Undocumented immigrants are currently paying more than $11 billion in state and local taxes every year, according to a report released earlier this week by the Institute on Taxation and Economic Policy. A recent report by Vice has stated that if these immigrants were to receive legal status in the country, they would be likely to contribute around $2.18 billion more in taxes, as they would then be able to earn more and be able to comply fully with the tax code.
The report, which calls Trump administration’s policies on the subject “haphazard in design and impact”, said, “Public debates over federal immigration reform, specifically around undocumented immigrants, often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants, particularly at the state level.”
The study arrived amidst America’s ongoing immigration debate, and following Trump’s reiterated controversial promise of creating the VOICE office in order to provide aid to victims of crimes committed by undocumented immigrants. The Institute on Taxation and Economic Policy study unveiled how much undocumented immigrants currently pay in taxes for goods, services and property tax on their homes. In addition to this, only around half of undocumented immigrants currently file income tax returns, due to many not applying for an Individual Tax Identification Number. According to reports, the states that would benefit most if the immigrants received legal status would be those with the highest number of undocumented citizens, such as California who would receive more than $450 million in tax contributions.
However, the study did not evaluate the cost that each state currently faces to provide education, emergency medical care and housing subsidies to the undocumented immigrants. In 2010, the group found that undocumented immigrants pay a total of $10.6 billion in state and local taxes, which has now risen by $1.14 billion. The study concluded, “In a time when most states are facing revenue shortages, the potential budgetary impacts of mass deportation merits careful consideration.”
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I am Luke Miller, content manager at Truth Theory and creator of Potential For Change. I like to blend psychology and spirituality to help you create more happiness in your life.Grab a copy of my free 33 Page Illustrated eBook- Psychology Meets Spirituality- Secrets To A Supercharged Life You Control Here