Everyone Pays Taxes, Including Undocumented Immigrants
March 21st, 2017
According to a new report by the Institute on Taxation and Economic Policy (ITEP), it is estimated that undocumented immigrants in Mississippi pay almost $22,684,000 in state and local taxes. Nationally, undocumented immigrants pay over $11.74 billion in state and local taxes. The report, entitled “Undocumented Immigrants’ State and Local Tax Contributions,” highlights the contributions of undocumented immigrants as taxpayers to state and local governments.
In the report, ITEP analysis of tax contributions included not only sales and excise taxes and property taxes, but personal income taxes as well. Sales taxes are paid by all who purchase goods and services that are subject to the tax, no matter their immigration status. In Mississippi, the sales tax is the largest source of state tax collections, and the inclusion of groceries in the state sales tax means it is more difficult for anyone living in Mississippi to avoid paying significant sales taxes. Regarding personal income taxes, it is estimated that between 50-75 percent of undocumented immigrants file income tax returns, but many who do not still contribute to personal income taxes through payroll withholding by their employer.
For more on this report, visit the Institute on Taxation and Economic Policy’s report page.