[W]e are a much more secure nation if we do issue driver's licenses and/or state IDs to every resident who applies, regardless of immigration status. Issuing them doesn't make us any less secure, and refusing puts us at risk.
The state driver's license databases are the only comprehensive databases of U.S. residents. They're more complete, and contain more information - including photographs and, in some cases, fingerprints - than the IRS database, the Social Security database, or state birth certificate databases. As such, they are an invaluable police tool - for investigating crimes, tracking down suspects, and proving guilt.
