A study conducted by The Institute on Taxation and Economic Policy (ITEP) found that undocumented immigrants contribute over $11 billion in tax revenue to the US economy each year. The study, which is based upon state and local tax data analysis, also found that undocumented people in the US pay a higher effective tax rate than the top 1% income bracket in 48 States across the country. ITEP executive director and study author Matt Gardner stated that this new data "certainly makes it hard for people to claim that this is a population that doesn’t make any contributions.”
The facts
ITEP's study debunks an age-old myth in the United States; that Undocumented Immigrants do not pay taxes and are a burden on the economy.
The fact of the matter is that undocumented immigrants pay $11 billion in taxes each year. Sales and excise taxes account for $7 billion, along with $3.6 billion in property taxes. Unsurprising to supporters of populists such as Bernie Sanders and President Trump, ITEP's study revealed that so-called "illegal" immigrants pay a larger share of their income than the top 1% in 48 states across the US.
Future policy
The Institute on Taxation and Economic Policy also found that if Obama-era policies on immigration were kept in tact and undocumented immigrants were granted green cards, they would contribute an additional $2.1 billion annually added onto the $11 billion they already pay annually. ITEP's Matt Gardner has said that extra wage gains for undocumented immigrants would come from "more people being incorporated into the system and having income tax withheld from their paychecks who aren’t having that income tax withheld right now.” The study also estimated that amnesty for undocumented workers would grant them a 10% wage increase, only helping the US economy.
The candidacy and subsequent presidency of Donald Trump has elevated immigration to major issue-status within US political discourse. With the Trump administration already conducting ICE raids against undocumented immigrants, it appears that information put forth by studies such as this one will have no correlation with White House policy on immigration.
