Immigration News 2015: All US Undocumented Immigrants Could Contribute $2.2 Billion in Taxes, Per Year
The 11.4 million undocumented immigrants living in the U.S. provide billions of dollars for local, state and federal taxes, based on a new study.
And according to a nonprofit organization, tax contributions by undocumented immigrants would increase if immigration reform policies were approved.
The Institute on Taxation and Economic Policy (ITEP), a nonprofit and nonpartisan organization about tax policy issues, found that if all 11.4 million undocumented immigrants received lawful permanent residency in the U.S., then state and local tax contributions would increase by approximately $2.2 billion per year. Based on 2012 data, ITEP stated undocumented immigrants have already contributed "significantly" to local and state taxes by providing an estimated $11.4 billion.
With President Barack Obama's 2012 and 2014 immigration executive actions, which together would allow nearly 5.2 million eligible undocumented immigrants a temporary stay in the country, $845 million in state and local taxes would accumulate from the deferred action recipients--alone--per year.
The ITEP's April report titled "Undocumented Immigrants' State and Local Tax Contributions," authored by Matthew Gardner, Sebastian Johnson and Meg Wiehe, states that many undocumented immigrants have filed income tax returns through the Individual Tax Identification Numbers (ITINs), while others -- who do not file their taxes -- still have taxes deducted from their paychecks.
If the executive actions were to be fully implemented, 45 percent of the total undocumented immigrant population in the U.S. would be eligible for either deferred action programs.
"The numbers alone make a compelling case for reform," said Gardner, executive director of ITEP. "This analysis shows that undocumented immigrants already are paying billions in taxes to state and local governments, and if they are allowed to work in the country legally, their state and local tax contributions would considerably increase."
Obama's 2012 executive action created the Deferred Action for Childhood Arrivals (DACA), while his 2014 executive actions expanded DACA and established the Deferred Action for Parental Accountability (DAPA). Following Obama's executive action announcement, 26 U.S. states formed a coalition to block implementation of the new DACA and DAPA. The 26 states believe Obama overreached his executive privileges and the deferred action programs would negatively affect their respective economies.
A U.S. district court judge in Texas would agree with the plaintiffs and temporarily blocked the deferred action programs on Feb. 16. The U.S. Department of Justice (DOJ) have filed an appeal and a hearing is set for April 17 to lift the temporary injunction.
As Latin Post reported, immigrant rights advocates have traveled for the April 17 Fifth Circuit Court of Appeals hearing in hopes the temporary injunction would be rejected. The Justice Department said the district court judge -- Andrew Hanen -- violated other states who have supported the deferred action programs. The department is seeking for the temporary injunction to be reversed, or at least to maintain the temporary injunction for the 26 states participating in the lawsuit.
ITEP's report comes as the White House Task Force released a strategic action plan to improve immigrant and refugee integration in local U.S. communities. The task force report, titled, "Strengthening Communities By Welcoming All Residents: A Federal Strategic Action Plan on Immigrant and Refugee Integration," includes details from numerous U.S. federal departments and agencies with goals and recommendations on strengthening or creating new pathways to naturalization while promoting civic engagement.
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