THE INSTITUTE ON TAXATION and Economic Policy recently completed a 50-state study on the tax contributions of undocumented immigrants.
Some of the findings:
• Undocumented immigrants collectively pay an estimated $11.64 billion a year in state and local taxes. This includes more than $6.9 billion in sales and excise taxes, over $3.5 billion in property taxes and roughly $1 billion in personal income taxes.
• In California alone, it’s estimated the 3 million undocumented immigrants living in the state contribute more than $3 billion in taxes.
• On average, undocumented immigrants nationwide pay an estimated 8 percent of their incomes in state and local taxes. To put this in perspective, the top 1 percent of taxpayers in the United States on average pay a nationwide tax rate of just 5.4%.
• Under President Obama’s 2012 and 2014 executive actions on immigration, tax contributions from undocumented immigrants could increase by $805 million a year.
• If the U.S implemented immigration reform that granted all undocumented immigrants permanent residence, tax contributions would increase by $2.1 billion a year. The tax rate for this demographic would also increase to 8.6%.
Meg Wiehe, the Institute’s State Tax Policy Director, said about the study, “Regardless of the politically contentious nature of immigration reform, the data shows undocumented immigrants greatly contribute to our nation’s economy, not just in labor but also with tax dollars. ”