Paul L. Caron
Dean



Friday, February 26, 2016

The Tax Implications Of Immigration Reform: Two Perspectives

Institution on Taxation and Economic Policy, Undocumented Immigrants' State & Local Tax Contributions:

An updated 50-state study ...  finds that undocumented immigrants’ tax contributions would increase significantly under the Obama Administration’s executive actions and even more substantially under comprehensive immigration reform granting  all undocumented immigrants lawful permanent residence.

The 11 million undocumented immigrants currently living in the United States collectively paid $11.64 billion in state and local taxes.  ITEP’s analysis finds their combined nationwide state and local tax contributions would increase by $805 million under full implementation of the administration’s 2012 and 2014 executive actions and by $2.1 billion under comprehensive immigration reform.

Federation for American Immigration Reform, The Fiscal Burden of Illegal Immigration on United States Taxpayers:

This report estimates the annual costs of illegal immigration at the federal, state and local level to be about $113 billion; nearly $29 billion at the federal level and $84 billion at the state and local level. The study also estimates tax collections from illegal alien workers, both those in the above-ground economy and those in the underground economy. Those receipts do not come close to the level of expenditures and, in any case, are misleading as an offset because over time unemployed and underemployed U.S. workers would replace illegal alien workers. 

https://taxprof.typepad.com/taxprof_blog/2016/02/the-tax-implications-of-immigration-reform-two-perspectives.html

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