This is one of the main arguments that has been floating around a lot for the past few week, but it is not new to this debate. The Center for Immigration Studies (probably my favorite website that covers this issue), who has been addressing the whole illegal immigration issue for years, published an article back in 2002 that addresses this argument that is constantly being used by the pro-illegal immigration crowd. Here is an excerpt:
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Amnesty for Illegals Who “Pay Taxes”?
Advocates contend that illegal immigrants work hard in jobs Americans will not take, pay taxes, contribute to society, and thus should be able to earn their way to legal status. This concept, euphemistically called “earned regularization,” would create opportunities for illegal aliens to receive lawful permanent resident status by earning “credits” in a number of ways, including by paying taxes.
The withholding of taxes is involuntary. Federal, state, and local income taxes and Social Security taxes are withheld from paychecks by employers. Workers have no say in the matter. But taxes withheld are not necessarily taxes paid. The United States has a progressive income tax that applies very low tax rates to low-income households. In fact, millions of households pay no federal tax at all. It is believed that the vast majority of illegal residents who file a tax return using an ITIN get full or partial tax refunds because of the low level of their earnings. Indeed, some erroneously receive the Earned Income Credit, intended to supplement the income of the working poor. Thus, ironically, by issuing ITINs the IRS may actually be reducing the tax revenue received from illegal aliens.
Providing an amnesty of some sort to illegal aliens is opposed by a majority of Americans.24 There has been little support to do so in the current session of Congress. However, the concept is still being pushed by illegal immigrant advocates, by the Mexican government and by elected officials eager for political support from the large Hispanic community living in the United States.
The principal argument these advocates make on behalf of an amnesty is that illegal aliens pay taxes. It is true that taxes are withheld for many illegal aliens, but it is involuntary. Census data show that a high percentage of Hispanics earn very low wages. If illegal aliens were to be “regularized” and authorized to work in the United States, it is highly likely that they would pay little or no income tax. The IRS has important data relating to how many illegal aliens have been issued ITINs, how many have filed tax returns, and the net amount of tax that was paid after exemptions, credits, and refunds. This aggregated information needs to be made available to the public, so that if Congress ever debates the merits of another amnesty for illegal aliens, it can do so based on facts, not platitudes. (more…)
