The hidden tax power of undocumented immigrants

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A common argument among anti-immigrant politicians and advocates is that noncitizens who are in the United States illegally exploit government benefits and constitute a financial burden on the country.

That claim is largely inaccurate and misleading.

The latest evidence was provided this week by policy analysts and researchers at the Institute on Taxation and Economic Policy. They found that undocumented immigrants in the United States paid $96.7 billion in federal, state, and local taxes in 2022, averaging $8,889 per person.

Most of these taxes, $59.4 billion, went to the federal government, while $37.3 billion was paid to state and local governments. In Massachusetts, roughly $650 million in local and state tax revenue was raised from immigrants without legal status.

Ironically, more than a third of the tax dollars paid nationwide by undocumented immigrants — or $33.9 billion — went toward funding federal programs that they themselves are banned from accessing, like Social Security, Medicare, and unemployment insurance.

This is a relevant point, given that Donald Trump, during the infamous presidential debate in late June, falsely claimed that immigrants here illegally are receiving Social Security and Medicare benefits under the Biden administration.

Another ironic data point the researchers found: In 40 states, undocumented immigrants pay higher state and local tax rates than the top 1 percent of households living in those states. Tax the rich, indeed! (Notably, Massachusetts is not among those 40 states.)

The most crucial point of the report, though, is that undocumented immigrants’ payments would increase if only they were granted work authorization, which naturally speaks to a major economic benefit that would stem from legalizing the estimated 11 million unauthorized immigrants currently in the country.

Their tax contributions could potentially increase by about $40 billion annually. It’s yet another argument for legalizing their status. Plus, undocumented immigrants contribute to the economy not only as taxpayers but also as consumers and entrepreneurs, stimulating economic growth and job creation.

And yet, there’s been a historic tendency in the United States to exploit immigrants’ labor, taking their presence for granted and vilifying them. That’s been the American story for almost 200 years. It’s not like every immigrant wave has been greeted with roaring approval and open arms.

So, unfortunately, the numbers don’t speak for themselves, but the economic impact of undocumented immigrants is quietly powerful, nonetheless.

This is an excerpt from ¡Mira!, a Globe Opinion newsletter from columnist Marcela García. Sign up to get this in your inbox a day early.