Yes, Undocumented Immigrants Pay Taxes

Undocumented people pay over $100 Billion every year to Federal, State, local taxes

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Jose Antonio Vargas
Author Jose Antonio Vargas (Left) interviews Francine Lipman, William S. Boyd Professor of Law at UNLV, about how much undocumented immigrants contribute in taxes and devastating impact of ICE and IRS collaboration on immigrants and the U.S. economy.

Editor’s Note: The following article and video was originally published in an e-newsletter by Define American on April 4, 2025, and republished by our sister publication, Tribuno del Pueblo.

One of the biggest myths about undocumented immigrants is that they don’t pay taxes and are a drain on the United States economy — when in reality, the opposite is true. Undocumented people pay federal income tax, state and local taxes, sales tax — contributing tens of billions of dollars each year. They pay Social Security and unemployment tax, even though they are ineligible to receive those benefits, essentially subsidizing the system.

Now, their tax data could be used against them. The IRS and ICE are considering an agreement in which the tax agency could share information with immigration officials to confirm the names and addresses of people facing deportation orders.

In this eye-opening interview, I speak with Francine Lipman, William S. Boyd Professor of Law at UNLV, about how much undocumented immigrants contribute in taxes and the potentially devastating impacts of IRS and ICE collaboration — on both immigrant families and on our economy.

Watch our full conversation and please subscribe to our channels on YouTube and Spotify for more in-depth conversations on immigration in America.


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