All Immigrants – Even Undocumented – Pay Billions in Taxes Each Year
We just finished tax season so its good to note the tax benefits of immigrant workers. It is clear that, as Francine Lipman has written, immigrants—both documented and undocumented—contribute billions of dollars in taxes to the United States every year.
Immigrants who are authorized to work in the United States file the same taxes as any U.S.-native including local, state, and federal taxes. Unauthorized immigrants pay taxes as well, often using the Individual Tax Identification Number and consequently are paying the U.S. government for benefits they can’t even use.
These tax contributions add up. Immigrant-led households across the country collectively paid $223.6 billion in federal taxes and $104.6 billion in combined states and local taxes in 2014, the most recent year for which Census data is available.
Undocumented immigrants also contributed more than their fair share of taxes. In 2014, they paid an estimated $11.7 billion in combined state and local taxes. Notably, that contribution would rise to an estimated $13.9 billion if they could receive legal status.
KJ