Stop saying “Illegal Immigrants Don’t Pay Taxes!”
// March 29th, 2008 // Immigration
…Undocumented workers are filing more taxes than ever before says the Internal Revenue Service.
We are not talking about regressive sales taxes. We aren't even speaking about how undocumented workers use fake SSNs and pay more than $7 billion into Social Security annually, thus keeping it afloat. Here, we are documenting how, along with American citizens each April, our 'illegal immigrant' parents file taxes with the IRS by using Taxpayer Identification Numbers.
The IRS began issuing these ITINs in 1996 to foreigners who did not qualify for Social Security numbers but earned income legally in the United States. Since then, more than 10 million of these numbers have been issued and although precise numbers aren't available, most ITINs used to file taxes belong to 'illegal immigrants,' according to a 2004 report by the Government Accountability Office. And the number of ITINs issued increases each year as do the tax returns filed using those ITINs.
The mainstream media hardly advertises this fact and the anti-immigration lobby plays like a broken record over and over that '"illegals are costing American taxpayers…" and "illegals do not pay taxes." When Congress was debating an economic stimulus package earlier in the year, Tom Tancredo was booming on about how the package would give rebates to 'resident aliens.' What he and the mainstream media failed to mention was that the rebates would be given since these 'resident aliens' were filing taxes using their own ITINs. We understand that it is hard to be so stoicly against those damned 'illegals' when there are stories about them following the law, filing their taxes and contributing to America but face the facts.
See this story, this one and even this. Not only do undocumented workers pay taxes, they probably end up paying more than average Americans because 1) they do not want to risk audit and draw attention to themselves and 2) they do not qualify for rebates and breaks like Earned Income Credit.
So how much have 'illegal immigrants' paid in taxes to the IRS?
No one knows for sure but between 1996 and 2003, nearly $50 billion was paid into the treasury by 10 million people assigned tax identification numbers. "In North Carolina, a UNC-Chapel Hill study estimated that Hispanic residents paid $145 million in state income taxes in 2004, and another $86 million in small business taxes." (News & Observer, The (Raleigh, NC); 04/14/2007) Check out this report at Washington Times that speaks of a study showing immigrants in the Washington area pay the fair share of the tax burden.
Now I hear that only a minority of 'illegals' file their tax returns. Of course, not all 12 million 'illegals' file their taxes and I am certainly not making that claim. More than half are probably ineligible since they are either children, supported by their partners/spouses, working with fake social security numbers, don't earn enough or simply too scared to leave a paper trail. However, as 'illegal immigrants' adjust to life in America, find resources to help them understand that the IRS and CIS are not in bed with each other, and that ITINs are useful for creating a credit history and obtaining bank accounts, they surely find encouragement to file tax returns. Besides, it does show good moral character and would help with 'proof of presence' when it comes to eligibility for legal residence and citizenship. See more reasons for filing taxes if you are undocumented here.
Do I file taxes? No, I am an unpaid intern, blogger and janitor. But my mother is currently downstairs foraging through all her expense receipts and paycheck stubs from the past year to meet the April deadline. I asked her last week how much she paid in taxes and she took out a calculator, punched in some numbers, and gave me an answer that left my mouth gaping wide open: $16000, in business and property taxes.
Alright, do not ever claim that you are subsidizing my college education, my health care or any other social service. My parents are probably paying a lofty sum into providing healthcare and K-14 education for American citizens in our county of residence while paying out of the pocket for my health and education expenses.
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7 Responses to “Stop saying “Illegal Immigrants Don’t Pay Taxes!””
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The Mexicans don’t even pay enough taxes to offset the expenses to the taxpayers for having them here.
They are not neccassary in any way.
The people who employ them need to pay them full special out of country benefits, so they can have their medical paid for. this would also include SS benefits, so that they can pay as you go, like SS is designed to do, but it needs to be at a much higher rate to outsiders.
You either come here helping our economy, not just some cheap businessmen, or you work it out with your employer.
We don’t need you here either way, and no you are not a positive tax based asset, but a long conundrum of expenses that benefit nobody except a handful of silly businessmen.
what the fuck are talking about illegal immigrants do pay thier taxes to the IRS. maybe they will pay thier taxes if they didnt fear about getting sent back to Mexico and if they did get pay a good amount of money. so dont ever say that they dont pay taxes.
Hey DinTN, Thanks for stopping by and voicing your concerns. You bring up some interesting points that I think we can find a solution to if we implement a guest worker program. Think about it — there would be less need of identity theft, more health, safety and labor regulations (if permitted), and of course, we could actually keep better tabs on tax evaders. How’s that proposal for you?
Half of the ‘illegal immigrants’ here did come through proper channels, but the proper channels are so broken, retarded and out-of-date, that some even through non fault of their own, were rendered ‘illegal.’
Sure there are criminal aliens as there are criminal Americans, and no one is defending either group in this post. Stick to the topic.
Why do you only rail against Democrats? I am not a Democrat so your comments don’t bother me, but if you truly examine the political parties of the U.S., Republicans pander to the ‘illegal immigration’ advocates as much as Democrats, and for the reason you mentioned – CHEAP LABOR for their corporations. Historically, it was the Democrats through AFL-CIO labor unions that were more anti-illegal immigration. Of course, I won’t test your knowledge of history given that you are so clueless about the ongoing happenings in the status quo.
Actually, following the laws of economics given that I do have an MA in political economy, open borders would make workers free to move around and thereby more competitive as corporations won’t be able to escape to ‘cheap labor.’ So a totally open borders policy is more economically beneficial to the people. You should run that by the neo-liberals.
The whole tax process is a mess. I can’t figure out how we can collect taxes from illegal immigrants and then tell them they’re not entitled to anything? If they’re not entitled to anything why are we taking their money in the first place? It just seems hypocritical to me, either we allow them to pay taxes and offer them the same benefits (assuming they’re paying their taxes) or we don’t accept a dime of their money. It just seems to be the whole situation with illegal immigration is full of hypocrisy and denial. We give children of illegal immigrants credibility by accepting them into our schools, we give the adults credibility by accepting their tax payment and at the same time we lampoon them for being here. All i want is with illegal immigration is clarity. Lets accept them or deport them and stop this limbo of hypocrisy.
If you are here illegal, you shouldn’t be subject to any benefits that the government has, including health care, food stamps and rebate checks. But you are more than welcome to go back to your country and pay all the taxes that you want.
Hello Rick, Thank you for your kind comments. I think you meant “if you are here illegally….”
Would you mind showing me some evidence that ‘illegal immigrants’ are getting food stamps and rebate checks, because last I checked, they are not. So you are trying to say if people are paying their taxes to the American government, they don’t have a right to get services for their tax money just because they are out-of-status? The only thing I am contending in this article is that American citizen taxpayers should 1. Stop saying that illegals don’t pay taxes and 2. Stop saying that we are a burden to your social services because the last two paragraphs is about how my family probably supports more American citizens than vice-versa.