Why are states considering their own immigration legislation?

States are considering their own immigration legislation because they're frustrated. They're frustrated that the federal government has been playing politics with this issue and hasn't solved the problem. And unfortunately, they're pursuing legislation that's costly, that's unconstitutional, and that doesn't stop illegal immigration and doesn't fix the problem.

What economic impact would these bills have if they achieved their goals?

These bills are costly. They're costly because they're unconstitutional. And Arizona, which passed an immigration bill a year ago, has already spent $1.5 million trying to defend a piece of legislation that's simply indefensible. The laws are also costly because the state becomes controversial. Arizona has lost $217 million already in conferences that were canceled, or in conferences that will never happen because the state is now viewed as controversial and inhospitable. And that's the third cost; that if the state becomes a place where people don't want to live, because they feel like they're going to become targets, they're going to leave. And if lawmakers could wave a magic wand and get rid of all the people without papers tomorrow in Arizona, it would cost their state. They would decrease tax revenue by 10 percent. It's an economic loser for businesses and for the state of Arizona and other states to pursue anti-immigrant laws.

What would be a better policy for dealing with immigration?

A better policy for dealing with immigration is one that doesn't pick the pocket of American taxpayers. Rather, one that makes employers follow the rules. Make sure that people are on the books, that people are paying taxes. We should make sure that all immigrants, unauthorized and authorized, are in the system, and registered, learning English, and playing by the rules. If we could legalize the unauthorized population in Arizona, for example, it would be a moneymaker. These are economic engines. These people would pay taxes. They would start businesses. We'd pull them out of the shadows and in the light of the day, and there would be economic boost for Arizona. Conversely, what we're doing now is putting them back in the shadows, off the books, and employers can continue to break the rules.