A new study reveals the substantial economic contributions of undocumented immigrants, just as the Biden administration moves to protect hundreds of thousands of families through a new immigration policy.
Key Findings
- Undocumented immigrants paid $96.7 billion in taxes in 2022
- $59.4 billion went to federal taxes, $37.3 billion to state and local taxes
- Average tax contribution: $8,889 per person
- In 40 states, undocumented immigrants pay higher effective tax rates than the top 1% of taxpayers
These contributions could increase under Biden’s expansion of the “parole in place” program, set to launch August 19, 2024. The policy will offer temporary legal status and work permits to eligible undocumented spouses of U.S. citizens who’ve been in the country for at least 10 years.
The White House estimates this could affect about 500,000 families. ITEP projects that full work authorization for all undocumented immigrants could boost tax contributions by an additional $40.2 billion annually.
The Bottom Line
The intersection of this new policy with the ITEP study’s findings provides a unique opportunity to observe how changes in immigration policy can directly affect economic contributions and social integration of undocumented immigrants in the United States.
As the August 19 implementation date approaches, economists will monitor the policy closely to measure its actual impact on tax revenues and overall economic growth and Boundless will provide resources for the application process. Get started now.
Learn the details of the Parole in Place program here.