How illegal workers affect the economy

At the federal level, the big cost is through Medicaid and food-assistance programs, according to Steven Camarota, research director at the Center for Immigration Studies, which favors stricter immigration rules.

Camarota acknowledges that some illegal immigrants pay federal taxes, but he said their cost to the federal government — $12 billion, according to his estimate — is greater.

There’s another way to look at it. Since they pay payroll taxes, they’re helping to bankroll Social Security and Medicare but won’t get to participate in the programs because of their immigration status.

“From our standpoint, this is not a top fiscal issue,” said Pete Sepp, spokesman for the National Taxpayers Union.

Experts note that illegal immigrants also spend part of their paychecks in this country — for food, clothes, furniture, living expenses and other things — all of which contribute to economic growth. But many also send some of their earnings to their families in their native countries.

Still, they expand the nation’s overall labor pool and productivity. “We can make more stuff and that can add to overall economic activity,” said Andrew Bernard, professor of international economics at Dartmouth College’s Tuck School of Business.

In Congress, diverse proposals have been offered to deal with the immigration issue.

House-passed legislation takes a tough approach, including provisions making illegal immigrants’ presence in this country a felony. A Senate proposal sets out a path that would make illegal immigrants who came to the United States before 2004 eligible for permanent residency.

If all the illegal workers in this country were booted out tomorrow, economists believe wages would have to rise significantly to get U.S.-born workers to take their jobs.

“It would take time for that to occur and during this period of adjustment — some things might not get done — maybe some crops won’t be picked or some hotel rooms won’t get cleaned,” said Mark Zandi, chief economist at Moody’s Economy.com. In some cases, companies might opt to invest in machines and other automation rather than hire higher-paid workers, economists said.

Under these scenarios, consumers’ prices could rise.

Two-thirds of Americans polled think illegal immigrants fill jobs that most Americans do not want, according to a recent AP-Ipsos poll.

But the survey found greater ambiguity on whether illegal immigrants are good or bad for American society. Fifty-one percent said illegal immigrants mostly make a contribution to society, and 42 percent said they were mostly a drain.

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