Simple solution to the "illegals" problem. Get rid of the frontier. And of all the government subsidies for anything other than : army (it means diplomats too), police and justice.
Let people earn their money, share it with whoever they think is worth it. Just assure their safety from outside attacks and dispense the same justice to everyone.

Minarchism FTW !

[Linked Image from w3.the-kgb.com][Linked Image from w3.the-kgb.com]