Virtually everyone who wants the deportation of undocumented people stepped up cites the tax impact of these people as one reason, saying they resent paying for government services used by such people, such as free public education.
But are they correct?
Study after study has concluded that no, they are not. Viewing "tax" as including all involuntary payments made to government, these people pay an estimated $12 billion in Social Security alone while receiving an estimated $1 billion in tax benefits, annually.
https://www.theatlantic.com/business...-taxes/499604/The Social Security system has grown increasingly reliant on this stream of revenue, particularly as aging Baby Boomers start to retire. Stephen Goss, the chief actuary of the Social Security Administration, estimates that about 1.8 million immigrants were working with fake or stolen Social Security cards in 2010, and he expects that number to reach 3.4 million by 2040. He calculates that undocumented immigrants paid $13 billion into the retirement trust fund that year, and only got about $1 billion in benefits. “We estimate that earnings by unauthorized immigrants result in a net positive effect on Social Security financial status generally, and that this effect contributed roughly $12 billion to the cash flow of the program for 2010,” Gross concluded in a 2013 review of the impact of undocumented immigrants on Social Security.
How much do undocumented immigrants pay in taxes? | PunditFactIn a 2014 Vice News piece, the Social Security Administration’s chief actuary Stephen C. Goss affirmed the $12 billion contribution.
Social Security Administration analysts said "a relatively small portion" of those who could draw benefits do so.
An analysis by the conservative Heritage Foundation came up with a lower figure: $7 billion, excluding payments from employers.
5 immigration myths debunked - Nov. 20, 2014Undocumented immigrants are already U.S. taxpayers.
Collectively, they paid an estimated $10.6 billion to state and local taxes in 2010, according to the Institute on Taxation and Economic Policy (ITEP), a research organization that works on tax policy issues. Contributions varied by state. In Montana they contributed $2 million. In California, more than $2.2 billion. On average they pay about 6.4% of their income in state and local taxes, ITEP said.
A 2007 Congressional Budget Office (CBO) report on the impact of undocumented immigrants on the budgets of local and state governments cited IRS figures showing that 50% to 75% of the about 11 million unauthorized U.S. immigrants file and pay income taxes each year.
A 2013 CBO analysis of the failed bipartisan bill introduced by the so-called "gang of 8" that would have created a path to legal status for many undocumented immigrants found that increasing legal immigration would increase government spending on refundable tax credits, Medicaid and health insurance subsidies, among other federal benefits. But it would also create even more tax revenue by way of income and payroll taxes. That could reduce deficits by $175 billion over the first 10 years and by at least $700 billion in the second decade.
ITEP estimates that allowing certain immigrants to stay in the country and work legally would boost state and local tax contributions by $2 billion a year.
Unclaimed payments to Social Security are protecting the solvency of that program in the face of enormous new demands made by Baby Boomers.
5 immigration myths debunked - Nov. 20, 2014The truth is that undocumented immigrants contribute more in payroll taxes than they will ever consume in public benefits.
Take Social Security. According to the Social Security Administration (SSA), unauthorized immigrants -- who are not eligible to receive Social Security benefits -- have paid an eye-popping $100 billion into the fund over the past decade.
"They are paying an estimated $15 billion a year into Social Security with no intention of ever collecting benefits," Stephen Goss, chief actuary of the SSA told CNNMoney. "Without the estimated 3.1 million undocumented immigrants paying into the system, Social Security would have entered persistent shortfall of tax revenue to cover payouts starting in 2009," he said.
As the baby boom generation ages and retires, immigrant workers are key to shoring up Social Security and counteracting the effects of the decline in U.S.-born workers paying into the system, Goss said.
Without immigrants, the Social Security Board of Trustees projects that the system will no longer be able to pay the full promised benefits by 2037.
Undocumented people pay rent, just as any citizen does, and the taxes on their property are the primary source of funding for local schools, The federal dollars for education are distributed based on the number of students, without regard to the citizenship status of any of them. Obviously, undocumented people are less likely than citizens to receive welfare, Medicaid or food stamps.
See also:Non-citizen immigrant adults and children are about 25% less likely to be signed up for Medicaid than their poor native-born equivalents and are also 37% less likely to receive food stamps, according to a 2013 study by the Cato Institute.
5 immigration myths debunked - Nov. 20, 2014https://www.usnews.com/news/articles...lions-in-taxes
Undocumented Immigrants Pay More in Taxes Than They Receive in Benefits
This is not the only POV; a certain amount of guessing is necessary, and there are other pundits who feel the paid in/paid out balance is definately negative, although they are in the minority and not as well-respected. And tax is not the whole economic picture, even if anyone wants to choose his POV on undocumented people based only on dollars and sense. You'd also want to consider the enormous wealth they build for Americans by their HUGELY undervalued contributions to agriculture, health care, construction and other business sectors.
Nevertheless, the leading economists view undocumented people in America as a boon to our government, by a factor of 10+.