In Most States, Undocumented Immigrants Pay Higher Tax Rates Than Top 1%
In Most States, Undocumented Immigrants Pay Higher Tax Rates Than Top 1%
New study shows workers "often pay taxes that are dedicated to funding programs from which they are barred from participating because of their immigration status."
The study found that more than one-third of the taxes paid by undocumented immigrants fund government programs and services they are prohibited from using. In 2022, the most recent year for which data is available, they paid $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes, and $1.8 billion in unemployment insurance taxes.
Furthermore, the state and local tax rates paid by undocumented immigrants exceeded those of the 1% of highest-income households in 40 of 50 states.
Pretty sure that applied to documented immigrants and even native American residents...
Non American here. How are undocumented immigrants being taxed? I assumed pay would be more cash or under the table because they can’t get bank accounts. I thought that no bank account would mean no income tax, no property tax. Sales tax?
There are ways to get IDs which arent as stringent. Theres also the ITIN:
many use the Individual Taxpayer Identification Number, or ITIN, which allows immigrants without Social Security numbers to legally file tax returns and claim the income reported on their W-2’s to the IRS.
This way they dont need to give a SSN. Legally everyone is required to pay and it might be held against them when trying to gain citizenship. Showing they paid their taxes can work in their favor in showing good moral character. Theres nothing legally that would explicitly help them it might be good for their case.
Though there are many undocumented immigrants who are paid “under the table” for their work and do not pay taxes on their income, many others do pay in the hope that it will someday help them become citizens. Much of the evidence for this motivation is anecdotal, but various attempts at comprehensive immigration reform legislation over the last decade, including the “Gang of Eight” bill S.744, have included provisions like “good moral character” and “paying back taxes” as requirements for obtaining legalization. A provable history of paying taxes is seen as one way to show good faith, should such a bill ever pass.
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