The counter-argument study to the
one that was presented to the House Judiciary committee in January is
this one, from the Institute on Taxation and Economic Policy, which is a left-leaning, nonprofit think tank.
Their findings show that undocumented immigrants paid nearly $100 billion in federal, state and local tax revenue in 2022 while many are shut out of the programs that their taxes fund. These findings run counter to anti-immigrant rhetoric that undocumented immigrants are
“destroying” social programs. In 40 states, undocumented immigrants paid higher tax rates than the top 1% of the income scale in those states, according to the
study.
The case study, which uses estimates of undocumented immigrants’ tax contributions as of 2022, shows those totaled $96.7 billion that year. Study authors also found that undocumented immigrants would contribute $40.2 billion more per year in federal, state and local taxes if all of the undocumented population had access to work authorization. Undocumented immigrants are paying 46% of their state and local tax payments through sales and excise taxes. Six states — New Jersey, New York, California, Florida, Texas, and Illinois — were able to raise more than $1 billion each in tax revenue from undocumented immigrants,.
Undocumented immigrants also pay property taxes and sales taxes, and federal payroll taxes taken from their wages, as well as income tax returns using Individual Taxpayer Identification numbers.
Despite those payroll taxes funding Medicare, Social Security, and Unemployment Insurance, undocumented immigrants are not eligible to enroll in and receive regular benefits from these social programs. They can face barriers to getting tax refunds.
The study, which uses estimates of undocumented immigrants’ tax contributions as of 2022, shows those totaled $96.7 billion that year. S
tudy authors also found that undocumented immigrants would contribute $40.2 billion more per year in federal, state and local taxes if all of the undocumented population had access to work authorization. The Institute on Taxation and Economic Policy reasoned that this boost would come from higher wages associated with employment authorization and easier compliance with income tax laws.
Immigration and economic experts who spoke about the significance of the report highlighted the Congressional Budget Office’s July report on the rise in immigration and its effects on the economy and budget, which found that this increase in immigration would add $1.2 trillion in federal revenue from 2024 to 2034
A new study shows that undocumented immigrants paid nearly $100 billion in federal, state and local tax revenue in 2022 while many are shut out of the programs their taxes fund
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