Commonwealth Institute Study: Undocumented Workers Pay $300 Million+ in Taxes

By: Lowell
Published On: 2/14/2008 9:40:13 PM

A new study by the Commonwealth Institute debunks one major myth of the anti-illegal-immigrant movement, that undocumented workers supposedly don't pay taxes.  To the contrary:

The undocumented population contributes to the Virginia economy in substantial ways. They provide critical labor to certain industries, including construction, manufacturing, and leisure and hospitality, and the $2.6 billion to $3.1 billion in income earned by this group is used to purchase goods and services in the Commonwealth.  Furthermore, the taxes paid by the undocumented population total between $260 million and $311 million. When the payroll taxes of employers of undocumented immigrants working on the books are considered, these numbers increase to between $379 million and $453 million.

So, there you have it.  Undocumented workers don't just consume services, they also pay taxes and contribute to Virginia's economy in many other ways. Yet, as the Commonwealth Institute explains, "Very rarely do the economic contributions of these individuals and families enter the conversation."  That's unfortunate, because "In order to develop policy solutions that promote prosperity for the Commonwealth and all of its residents, it is vital that the discussion flows from data that factors both inputs and outputs."  Perhaps this study will help in that regard.

Comments



This is true, as anyone with undocumented clients can attest (Catzmaw - 2/14/2008 9:55:46 PM)
I'm not a fan of people sneaking in under the radar, but the canard that they don't contribute to the tax base is completely inaccurate.  I've represented quite a few undocumented immigrants over the years, including in child support cases, and my experience tells me that many are paying taxes.  Some get paid under the table, but that's also true for good ole Muricans.  A lot of the ones I've dealt with do not file tax returns for fear of coming to the notice of the authorities.

There is a caveat:  some undocumented workers are using other peoples' social security numbers.  This is a huge problem for the true owners of the numbers who may find themselves being contacted by the IRS with a demand for explanation of why they didn't file returns for all their income.  For poorer people who may be in line for benefits this is a serious problem because the earnings render them ineligible for assistance or may cause the state to contact them to demand repayment of benefits.