A common myth that pervades American culture is the idea that unauthorized immigrants do not pay any taxes, so they should not benefit from taxpayer-funded projects and initiatives. However, according to the Texas Taxpayers and Research Association, a nonprofit that conducts research on tax policies and how they impact Texans, it is impossible for unauthorized immigrants to live in Texas and not pay taxes. The primary reason behind this fact is because Texas does not have a State income tax. As a result, its sales and property taxes are higher, and more products and services are taxed. Living and working in Texas inevitably results in the payment of taxes.
Another study from a Texas-based organization states that unauthorized immigrants contribute about $32.2 billion per year in taxes. This figure is based on a combination of sales taxes, property taxes, Social Security, and payroll deductions. Even if unauthorized immigrants use a fake Social Security number for employment purposes, their employers still must withhold Social Security and other payroll taxes from their paychecks. Despite the estimated $13 billion per year that these individuals pay into Social Security nationwide, the likelihood is that they never will be able to draw any benefits from Social Security.
Furthermore, as many as 4.4 million individuals with no legal immigration status regularly pay taxes using ITIN numbers. Although they cannot get Social Security numbers, the IRS estimates that in 2015, these individuals paid about $5.5 million in Medicare and payroll taxes, and a total of $23.6 billion in taxes. The Cato Institute estimates that about 75% of unauthorized immigrants file federal tax returns.
No matter the type of immigration issue you are facing, the skilled and knowledgeable immigration lawyers of Peek & Toland are here to assist you. We handle many different types of immigration cases every day and have the kind of strategic experience and skills that are necessary to reach the desired outcome. By calling our office as quickly as possible after your legal issue arises, we will have the best opportunity to resolve your immigration law case successfully.