Undocumented immigrants have been holding economy together, says data

Adolfo Suárez Madrid-Barajas Airport. Photo: Gerald Farinas.

While the current U.S. president rails against immigrants and fans the flames of fear, new data from the Institute on Taxation and Economic Policy (ITEP) exposes the real truth!

Undocumented immigrants are helping to hold this country together economically—even as reckless, xenophobic policies drive us toward financial disaster.

In 2022 alone, undocumented immigrants paid a staggering $96.7 billion in federal, state, and local taxes.

$59.4 billion went straight to the federal government—the same government that uses their hard-earned dollars to fund programs and policies that demonize them.

Another $37.3 billion bolstered state and local services.

Every single undocumented immigrant paid, on average, $8,889 in taxes last year.

That’s nearly $9 billion in extra revenue for every one million undocumented workers—money this president is more than happy to take while spitting venom at the people providing it.

Robbing immigrants to fund programs they can’t even use

Here’s the brutal irony!

More than a third of the taxes paid by undocumented immigrants go directly into Social Security, Medicare, and unemployment insurance—programs they are barred from using.

In 2022, $25.7 billion was paid into Social Security, $6.4 billion into Medicare, $1.8 billion into unemployment insurance.

Undocumented workers are literally propping up programs that U.S. citizens depend on—even as this administration treats them like criminals and burdens on society.

States rely on undocumented workers—but America has turned them into enemies

At the state and local level, undocumented immigrants are critical sources of revenue!

Nearly half (46%) of their taxes ($15.1 billion) come from sales and excise taxes—money paid every time they buy food, clothes, gas, or anything else.

Another 31% ($10.4 billion) comes from property taxes—paid directly or through rent.

21% ($7.0 billion) comes from personal and business income taxes.

Six states raked in over a billion dollars each thanks to undocumented workers!

California ($8.5B)

Texas ($4.9B)

New York ($3.1B)

Florida ($1.8B)

Illinois ($1.5B)

New Jersey ($1.3B)

These states’ budgets would collapse without the contribution of immigrants!

Meanwhile, the President’s anti-immigrant agenda is setting the stage for economic ruin at both the state and national level.

Paying more than billionaires—and getting demonized for it

It gets worse!

In 40 states, undocumented immigrants pay a higher effective state and local tax rate than the wealthiest 1 percent of households.

The richest Americans use loopholes and political favors to dodge taxes—while undocumented immigrants, working tough jobs for low wages, pay more of their income into the system.

And thanks to racist and punitive policies, many immigrants pay even more than similarly situated citizens—blocked from accessing tax credits, fearful of claiming refunds, and left navigating a system stacked against them.

Imagine the economic boom if they were integrated instead of deported

Instead of criminalizing workers who are already doing more than their fair share, the country could unlock an economic goldmine by offering them work authorization.

If current undocumented immigrants were granted permission to work legally, their tax contributions would skyrocket by $40.2 billion a year—to a total of $136.9 billion.

That’s $33.1 billion more for the federal government and $7.1 billion more for states and cities.

But instead of embracing this obvious opportunity for growth and stability, this president chooses to wage war on immigrants, kneecapping the very people who are keeping the wheels of the economy turning.

We’re betting on America’s future

Let’s be clear!

The policies coming from Washington today aren’t just cruel—they are economically suicidal.

At a time when the U.S. needs every dollar of revenue it can muster to strengthen public services, rebuild infrastructure, and support an aging population, the president is slamming the door on millions of willing taxpayers.

The truth is simple!

Undocumented immigrants make America stronger, richer, and more resilient.

The President’s xenophobic crusade is making us weaker, poorer, and more divided.

If we want a future worth living in, we need to stop treating immigrants like enemies and start recognizing them for what they are: essential workers doing work we don’t want to do, essential taxpayers adding to the benefits we will draw on when we’re old or disabled, and essential Americans in every way that truly matters.