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Fact check: What is the total tax revenue generated by undocumented immigrants in the US?
1. Summary of the results
Based on the analyses provided, undocumented immigrants contribute substantial tax revenue to the United States, with the most recent data showing significant year-over-year contributions:
- 2023: Undocumented immigrants paid $89.8 billion in total taxes, with $55.8 billion going to federal taxes and $33.9 billion to state and local taxes [1] [2] [3]
- 2022: The tax contribution was $96.7 billion in total, with $59.4 billion paid to the federal government and $37.3 billion to state and local governments [4]
The data shows these immigrants contribute through multiple tax mechanisms including sales taxes, income taxes, and property taxes [5]. Notably, one analysis indicates that if undocumented immigrants had work authorization, they would contribute an additional $40.2 billion per year beyond their current contributions [6].
2. Missing context/alternative viewpoints
The original question lacks several important contextual elements that emerge from the analyses:
- Tax compliance mechanisms: The analyses reveal that undocumented immigrants pay taxes through various means, including Individual Taxpayer Identification Numbers (ITINs) and automatic deductions from paychecks, contradicting common assumptions about tax avoidance [1] [2]
- Potential for increased revenue: The Institute on Taxation and Economic Policy found that providing work authorization could generate an additional $40.2 billion annually in tax revenue, representing a significant untapped revenue source [6]
- Fear-based compliance issues: Recent data indicates that fear of filing taxes has risen among undocumented immigrants, potentially reducing actual tax collection compared to what these figures represent [3]
- Enforcement perspective: The analyses include examples of tax enforcement actions, such as a case where restaurant executives were indicted for underreporting at least $400,000 in Social Security and Medicare taxes related to undocumented workers [7]
Organizations like the American Immigration Council and the Institute on Taxation and Economic Policy benefit from highlighting these positive economic contributions as it supports their advocacy for comprehensive immigration reform and expanded work authorization programs.
3. Potential misinformation/bias in the original statement
The original question itself is neutral and factual, seeking specific data rather than making claims. However, the framing could potentially lead to incomplete understanding:
- Temporal specificity: The question asks for "total tax revenue" without specifying a timeframe, when the actual figures vary significantly by year and data source
- Missing broader economic context: The question focuses solely on tax contributions without addressing the broader economic impact, including both costs and benefits of undocumented immigration
- Definitional clarity: The question doesn't specify whether it seeks gross contributions or net fiscal impact, which are substantially different metrics
The analyses consistently show that multiple reputable organizations including the Institute on Taxation and Economic Policy and the American Immigration Council have conducted studies showing substantial tax contributions, suggesting the data is well-documented rather than speculative or biased.