Report: Undocumented immigrants pay $31.2M in state, local taxes in R.I.

THE INSTITUTE ON TAXATION AND ECONOMIC POLICY said there are approximately 29,000 undocumented immigrants in Rhode Island. / COURTESY INSTITUTE ON TAXATION AND ECONOMIC POLICY
THE INSTITUTE ON TAXATION AND ECONOMIC POLICY said there are approximately 29,000 undocumented immigrants in Rhode Island. / COURTESY INSTITUTE ON TAXATION AND ECONOMIC POLICY

PROVIDENCE – Undocumented immigrants pay $31.2 million in state and local taxes in Rhode Island, according to a study released Friday by the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan think tank that works on state and federal tax policy issues.
The study, Undocumented Immigrants’ State and Local Tax Contributions, also says that Rhode Island would gain more than $6 million under comprehensive immigration reform. It said Rhode Island has approximately 29,000 undocumented immigrants, and that 20 percent are homeowners. Their average family income is $33,300.
“This report shows that undocumented immigrants are contributing to Rhode Island’s state and local revenues through sales, property and income taxes,” Doug Hall, director of economic and fiscal policy at the Economic Progress Institute, a nonpartisan research and policy organization dedicated to improving the economic well-being of low- and modest-income Rhode Islanders, said in a statement.
“Regardless of their immigration status, immigrants in Rhode Island make our economy stronger as they spend to provide for the well-being of their families,” Hall added.
The report found that undocumented immigrants contribute $3.9 million in personal income taxes, $9.7 million in property taxes and $17.6 million in sales and excise taxes to the Ocean State’s economy.
Undocumented immigrants in Rhode Island have an effective tax rate of 7.4 percent, compared with 6.3 percent for Rhode Island’s wealthiest taxpayers, the report said, adding these tax contributions would be greater if all undocumented immigrants were granted legal status under comprehensive immigration reform.
“Keep in mind most state and local taxes are collected from people regardless of immigration status,” Meg Wiehe, ITEP director of programs, said in prepared remarks. “Undocumented immigrants, like everyone else, pay sales and excise taxes when they purchase goods and services. They pay property taxes directly on their homes or indirectly as renters. And, many undocumented immigrants also pay state income taxes.”
In neighboring Massachusetts, undocumented immigrants pay $184.6 million in state and local taxes, and would pay an additional $56.2 million through immigration reform.
Connecticut’s undocumented immigrants pay $124.7 million in state and local taxes, and would pay another $20.6 million through immigration reform.
The institute said the report “helps dispute the erroneous idea espoused during President Trump’s address to Congress that undocumented immigrants are a drain to taxpayers.”
It said undocumented immigrants contribute an estimated $11.74 billion to state and local coffers annually through a combination of sales and excise, personal income and property taxes.
It said that the nation’s approximately 11 million undocumented immigrants pay 8 percent of their incomes in state and local taxes every year.
“While it is unlikely to happen in the current political environment, undocumented immigrants’ state and local tax contributions could increase by up to $2.1 billion under comprehensive immigration reform, boosting their effective tax rate to 8.6 percent,” the report stated.

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2 COMMENTS

  1. I’m reading the above article, and the way it is written, and I am very disappointed with it…more-so a highly respected publication such as PBN has published it.
    The article comes across as saying OK, all these people are ILLEGAL, etc., etc… but, because somehow they have figured out a way of doing so, even though they are also working here illegally, it’s OK because they are paying taxes, generating the God Almighty dollar to be squandered by our corrupt, irresponsible politicians.
    As such we must WINK-WINK look the other way!
    May I suggest that the following to sites be visited and what is there read! Especially the Seniors League site and article how Illegals are now also able to SCAM Social Security Benefits!!!

    https://www.ssa.gov/pubs/EN-05-10096.pdf

    http://seniorsleague.org/how-undocumented-workers-are-becoming-entitled-to-social-security/

  2. How are undocumented immigrants earning money at legitimate jobs and paying Federal and state income taxes? It is illegal to hire undocumented immigrants. No legitimate business is able to hire an undocumented immigrants. We have to ID and do a check on every potential employ to be sure they can legally work in the USA. So they must be paid under the table? Everything involved with this idea requires the breaking of many laws by employee and employer.