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$97 billion in federal, state and local taxes in 2022

Undocumented immigrants paid nearly $97 billion in federal, state and local taxes in 2022, according to a July 2024 report, opens new tab by the Institute on Taxation and Economic Policy (ITEP), which used data on taxpayers with ITINs to estimate tax revenue.

https://www.reuters.com/fact-check/undocumented-immigrants-can-do-pay-taxes-2025-02-26/
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Thinkerbell · 41-45, F
You're only telling half the story.

The other half is how much do they cost?

"The FAIR study, released in March last year, documented the financial toll of illegal immigration on the U.S., taking into account factors like emergency medical care, incarcerating illegal aliens in local jails, and federal budgets that pay out billions in welfare every year, pegging the net annual cost at $150.7 billion."

https://www.newsweek.com/illegal-immigration-costs-us-billions-biden-administration-policy-impact-taxpayer-burden-1866555

Looks like a net loss of over $53 billion...
SatanBurger · 36-40, F
@Thinkerbell You're only telling half the story.

The FAIR Study’s Bias – FAIR (Federation for American Immigration Reform) is an anti-immigration think tank. Their reports are often criticized for cherry-picking data to inflate costs while downplaying contributions. Even conservative-leaning fact-checkers have called out their methodology.

Economic Contributions Beyond Taxes – Immigrants (including undocumented ones) contribute to the economy in ways beyond just tax revenue. They fill essential jobs, drive demand for goods and services, and support Social Security and Medicare through payroll taxes, even though they rarely collect benefits.

Long-Term Impact – Studies from nonpartisan sources, like the Cato Institute and the National Academy of Sciences, generally find that while some government expenditures increase in the short term, immigrants (especially their children) contribute more over time.

Selective Cost Framing – Many native-born citizens also receive public benefits and use emergency services. But we don’t calculate their “net cost” and argue they shouldn’t be here. Why apply this logic only to immigrants?

....

It's also worth noting that immigrants tend to be younger and healthier on average than the native-born population, meaning they generally use fewer healthcare services.

Additionally, many undocumented immigrants do pay into Medicare and Social Security through payroll taxes but are ineligible to collect benefits, effectively subsidizing the system for others.

So while there may be some increased emergency medical costs, the overall financial picture is more complex than just a simple burden-versus-benefit calculation.
Thinkerbell · 41-45, F
@SatanBurger

So I should believe ITEP's numbers instead?

The Institute on Taxation and Economic Policy (ITEP) is a non-profit, Left-Leaning think tank that works on state and federal tax policy issues. ITEP was founded in 1980, and is a 501(c)(3) tax-exempt organization. [boldface added]

https://en.wikipedia.org/wiki/Institute_on_Taxation_and_Economic_Policy

"Immigrants (including undocumented ones) contribute to the economy in ways beyond just tax revenue. They fill essential jobs, drive demand for goods and services, and support Social Security and Medicare through payroll taxes, even though they rarely collect benefits."

And how many undocumented immigrants work off the books...? 🤔

It is a common ploy to include legal immigrants in discussions such as this, in an attempt to cover up what the illegals cost. NOBODY is complaining about legal immigrants.
SatanBurger · 36-40, F
@Thinkerbell Here is ITEP from mediabias
factcheck site:

Analysis / Bias

ITEP has been sourced by both Republicans and Democrats, however, they favor a more liberal economic policy. ITEP also has a blog that reports on taxes and economic policy. There is little use of loaded language and all information is properly sourced. A factual search reveals that they have never failed a fact check. In fact, ITEP is frequently used as a source for fact checks regarding tax policy.

https://mediabiasfactcheck.com/institute-on-taxation-and-economic-policy-itep/

Here is FAIR from the mediabiasfactcheck site:

https://mediabiasfactcheck.com/the-federation-for-american-immigration-reform-fair/

A questionable source exhibits one or more of the following: extreme bias, consistent promotion of propaganda/conspiracies, poor or no sourcing to credible information, a complete lack of transparency and/or is fake news. Fake News is the deliberate attempt to publish hoaxes and/or disinformation for the purpose of profit or influence (Learn More). Sources listed in the Questionable Category may be very untrustworthy and should be fact-checked on a per-article basis. Please note sources on this list are not considered fake news unless specifically written in the reasoning section for that source. See all Questionable sources.

Overall, we rate FAIR Questionable based on Extreme Right-Wing Bias as it relates to immigration, promotion of propaganda and conspiracies, as well as having connections to documented Hate Groups.

Analysis / Bias

According to the Southern Poverty Law Center “The Federation for American Immigration Reform (FAIR) is a group with one mission: to severely limit immigration into the United States. Although FAIR maintains a veneer of legitimacy that has allowed its principles to testify in Congress and lobby the federal government, this veneer hides much ugliness. Further, FAIR has ties to white supremacist groups.

In review, FAIR publishes articles and research that is currently Pro-Trump, such as this: Trump Administration Immigration Accomplishments. They also routinely denigrate immigrants as criminals or dangerous for America such as these: Examples of Serious Crimes By Illegal Aliens and conspiracies such as Could Uncontrolled Immigration Expose Us to a Public Health Crisis? This latter article is sourced to a wide range of Questionable far-right sources such as Breitbart, Gatestone Institute, and Judicial Watch.

According to the right-leaning Cato Institute, FAIR has published questionable research that is “fatally flawed.” Cato reports: “Its recent report, ‘The Fiscal Burden of Illegal Immigration on United States Taxpayers (2017)’ by Matthew O’Brien, Spencer Raley, and Jack Martin, estimates that the net fiscal costs of illegal immigration to U.S. taxpayers is $116 billion. FAIR’s report reaches that conclusion by vastly overstating the costs of illegal immigration, undercounting the tax revenue they generate, inflating the number of illegal immigrants, counting millions of U.S. citizens as illegal immigrants, and by concocting a method of estimating the financial costs that are rejected by all economists who work on this subject.

Failed Fact Checks

A factual search reveals a poor track record with fact-checkers.

Overall, we rate FAIR Questionable based on Extreme Right-Wing Bias as it relates to immigration, promotion of propaganda and conspiracies, as well as having connections to documented Hate Groups. (9/7/2016) Updated (D. Van Zandt 01/03/2025)
SatanBurger · 36-40, F
@Thinkerbell The argument that they don't contribute to the economy is misleading.

First, undocumented workers do, in fact, contribute significantly to the economy, even if they are "off the books." Studies show that a large percentage of undocumented immigrants pay taxes through payroll taxes, sales taxes, and property taxes.

They often contribute more than they receive in benefits, including Social Security and Medicare, even though they cannot directly access these benefits.
dale74 · M
@Thinkerbell net annual cost actually means after you take out what they pay in other taxes so that would mean the gross cost would be almost 250 billion.
Thinkerbell · 41-45, F
@SatanBurger

"First, undocumented workers do, in fact, contribute significantly to the economy, even if they are "off the books." Studies show that a large percentage of undocumented immigrants pay taxes through payroll taxes, sales taxes, and property taxes."

"Off the books" means the illegals are paid in cash, and NO record is kept (except of course secret records by the people who employ them). In particular, NO payroll tax is collected and NO W2 form is sent to the IRS.

Yes, if they buy items in a regular store, then they do pay sales tax.
As for property tax, yes, that comes out of the rent they pay, but if 20 illegals are put up it a 1-family house, the contribution is minimal.