A new report from the Institute on Taxation and Economic Policy found that most illegal immigrants in the U.S. pay state and local taxes just like any other American citizen. According to the report, at least 50 percent of the undocumented immigrant households file income tax returns using their Individual Tax Identification Numbers.
Researchers estimate that illegal immigrants pay about 8 percent of their income in taxes, both local and state. Taking into account the roughly 12 million undocumented residents, the result is $11.64 billion in state and local taxes annually.
Roughly $6.9 billion comes from sales and excise taxes, other $3.6 billion from property taxes, whereas $1.1 billion comes from paying personal income taxes. If all of the illegal immigrants received legal status and therefore worked with documents, their contribution in taxes would increase by 2.1 billion annually, at least. Legal status usually leads to better work and higher wages so their financial contribution would probably increase even more than that.
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