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‘Undocumented immigrants paid $9.8 bn in 2019 as taxes in the US’

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Vinayak Barot

New Delhi: Undocumented immigrants in America earned around USD 92 billion and contributed nearly USD 9.8 billion in federal, state, and local taxes in 2019, a think-tank has revealed.

Undocumented Mexican immigrants held more than USD 82.2 billion in spending power vis-à-vis undocumented Indian immigrants’ USD 15.5 billion.

“Undocumented Indians in the USA contributed USD 2.8 billion to the federal, state, and local tax revenue, and now they are the top-third contributor to the US economy among other undocumented immigrants,” a media report said on Tuesday.

The latest report published by the think-tank, American Economy, on ‘the Contribution of Undocumented Immigrants to the US economy said that the number of Mexican immigrants without documentation in the US is 4.2 million. In all, a total of nearly 10.3 million people are living in America without any documents.

Former President Donald Trump had tried to contain illegal immigration of Mexicans by building a wall between the US and Mexico.

“Money that often goes back into local economies as they spend on housing, consumer goods, and services.”

The most undocumented people living in the US are from Mexico, followed by El Salvador (six percent), India (5.7 percent), Guatemala (5.4 percent), and Honduras (four percent).

With its USD 15.5 billion worth of  spending power, India holds the second position, followed by El Salvador (USD 11.5 billion), Guatemala (USD 9.1 billion), and Honduras (USD 6.4 billion).

El Salvador contributes USD 1.4 billion, Guatemala USD 1.1 billion, and Honduras contribute USD 778 million to the federal, state, and local tax revenue.

The US-based experts say that liberal laws and weak administration may increase illegal immigration in the country. Apart from taxes and the spending power of illegal immigrants, illegal immigration in the US could be an important reason for unemployment in the country.

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