The Institute on Taxation and Economic Policy reports that undocumented immigrants in the United States contribute significantly to state and local taxes, collectively paying an estimated $11.64 billion a year. This total does not include the amount they pay in federal income tax and social security.
The report, titled “Undocumented Immigrants’ State & Local Tax Contributions,” charts contributions by state. Texas benefits to the tune of $1,542,397,000.
The analysis finds their combined nationwide state and local tax contributions would increase by $805 million under full implementation of the Obama administration’s 2012 and 2014 executive actions and by $2.1 billion under comprehensive immigration reform.
The report does not include the costs of local services consumed by the undocumented residents, including education, health care and law enforcement. However, a 2007 report by the Congressional Budget office determined that those costs are under 5% of a state’s total spending.
Founded in 1980, the institute is funded by private donations and foundation grants. Its 10-member board includes former U.S. Labor Secretary Robert Reich; Henry Coleman, a professor of public policy at Rutgers University; and Robert Kuttner, coeditor of the American Prospect, which calls itself a magazine of “liberal ideas.”
“Undocumented Immigrants’ State & Local Tax Contributions,” by the The Institute on Taxation and Economic Policy, February 24, 2016
“Undocumented, but not untaxed: How much immigrants pay,” by Michael Matza, The Philadelphia Inquirer, February 25, 2015