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Undocumented immigrants paid almost $100 billion of taxes, underscoring the importance of border policies on the country’s tax collections, according to a new report.

One of the most common arguments for curtailing immigration is the cost borne by the US government. But undocumented immigrants pay more than a quarter, about 26%, of their income in taxes, in line with the median taxpayer, according to a report released Tuesday by the Institute on Taxation and Economic Policy, a left-leaning think tank.

In total, undocumented immigrants paid $96.7 billion, or roughly $9,000 per person, in taxes in 2022, the report shows. While their incomes are usually lower, they’re less likely to claim refunds or earn tax-preferred income.

About one third of the total dollars collected from undocumented immigrants funded programs they’re mostly barred from using, including $26 billion to Social Security and $6 billion to Medicare, the report said.

    • odium
      151·
      4 months ago

      Sales tax mostly I would assume.

      • kevindqc@lemmy.world
        15·
        4 months ago

        At the state and local levels, slightly less than half (46 percent, or $15.1 billion) of the tax payments made by undocumented immigrants are through sales and excise taxes levied on their purchases. Most other payments are made through property taxes, such as those levied on homeowners and renters (31 percent, or $10.4 billion), or through personal and business income taxes (21 percent, or $7.0 billion).

    • mhague@lemmy.world
      11·
      4 months ago

      You use an ITIN and pay taxes. It’s the law that you need to pay taxes whether you’re here legally or not, which means we specifically create pathways for people who are here illegally to pay their fair share. Illegal immigrants pay taxes as one of the ways of building social credit for when they can naturalize.

      • Varyk@sh.itjust.works
        3·
        4 months ago

        This I heard before, but don’t understand. If they send in their itin do they also send in their personal information like name and address when they pay taxes?

        If they do, how would they not get deported?

          • Varyk@sh.itjust.works
            4·
            4 months ago

            Do you mean that if you submit your illegal status to the IRS, they wouldn’t report you to Homeland security or ice or whatever?

            • JWBananas@lemmy.worldEnglish
              6·
              4 months ago

              Correct. The only thing the IRS cares about is whether you have an SSN or an ITIN.

              Picture it: You’re the IRS. You’re basically Santa Claus. You know all.

              Do you tattle? Why?

              Would it get a few people deported? Maybe. Maybe not.

              Would it do anything to solve the systemic issues that result in undocumented immigrants in the first place? Definitely not.

              Would it do anything at all to deter future undocumented immigrants? Not a chance.

              Would it disincentivize undocumented immigrants from paying taxes, reducing the overall revenue you can collect? Absolutely!

              Does this also apply to criminal enterprises and other such persons or groups with secrets? You betcha!

              Would it set a dangerous precedent on the slippery slope into authoritarianism? You tell me!

              • Varyk@sh.itjust.works
                2·
                4 months ago

                I would wager it’s more about the added revenue than concern over authoritarianism, haha, but that’s very interesting that they don’t report it to homeland security.

                Thanks

        • Cryophilia@lemmy.world
          1·
          4 months ago

          Anyone can file taxes with an ITIN. I’m an American citizen and I have an ITIN because it made some tax stuff easier a few years ago.