From Brad Bernstein, Esq. on Facebook
There is a myth in America that undocumented immigrants don’t pay taxes or that they “live off the system.”
The truth is the exact opposite, and the numbers are not even close.
This fact is also backed up by THE CATO INSTITUTE
According to the most recent nationwide data from the Institute on Taxation and Economic Policy (ITEP), undocumented immigrants paid $96.7 billion in taxes in 2022 alone.
That includes:
• $25.7 billion in Social Security taxes These are payroll taxes deducted from undocumented workers’ paychecks. The Social Security Administration has repeatedly acknowledged that undocumented workers pay far more into the system than they ever take out, because they cannot collect benefits without legal immigration status. Their contributions help fund current retirees and keep the trust fund solvent.
• $6.4 billion in Medicare taxes This money supports the Medicare Hospital Insurance Trust Fund. Again, undocumented immigrants cannot access Medicare unless they later obtain a green card or citizenship. So they pay in, but cannot get the benefits they are funding.
• $1.8 billion in unemployment insurance taxes Most unemployment insurance taxes are paid by employers, but undocumented workers are still the reason the contributions are made. Yet undocumented workers are ineligible to collect unemployment benefits in almost all situations.
• Tens of billions more in federal, state, and local taxes Undocumented immigrants pay income taxes (many file using an IRS-issued ITIN), sales taxes, property taxes (directly or through rent), and excise taxes. ITEP estimates undocumented immigrants pay thousands of dollars per year per household in taxes, similar to other taxpayers in the same income ranges. Now the part people don’t know: Undocumented immigrants are barred from almost all major federal benefit programs.
They cannot receive:
• Social Security
• Medicare
• Medicaid (federal portion)
• SNAP / food stamps
• TANF / cash assistance
• Federal unemployment benefits
• Affordable Care Act subsidies
• Federal housing assistance (Section 8, etc.)
So when someone says undocumented immigrants “drain the system,” they’re actually arguing to remove the people who are financially keeping it alive. Their tax contributions go to everyone else’s benefits, not to their own. This is why the Congressional Budget Office (CBO) reported that immigration — including undocumented immigration — is projected to reduce the federal deficit by nearly $900 billion over the next decade. Immigrants increase tax revenue far more than the government spends on them.
Bottom line:
• Undocumented immigrants pay billions in taxes every year.
• They cannot access the benefits their taxes support.
• Their contributions help fund Social Security, Medicare, and reduce the federal deficit.
• Removing them would hurt American taxpayers, not help them. These are facts backed by data, not political opinions.