Tax Contributions
Do undocumented immigrants pay taxes?
Undocumented immigrants play a crucial role in the U.S. economy, not only through their labor but also through substantial tax contributions that support public services and government programs. In 2023, households led by undocumented immigrants paid $89.8B in total taxes. This includes:- $33.9B in state and local taxes and $55.8B in federal taxes.
- In 2023, approximately 4.9% of the U.S. workforce was undocumented.
- 89.4% of undocumented immigrants are of working age.
Investing in the Children of Immigrants is Critical for American Economy
Immigrants make many contributions to the U.S. economy through their labor power, purchasing power, tax payments, business formation and scientific innovation. Some of these contributions are captured in traditional cost-benefit analyses; others are not. But one of their most valuable economic contributions comes in the form of their native-born children. Read More
Immigration a Boon to U.S. Economy Finds National Panel of Experts
mmigrants and their descendants make valuable contributions to the U.S. economy, according to a new report just released by the National Academies of Sciences, Engineering, and Medicine entitled, The Economic and Fiscal Consequences of Immigration. The exhaustive report is written by a nationally recognized panel of experts. It takes… Read More
How Immigrants Strengthen the Economies of All 50 States
The economic and political impact of immigration is often discussed at the national level. This makes sense, especially since immigration is a nationwide issue and a federal responsibility. Yet this national focus often obscures the effects of immigration within particular states. Perhaps the most systematic and comprehensive effort so far… Read More
What Everybody Ought to Know About Undocumented Immigrants and Taxes
Most Americans pay taxes dutifully with the hope that they will be put to the best uses possible—and with the knowledge they will one day collect benefits from those contributions. However, undocumented immigrants who pay their taxes each year know full-well they may never actually receive many of the benefits… Read More
Undocumented Immigrants Pay Billions in State and Local Taxes
Undocumented immigrants contribute to the U.S. economy in many ways. They fill essential jobs, they sustain U.S. businesses through their purchase of goods and services, and—contrary to popular misconceptions—they pay taxes to federal, state, and local governments. Their contributions would be even greater if they had a chance to… Read More
How Much Do Undocumented Immigrants Pay in State and Local Taxes?
Undocumented immigrants contribute to the U.S. economy in many ways. They fill essential jobs, they sustain U.S. businesses through their purchase of goods and services, and they pay taxes to federal, state, and local governments. Their contributions would be even greater if they had a chance to earn legal… Read More
Deferred Action for Undocumented Immigrants Could Add Billions in Taxes to U.S. Economy
There’s no question that improving the United States’ outdated immigration system would help the economy. The Senate-passed immigration bill S. 744 would have, if enacted, reduced the federal budget deficit by approximately $1 trillion over 20 years and led to an increase in wages for U.S. workers. But House leaders… Read More
Undocumented Immigrants Contribute Billions in Taxes
Death and taxes, according to Benjamin Franklin, are the only things in life that are certain. And despite the prevailing myth perpetrated by nativist groups, there are plenty of undocumented immigrants facing the certainty of taxes on April 15. They pay billions in state and local taxes every year… Read More
Targeting Immigrant Taxpayers as a Matter of Course
Unfortunately, there is a new fallback position for some members of Congress when it comes to finding ways to save money. That position is eliminating the Additional Child Tax Credit for immigrant taxpayers. This has been proposed in the past by other members of Congress; however, the latest iteration is in the form of an amendment that Senator Kelly Ayotte (R-NH) proposed to “pay for a three-month extension of unemployment benefits by stopping a scheme that currently allow {sic} illegal immigrants to claim the Additional Child Tax Credit.” Read More
New Estimates of State and Local Taxes Paid by Undocumented Immigrants
Undocumented immigrants who live and work in the United States pay billions of dollars in taxes every year to state and local governments. Given the chance to earn legal status, they would pay even more. Those are the simple yet powerful conclusions of a new study by the Institute on Taxation and Economic Policy (ITEP). According to ITEP, “undocumented immigrants paid an estimated total of $10.6 billion in state and local taxes in 2010.” Moreover, “allowing undocumented immigrants to work in the United States legally would increase their state and local tax contributions by an estimated $2 billion a year.” In short, legalization pays. Read More
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