Wednesday, April 18, 2012

Illegal Immigrants Pay Their Fair Share Of Taxes In The U.S.

Tax chart by state (ITEP)

Click on image to enlarge

U.S. federal tax filing date was April 17 and undocumented immigrants in the U.S. are expected to once again pay their fair share of taxes. Billions of unclaimed tax refunds by undocumented immigrants still unaccounted for by the IRS or the Congressional Budget Office.

By H. Nelson Goodson
April 18, 2012

Kansas City, Missouri - On Tuesday, the last filing date for tax year 2011 expired unless a federal tax extension was filed by those taxpayers seeking more time to prepare and report taxable earnings in the U.S. Groups, organizations, public elected officials from local to the federal level and individuals considered anti-immigrant still contemplate that unauthorized immigrants in the country don't pay their fair share of federal, state and local taxes. A study was published last year indicating that unauthorized immigrants do pay their fair of income taxes, including sale taxes and property taxes, even if they pay rent.
The Immigration Policy Center reported that a study by the Institute for Taxation and Economic Policy (ITEP) showed undocumented immigrants who were the main income wage earners and head of households did in fact paid their fair share of state and local taxes in 2010.
In 2010, the ITEP study showed that undocumented immigrants paid $8.4 billion in sales taxes, $1.6 billion in property taxes, and $1.2 billion in personal income taxes. (ITEP study States that gained the most revenue from undocumented immigrants (UI's) paying taxes were California ($2.7 billion), Texas ($1.6 billion), Florida ($807 million), New York ($662 million), and Illinois ($499 million). They were followed by Georgia ($456 million), New Jersey ($446 million), Arizona ($433 million), and in Wisconsin ($94.4 million).
In Wisconsin, UI's paid $21,7 million in personal income, $6.1 million in property taxes and $6.5 million in sale taxes in 2010, according to the ITEP study.
The Wisconsin Hispanic population in the state grew by 74% 336,056, an increase of 143,135 from 2000. Hispanics now account for 5.9 percent of Wisconsin's total population and more than 3,000 Hispanic owned businesses contribute more than $800 million in annual sales.
A City of Milwaukee in Wisconsin economic study reported that the South side households in the predominately Latino community located inside Postal Zip Code 53204 in Milwaukee spend more than $91 million annually in retail goods, according to the 2006 Department of City Development statistics.
The 2010 U.S. Census reported an estimated 11.2 million of undocumented immigrants residing inside the U.S. border. Head of households who were considered undocumented earned an estimated income average of $36,000 per year.
The U.S. Census also reported that more than 50 million, 16.3% of U.S. Hispanics resided in the country in 2010.
The Internal Revenue Service (IRS), Social Security Department, Congressional Budget Office and state revenue departments continue to exclude accurate tax revenue generated by undocumented immigrants since the Amnesty of 1986 was passed.
Also a large number of undocumented immigrants don't even file tax returns, thus providing tens of billions of unclaimed tax dollars to the U.S. government. It's for certain to admit, that unclaimed tax dollars from unauthorized immigrants has kept the U.S. afloat economically through the years avoiding a depression and a global economic disaster.
The only official yearly report by the IRS is that in 2005, the IRS had $1.3 billion of unclaimed tax returns from more than one million people, averaging refund of about $581.00. In 2006, the IRS reported it had more than $1.3 billion of unclaimed tax returns for nearly 1.4 million people averaging a refund of $604.00. In 2007, the IRS reported it had $1.1 billion of unclaimed tax returns for 1.1 million people averaging $640.00.
The tax reports by the IRS average about more than $1 billion of unclaim tax retrurns. But, the IRS referred to the people that weren't claiming tax returns as low income averaging between 33,000 to 39,000 of income a year. What happened to the IRS report concerning the other 11.2 to 13 million illegal immigrants that do pay federal taxes, but don't claim tax returns? Well according to the IRS people had a three year window to claim those taxes and if they don't it becomes the property of the U.S. Treasury.

Other statistics:

In the 2010 elections, only 6.6 million Latinos voted, according to the PEW Hispanic Center. Today, 12 million of Hispanics make up the voting-age population and U.S. Hispanics will reach $1.3 trillion of spending economic power by 2012 and $1.7 trillion by 2013.
In early December 2010, the Congressional Budget Office (CBO) report indicated that the approval of the DREAM Act would help cut the federal deficit by $1.4 billion, and generate $2.3 billion in corporate and social insurance taxes within the next ten years. CBO link:

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