Philadelphia Immigration Lawyers: Financial Impact Immigrants have on Tax Revenue

A wide variety of media attention has been given lately to politicians, movements and public interest groups who claim that undocumented immigrants pay either an extremely minimal amount of taxes or that they do not pay any at all. A report released on February 24, 2016 by the Institution on Taxation and Economic Policy (ITEP) aims to not only disclaim that notion, but also to attempt to show the positive impact that undocumented citizens have on tax collection through the use of statistics and simple mathematics.

The ITEP, which is located in the nation’s capital, estimates in their findings that undocumented immigrants pay $11.64 billion a year in taxes. The numbers used to establish the estimate were taken from the United States Census Bureau’s calculations on the nearly 11 million undocumented immigrants living in the United States in combination with tax calculations.

The primary goal of the research by ITEP was to try and persuade decision makers that by legalizing the nearly 11 million undocumented immigrants, not only would local and state governments, but also the federal government and businesses, gain billions of dollars. An economics professor at a prominent university in Arizona asserts that undocumented people who do not file their taxes end up paying more taxes to the government. Similarly, undocumented immigrants who do not claim their tax return simply forfeit the unclaimed amount back to the government. Experts say that this could be because of undocumented immigrants’ fear that if they claim their taxes they could become a target for deportation or for other difficulties down the line. However, there are federal programs that if fully implemented, fear would be somewhat diminished and state and local governments would be able to collect an estimated $805 million more in taxes.

According to the study, these are the not the only financial benefits that could be used to lobby governmental officials into legalizing those currently undocumented people. If all undocumented immigrants in the United States were granted legal status, there would be an annual increase in taxes of about $2.16 billion just from state and local taxes. Additionally, every time an undocumented immigrant buys certain products from stores, such as clothes, soda, cigarettes, motor vehicles and a plethora of other things, they are paying sales taxes just like any other American. The study even found that eight percent of an undocumented immigrant’s income goes to taxes, while only 5.4 percent of the U.S. citizen’s incomes go towards taxes.

Philadelphia Immigration Lawyers at Surin & Griffin, PC, Work with Undocumented Immigrants to Resolve Tax, Citizenship and Discrimination

If you, a loved one or someone you know is an undocumented citizen living in the United States facing hardship regarding their citizenship, contact our team of seasoned and professional Philadelphia immigration lawyers at Surin & Griffin, PC. We will not give up until you or your loved one is treated like every person living in the United States ought to be treated: with respect and integrity. Call us at 215-925-4435 or contact us online for a confidential consultation with one of our veteran Philadelphia immigration lawyers.