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Myths about Immigrants,
Welfare, and the Economy
s for immigrant use of welfare benefits, undocumented workers and their families are not eligible for cash welfare or food stamps. They are only eligible for emergency medical assistance, prenatal care and educational benefits, all of which are considered worth providing so as to reduce health emergencies, epidemics and the social problems associated with lack of schooling.
In fact, a proper analysis of welfare receipt rates shows that immigrants are not more likely than native-born residents to receive welfare. Excluding emergency refugees (who are eligible for several types of assistance in virtually any country to which they escape), recent immigrants receive public aid at lower rates than the native-born and immigrant use of welfare has been decreasing for over twenty years.
Contrary to common perception, today’s immigrants (largely of color) are actually less likely to receive assistance than were the European immigrants of the early 1900s. Over half of all welfare recipients in 1909 were immigrants, and these immigrants were three times more likely to receive assistance than the native-born.
As for the cost of immigration to the public sector, rather than draining taxpayer coffers, immigrants actually contribute positively to the economic health of the United States; indeed, recent immigrants create a net surplus to the public sector of nearly $30 billion annually, according to the Urban Institute.
Data from New York State—with the second largest immigrant population in the nation—shows that the foreign born population there pays about $18 billion in taxes each year, with a per capita tax payment that is hardly distinguishable from their native born counterparts. Even those immigrants who are in New York illegally (only 16% of immigrants in the state) pay over $1 billion annually in taxes.
In California—home to 43% of illegal immigrants in the U.S.—undocumented workers contribute approximately seven percent of the state’s economic product: roughly $63 billion annually. According to a study by researchers at UCLA, the gross economic contribution by each illegal immigrant to the economy of California was nearly $45,000 per year.
Given that the average undocumented worker receives very low wages—typically less than $10,000 annually—this means that even with paltry social service benefits available to these immigrants, the net transfer of income is exactly the opposite of that implied by immigrant bashers. Instead of the state and nation subsidizing immigrants, it is more accurate to say that immigrants subsidize the economy and the companies for which they work by performing low-wage labor that is worth at least four times more, on average, than what they earn from income and welfare combined.
The study most often cited to “prove” the high cost of immigrants relative to the taxes they pay was conducted by Donald Huddle, of Rice University, on behalf of the anti-immigration group, Carrying Capacity Network. Yet further analysis of the Huddle study by researchers at the Urban Institute revealed several flaws which undermine its conclusions.




s for immigrant use of welfare benefits, undocumented workers and their families are not eligible for cash welfare or food stamps. They are only eligible for emergency medical assistance, prenatal care and educational benefits, all of which are considered worth providing so as to reduce health emergencies, epidemics and the social problems associated with lack of schooling.
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