In the context of my beliefs, I don't see it as racist at all. Though I do believe xenophobes & racists may indeed use the same arguments as part of their beliefs.
But to my mind, I can't fathom the thought of allowing illegal immigration. For many reasons, not just economic. Not the least of which is security and lawfulness. I take my allegiance to the Constitution, and remaining lawful to the legal statutes that flow from it, very seriously. It's all we've got to define us, make us what we are - Americans. If one's first act in the country is unlawful, it's hard for me to take them seriously to buying into what we have, and what we are. One has to earn their citizenship. And it's not earned by starting-out breaking the law.
As to the economic impact, yeah that's a really big deal. I have no qualms sharing some of our abundant bounty, but only after my fellow Americans are taken care of firstly. In fact, I'm blown away that non-citizens are entitled to government benefits. I believe those benefits should be earned as well, by earning one's citizenship (lawfully).
And I might also add, my father came from Europe and my mother was born of European immigrants. We did it legally, and that's what I expect of anyone else that want's to join us in this great experiment. A tour of duty, like my Dad and uncle did to show their gratitude, wouldn't be too bad of a thing either. But I'll make the last, optional.