Luminus Hails ITEP Report on Tax Payments by Undocumented Immigrants

The Institute on Taxation and Economic Policy (ITEP) has released a report on the amount of taxes paid by undocumented immigrants in the United States.

Almost $100 billion in taxes was paid by undocumented people in 2022. $59.4 billion to the federal government and the remaining $37.3 billion to state and local governments. That $59.4 billion is sufficient to cover the budgets of NASA, the National Science Foundation, and the Federal Communications Commission combined, with enough left over to cover the Securities & Exchange Commission and the Executive Office of the President. (Budget sizes from USASpending.gov)

Especially important to note, “more than a third of the tax dollars paid by undocumented immigrants go toward payroll taxes dedicated to funding programs that these workers are barred from accessing. Undocumented immigrants paid $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes, and $1.8 billion in unemployment insurance taxes in 2022.”

The report makes projections as to the tax benefits for states if undocumented immigrants were to be granted legal status. In Maryland, the state could potentially net an additional $262 million, significant resources to meet the challenges facing our communities.

Finally, “In total, the federal tax contribution of undocumented immigrants amounted to $59.4 billion in 2022 while the state and local tax contribution stood at $37.3 billion. These figures make clear that immigration policy choices have substantial implications for public revenue at all levels of government.”

We commend ITEP for their commitment to this research.