Trump's Anti-Immigrant Rhetoric Threatens Tax Revenue, Economy

Stephen Miller's crackdown on undocumented workers could cost billions in lost tax revenue and labor shortages.

Apr. 15, 2026 at 8:22am

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An extreme close-up of a worn, weathered suitcase sitting on a dimly lit city sidewalk, with warm, diagonal sunlight and deep shadows creating a cinematic, nostalgic mood that conceptually represents the immigrant experience.A solitary suitcase on a city sidewalk evokes the immigrant experience, as anti-immigrant policies threaten economic stability.Berkeley Today

In a recent Fox News interview, Trump's senior advisor Stephen Miller made inflammatory claims about the persistent issues of welfare use, crime, and failure to assimilate among immigrants and their descendants. However, research shows immigrants today are no slower to move into the middle class than immigrants were a century ago, and children of immigrants have higher rates of upward mobility than their U.S.-born peers. Miller's own family history contradicts his anti-immigrant stance, as his great-great-grandfather immigrated to the U.S. in 1903 with just $8. Experts warn that Miller's harsh immigration policies could cost the U.S. economy billions in lost tax revenue as undocumented immigrants avoid filing returns, and lead to labor shortages in key industries.

Why it matters

Trump and Miller's anti-immigrant rhetoric and policies are not only morally questionable, but also pose significant economic risks to the country. Their efforts to crack down on undocumented immigrants could backfire by reducing tax revenue and causing labor shortages in critical sectors like construction, hospitality, and agriculture.

The details

In a recent Fox News interview, Trump senior advisor Stephen Miller made inflammatory claims about the persistent issues of welfare use, crime, and failure to assimilate among immigrants and their descendants. However, research shows that immigrants today are no slower to move into the middle class than immigrants were a century ago, and children of immigrants have higher rates of upward mobility than their U.S.-born peers. Miller's own family history contradicts his anti-immigrant stance, as his great-great-grandfather immigrated to the U.S. in 1903 with just $8. Experts warn that Miller's harsh immigration policies could cost the U.S. economy billions in lost tax revenue as undocumented immigrants avoid filing returns, and lead to labor shortages in key industries.

  • In a recent paper, researchers found that immigrants today are no slower to move into the middle class than immigrants were a century ago.
  • Before Miller ordered the IRS to give ICE the addresses of people subject to deportation, undocumented immigrants had been paying roughly $60 billion annually in federal taxes.
  • The Yale Budget Lab, a nonpartisan research center, projected lost tax revenue of about $300 billion over a decade due to immigrants avoiding filing returns.

The players

Stephen Miller

A senior advisor to President Trump who has promoted harsh anti-immigrant policies.

Donald Trump

The former President of the United States who has embraced an anti-immigrant agenda.

Ronald Reagan

A former President of the United States who celebrated America's identity as a nation of immigrants.

Robert Reich

A professor of public policy at Berkeley and former Secretary of Labor who has criticized Trump and Miller's anti-immigrant rhetoric and policies.

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What they’re saying

“Not only is the first generation unsuccessful, you see persistent issues in every subsequent generation. So you see consistent high rates of welfare use, consistent high rates of criminal activity, consistent failures to assimilate.”

— Stephen Miller, Senior Advisor to President Trump

“You can go to Japan to live, but you cannot become Japanese. You can go to France to live and not become a Frenchman. You can go to live in Germany or Turkey, and you won't become a German or a Turk. But … anybody from any corner of the world can come to America to live and become an American. A person becomes an American by adopting America's principles, especially those principles summarized in the 'self-evident truths' of the Declaration of Independence, such as 'life, liberty, and the pursuit of happiness.'”

— Ronald Reagan, Former President of the United States

What’s next

Experts will continue to monitor the economic impacts of the Trump administration's immigration policies, including potential losses in tax revenue and labor shortages in key industries.

The takeaway

Trump and Miller's anti-immigrant agenda is not only morally questionable, but also poses significant economic risks to the country. Their efforts to crack down on undocumented immigrants could backfire by reducing tax revenue and causing labor shortages, undermining the very principles of opportunity and upward mobility that have defined America's identity as a nation of immigrants.