With the recent executive action stated to be in the offing by President Obama millions of undocumented immigrants will be protected from deportation. But there are some misconceptions about undocumented immigrants, and here they are, with why they are wrong:
Myth # 1: Undocumented immigrants do not pay taxes.
This cannot be further from the truth. The fact is, undocumented immigrants are already paying their taxes. In the year 2010 they collectively paid an estimated 10.6 billion in state and local taxes, according to an institute on taxation in the United States. The contributions varied from state to state, with an average of 6.4% of the immigrants’ income being paid in as taxes – both state and local. A 2007 report states that around 50% to 75% of the 11 million unauthorized US immigrants file and pay their income taxes each year.
Estimates state that allowing immigrants to stay in the country and work legally would help to boost state and local tax contributions by $2 billion every year, which could significantly help to reduce deficits and improve revenue.
Myth # 2: Undocumented immigrants do not pay into Social Security.
The reality is that undocumented immigrants contribute more in payroll-related taxes than what they will ever consume in public benefits. According to the Social Security Administration undocumented immigrants have paid a mind-boggling $100 billion into the fund over the last 10 years. According to the body they are paying an approximate $15 billion a year into Social Security with no option of ever seeking benefits. The truth is that without the estimated 3.1 million undocumented immigrants paying into the system Social Security would have entered into a persistent shortfall of tax revenue.
Without the presence of immigrants, the Social Security Board of Trustees estimates that the system will no longer be able to pay up the promised benefits by the year 2037.
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