By: The opinion Posted Mar 26, 2023, 12:44 pm EDT
The main rhetoric of anti-immigrant groups is that they don’t pay taxes, but official data reveals just the opposite: pay billions of dollarss, but do not receive any federal benefits.
“These contributions play a vital role in the financing and sustainability of public programs and services of the United States”, indicates the American Immigration Council.
The report indicates that undocumented immigrants make “significant” contributions to the US tax system, as they pay sales, income and property taxes.
“Only in 2021, these households contributed $30.8 billion in total taxesincluding $18.6 billion in federal income taxes and $12.2 billion in state and local taxes,” says the report using data from the American Community Survey.
Stresses that at least 50% of these immigrant households file tax returns on income, that is, for work, using the Individual Identification Number (ITIN), according to the Institute for Tax and Economic Policy.
However, these people cannot apply for any social benefits, since they do not have a valid Social Security number.
“They are not eligible for Social Security benefits or the Earned Income Tax Credit (EITC),” the report highlights. “It’s critical to remember that ITIN holders pay taxes on these and other programs, like Medicare and Medicaid, that Americans use every day.”
This number allows anyone to report their taxes to the Internal Revenue Service (IRS) and, in addition to being undocumented, other immigrants can obtain the ITIN: Lawful permanent residents, aliens working in the US, and the immigrant spouses of US citizens, among others.
“In 2015, 4.4 million ITIN applicants paid more than $5.5 billion in payroll and Medicare taxes and $23.6 billion in total taxes,” the report said, based on IRS data.
However, It is important for undocumented immigrants to pay taxes through the ITINsince if they eventually obtain an immigration benefit, such as a Green Card, they could be eligible for Social Security.
“Income reported with an ITIN may count toward your eligibility. However, if they never become eligible, they cannot collect their contributions”, the report acknowledges.
Another fact that the analysis highlights is that many undocumented immigrants have taxes deducted from their paychecks, “even if they do not file income tax returns.”
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