Federal tax payments by illegal workers

Amelia’s Translation and Tax Services in Greeley CO was raided by local law enforcement people in search of illegal workers. They expected, correctly, that many of them dutifully files tax returns using fake social security numbers. (The dollar value of unallocable payments due to wrong social security numbers has been said to be $8 billion a year.)
Texas, Oregon and Iowa studies, compiled by the Immigration Policy Center, have estimated the amount of tax paying by illegal workers, and compared those amounts to the estimated costs of delivering public benefits to them and their households. I have previously posted on a study for New Jersey, and on the Texas study cited below.
from the The Immigration Policy Center
As the debate over illegal immigration continues to rage, some pundits and policymakers are claiming that unauthorized immigrants do not pay taxes and rely heavily on government benefits. Neither of these claims is borne out by the facts. Undocumented men have work force participation rates that are higher than other workers, and all undocumented immigrants are ineligible for most government services, but pay taxes as workers, consumers, and residents. (November 2007)
A 2006 study by the Texas State Comptroller found that “the absence of the estimated 1.4 million undocumented immigrants in Texas in fiscal 2005 would have been a loss to our gross state product of $17.7 billion. Undocumented immigrants produced $1.58 billion in state revenues, which exceeded the $1.16 billion in state services they received.”
Similarly, a 2007 study by the Oregon Center for Public Policy estimated that undocumented immigrants in Oregon pay state income, excise, and property taxes, as well as federal Social Security and Medicare taxes, which “total about $134 million to $187 million annually.”
In addition, “taxes paid by Oregon employers on behalf of undocumented workers total about $97 million to $136 million annually.” As the report goes on to note, undocumented workers are ineligible for the Oregon Health Plan, food stamps, and temporary cash assistance.
Likewise, a 2007 report from the Iowa Policy Project concluded that “undocumented immigrants pay an estimated aggregate amount of $40 million to $62 million in state taxes each year.” Moreover, “undocumented immigrants working on the books in Iowa and their employers also contribute annually an estimated $50 million to $77.8 million in federal Social Security and Medicare taxes from which they will never benefit. Rather than draining state resources, undocumented immigrants are in some cases subsidizing services that only documented residents can access.”

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