Fact Check: "According to a 2024 study by the Institute on Taxation and Economic Policy, undocumented immigrants contributed $8.5 billion in state and local taxes in 2022."
What We Know
A recent report from the Institute on Taxation and Economic Policy (ITEP) indicates that undocumented immigrants contributed a substantial amount to state and local taxes in 2022. Specifically, the report states that undocumented immigrants paid approximately $8.5 billion in state and local taxes in California alone, which is a significant portion of the total contributions made by this demographic across the United States. In total, undocumented immigrants contributed about $96.7 billion in federal, state, and local taxes nationwide in 2022, with California being the largest contributor at the state level (ITEP, Cal Budget Center).
Analysis
The claim that undocumented immigrants contributed $8.5 billion in state and local taxes is well-supported by the data provided in the ITEP report. This figure is corroborated by multiple sources, including a detailed analysis from the Cal Budget Center, which specifically highlights California's tax contributions from undocumented immigrants (Cal Budget Center).
The reliability of the ITEP as a source is bolstered by its reputation as a non-profit, non-partisan organization that specializes in tax policy research. The report was authored by credible analysts, including Carl Davis, Marco Guzman, and Emma Sifre, who have backgrounds in economic research and policy analysis (ITEP).
Moreover, the methodology used in the report appears sound, as it aggregates tax contributions from various forms of taxes, including sales and excise taxes, property taxes, and income taxes. This comprehensive approach enhances the validity of the findings. However, it is important to note that while the ITEP report provides a national overview, the specific figure of $8.5 billion pertains exclusively to California, which may lead to some confusion if not contextualized correctly.
Conclusion
The claim that undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 is True. This figure is directly supported by credible research from the ITEP and corroborated by other reputable sources. The data reflects the significant economic contributions of undocumented immigrants, particularly in California, and highlights the broader implications for tax policy and public services.