Undocumented Immigrants Contribute $100 Billion in Annual Tax Revenue, Rep. Crockett Reports
Undocumented immigrants contribute significantly to the U.S. tax system, with Texas Congresswoman Jasmine Crockett highlighting their estimated $100 billion annual contribution, including Social Security payments they cannot access.
"These individuals pay into a system that they're shut out from, and it's time to acknowledge that contribution," states Crockett, focusing attention on the economic impact of undocumented workers rather than just their legal status.
Undocumented immigrants pay taxes through the Individual Taxpayer Identification Number (ITIN), issued by the IRS to those ineligible for Social Security numbers. Many use ITINs to file taxes legally, even when working under informal arrangements.
Social Security office phone support sign
Key findings about undocumented immigrant tax contributions:
- Over $11 billion annually in state and local taxes (Institute on Taxation and Economic Policy, 2020)
- Billions in payroll and Social Security taxes through the "earnings suspense file"
- Contributions to Social Security benefits they cannot access
- Federal tax payments through various channels
The Social Security Administration confirms receiving substantial payroll taxes from workers whose information doesn't match their records - often undocumented laborers. These funds strengthen the Social Security system despite contributors being unable to claim benefits.
While the exact $100 billion figure has sparked debate, evidence shows undocumented immigrants make substantial tax contributions while being excluded from many benefits. This reality challenges common misconceptions about immigration's economic impact and could influence future policy discussions.
Crockett's statement arrives amid ongoing immigration debates, potentially shifting focus toward acknowledging economic contributions rather than solely discussing border security measures.