President-elect Donald Trump’s plan to deport a large number of undocumented immigrants is becoming a reality. Stephen Miller, Trump’s choice for deputy chief of staff, has announced intentions for the administration to launch a massive deportation operation shortly after the Inauguration Day. Despite being targeted as scapegoats, undocumented immigrants play a significant role in contributing to federal, state, and local economies through their tax contributions.
Similar to legal residents, undocumented immigrants pay sales and excise taxes on various goods and services like groceries, gas, and utilities. They also contribute to property taxes, whether they own a home or rent, as landlords usually pass on a portion of the tax to renters. Additionally, they pay payroll taxes through automatic withholdings from their paychecks and income taxes by filing with an Individual Taxpayer Identification Number (ITIN) as per the IRS guidelines.
According to a detailed analysis by the Institute on Taxation and Economic Policy, the undocumented population paid nearly $97 billion in taxes in 2022, with over $54 billion directed to the federal government and more than $37 billion to states and localities. Losing tax revenue due to mass deportations could have significant negative impacts on the country, as every 1 million undocumented immigrants deported could result in a loss of $8.9 billion in tax revenue.
Undocumented immigrants support various community programs and services such as teacher salaries, infrastructure maintenance, and social safety net programs like Social Security and Medicare, without being able to access the benefits themselves. At the state level, their tax contributions are primarily through sales and excise taxes, property taxes, and personal and business income taxes. Despite facing legal restrictions, undocumented immigrants contribute proportionally more to state and local taxes compared to the wealthiest residents.
The expulsion of undocumented immigrants on a large scale would not only be expensive but also detrimental to families, communities, and the overall economy. Removing a significant portion of workers from sectors like construction and food industries could lead to increased costs for housing and food for all Americans.
The immigration issue in the U.S. is multifaceted and requires a more nuanced approach that considers the essential role undocumented immigrants play in communities and economies. Instead of harsh measures, long-term solutions should prioritize human dignity, compassion, and factual understanding.
Guzman serves as a senior policy analyst at the Institute on Taxation and Economic Policy. © 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Stay up-to-date with the latest news, weather, sports, and streaming video by visiting The Hill.
