigrants, public debt would be about 205% of GDP, roughly twice the 2023 level, according to the report.
- From 1994 to 2023, immigrants generated roughly 14% of tax revenue while accounting for about 7% of government spending, cutting deficits by nearly one-third.
- The authors attribute the fiscal gains to higher employment rates, arrival at prime working ages that reduce schooling costs, and lower use or eligibility for age-based entitlements.
- Cato estimates undocumented immigrants reduced deficits by at least $1.7 trillion, while noting significant measurement challenges for this group.
- Even low-skilled immigrants lowered debt by $2.8 trillion, and the overall effect stayed positive when including the U.S.-born second generation at about $7.9 trillion.