US: Undocumented immigrants paid almost $100B in taxes in 2022
A study by the Institute on Taxation and Economic Policy (ITEP) has challenged common misconceptions about the financial strain, imposed by immigration on the US government. It revealed that undocumented immigrants in the country contributed nearly $100 billion in taxes in 2022. They also paid approximately 26% of their income in taxes, a rate comparable to the median US taxpayer.
Undocumented ones unlikely to claim tax refunds
In 2022 alone, undocumented individuals contributed an estimated $96.7 billion to tax revenues, averaging around $9,000 per person. Interestingly, despite typically earning lower incomes than documented citizens, they were less likely to claim refunds or earn tax-preferred income.
The immigrants fund programs they can't use
The ITEP report also highlighted that about one-third of the total tax dollars collected from undocumented immigrants, are used to fund programs for which they are largely ineligible. Specifically, $26 billion was directed toward Social Security and $6 billion was allocated to Medicare. These figures underscore the significant financial contribution made by this group, despite their limited access to benefits.
Geographic distribution and potential tax increase
The report shed light on the geographic distribution of undocumented immigrants across the US. More than half reside in California, Florida, Texas, and New York. Six states, including New York and California, bagged over $1 billion in tax revenue from their undocumented residents. The ITEP suggests that granting work authorization could potentially increase tax contributions from these workers, by improving compliance and wages.
