U.S. Tax Revenue Could Grow by $2.1B if Undocumented Immigrants Become Citizens: Study
The Latino population plays a huge part in the U.S. economy as a new report from the Institute on Taxation and Economic Policy revealed that the undocumented immigrants pay up to $11.6 billion in taxes annually.
Meg Wiehe, State Tax Policy Director of the ITEP, explained in a statement that the study is especially relevant nowadays amid the ongoing discussion on immigration and its economic implications. The executive pointed out that the recently collected data proves that the significance of the undocumented immigrants in the economy is not just limited to labor, but also in their tax contributions.
Wiehe added, "With immigration policy playing a key role in state and national debates and President Obama's 2014 executive action facing review by the Supreme Court, accurate information about the tax contributions of undocumented immigrants is needed now more than ever."
According to a report from teleSUR, undocumented immigrants make up less than 3 percent of the entire U.S. population. However, ITEP revealed that the average undocumented immigrant shells out about $1,050 in taxes annually or about 8 percent of their income. This is more than the 5.4 percent that's paid by the top 1 percent of the country
In the event that Obama's executive acts were upheld by the Supreme Court, the increase in tax revenues would reach around $805 million, the teleSUR report said. Furthermore, if the estimated 11 million undocumented immigrants in the United States were legalized and granted citizenship through the comprehensive immigration reform, there would be an additional $2.1 billion in taxes yearly.
The states with the biggest immigrant populations would consequently benefit the most, specifically California, Texas, New York and Florida.
Apart from being a huge chunk of the tax revenue, Latino-owned businesses are also a big part of the demographic's contribution to the economy, according to a report from Nebraska TV.
The Center for Public Affairs Research in Omaha revealed that these businesses are paying over $17 million in taxes across the state. They are also credited with creating 5,149 jobs statewide and 387 jobs in central Nebraska as of 2012.
"Without this population, there would be fewer jobs or fewer jobs filled and would be harder for employers to find the workers they need," Ken Lemke, an economist with Nebraska Public Power District, said. "In some instances they would have to significantly raise wages, but that only goes so far."
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