Undocumented Migrants Pay $2 Billion in Tax

April 28, 2017 Taxation in USA

Tax returns in the USAWASHINGTON D.C. – Undocumented migrants in the USA are paying out more than their fair share in income tax, according to a new study.

In a report released earlier this week the US think tank the Institute on Taxation and Economic Policy (ITEP) showed that some undocumented immigrants in the USA pay a total of USD 2 billion in state and local taxes per year.

The new study revolves around the taxes paid by individuals who fall within the scope of the DACA program, which allows some illegal migrants to live in the country, if they were brought to the USA at a young age.

Currently approximately 1.3 million undocumented migrants who are enrolled in the DACA system paid income taxes.

The young taxpayers are estimated to have paid approximately 8.9 percent of their income in taxes, comparable to the middle 20 percent of earners in the USA who paid out 9.4 percent of their incomes, but much more than the top 1 percent of earns who paid out only 5.4 percent of their earnings.

It is estimated further that if the DACA program experienced enrolment from all individuals who are eligible to enrol, then the total revenues raised could go up by as much as USD 425 million per year.