+7 votes
in General Factchecking by Genius (41.0k points)
Undocumented immigrants in the U.S. don't pay taxes.

10 Answers

+10 votes
by Journeyman (2.1k points)
selected by
 
Best answer

Immigrants, including undocumented, are required to pay taxes by law and contribute billions of dollars each year in taxes, despite their immigration status. The Internal Revenue Service (IRS) issues Individual Taxpayer Identification Numbers to ensure that people, including undocumented immigrants, can pay taxes. According to the American Civil Liberties Union, immigrants pay over $90 billion in taxes each year while receiving a mere $5 billion in welfare. Therefore, regardless of their status, immigrants are significant contributors to the U.S. economy through the payment of various taxes.

https://www.irs.gov/individuals/international-taxpayers/tax-information-and-responsibilities-for-new-immigrants-to-the-united-states

https://apnews.com/article/fact-check-immigrants-taxes-rent-vaccine-requirements-983035929946

False
by Apprentice (1.4k points)
+1
I appreciate your detailed fact-check. I can't help but agree when a source is coming from the IRS page itself. I've known that undocumented immigrants contribute to our society, but I didn't know at what cost. Your breakdown of this claim as a whole is detailed and concise.
by Novice (930 points)
I think your fact check is great. You were able to explain why the claim is false, and you gave multiple sources to back up the claim. I appreciate that you gave out specific numbers based on taxes to cement the fact that this claim is false.
by Apprentice (1.2k points)
+1
This is a great fact check! I liked how you used such a reliable  source like the official IRS website. I thought you broke down the information very well and explained it in such in informative way. The fact you used specific data to back up these claims shows how much research you did on this!
by Novice (540 points)
+1
You did a great fact check. You got straight to the point and used some greats trusty sources to back up your claim. The information that you put down was informative and using the IRS as a source was a great fit since the IRS is the people who deal with the taxes and people tend to believe the government for information.
by Genius (41.0k points)
+1
Is the American Civil Liberties Union stat within the two links? Or did you get it directly from them (didn't see a URL for that if so)?
by Novice (750 points)
I liked that you included sources from the IRS in your fact check. By adding numbers and statistics, it acts as evidence to support your claim. I also appreciated you adding links to your sources as reference to your readers.
+9 votes
by Journeyman (2.2k points)

In an AP Fact Check, claims that immigrants in the U.S. have to contribute to housing costs, taxation and other requirements U.S. citizens face. They quoted a professor from George Mason University, Michael Clemens, who said undocumented immigrants have to pay state, local and federal taxes every year, but they do not receive most benefits that a U.S. citizen get. CNN states that “undocumented immigrants pay billions of dollars in federal taxes annually, between tax returns filed and taxes deducted from paychecks.” They also get the National Immigration Law Center to breakdown why immigrants are paying taxes. They said immigrants pay taxes because it shows they are “complying with federal tax laws,” “demonstrating good moral character” and tax returns are used to document their work history. They also state immigrants who do not have social security number still pay taxes. 

https://apnews.com/article/fact-check-immigrants-taxes-rent-vaccine-requirements-983035929946

https://www.cnn.com/2023/04/18/us/undocumented-immigrants-taxes-cec/index.html

Exaggerated/ Misleading
by Journeyman (2.0k points)
I appreciate this fact-check. Your sources are good, a;though I think it is beneficial to quote the sources from which the CNN quotes are referring to. It is important to note that immigrants, both undocumented and legal, pay taxes yet are unable to receive the benefits most citizens receive. Not only this, but they have no input on the taxes in communities in which they live, because noncitizens cannot vote.
by Novice (670 points)
I appreciate your fact-check. Your sources are indeed reliable. Nonetheless, incorporating direct quotes from the sources CNN cites would improve the information's transparency. It's important to recognize that immigrants pay taxes regardless of their documentation status, yet they frequently aren't granted the same privileges as Americans. Furthermore, because they are not citizens, they are not represented in the community's decision-making process concerning the distribution of taxes.
by Novice (750 points)
Your meticulous fact-checking is greatly appreciated, and it's admirable that you have confirmed the validity of your sources. Nonetheless, direct quotes from the sources CNN cites would improve transparency. It is important to recognize that even if immigrants pay taxes, they frequently do not enjoy the same benefits as citizens, regardless of their paperwork status. They are also underrepresented in municipal tax allocation decisions due to their noncitizen status.
by Novice (750 points)
I really appreciate you fact-checking, it is greatly appreciated, and it's nice that you have confirmed the validity of your sources. Nonetheless, direct quotes from the sources CNN cites would improve clarity. It is important to recognize that even if immigrants pay taxes, they frequently do not enjoy the same benefits as citizens, regardless of their paperwork status. They are also underrepresented in municipal tax allocation decisions due to their noncitizen status.
by Genius (41.0k points)
Wouldn't the claim be false based on your fact-check? I would like to better understand how decided it's misleading when you stated several times that undocumented immigrants do pay taxes?
+4 votes
by Apprentice (1.9k points)

Elon Musk's claim is false. Those who immigrate to the U.S. are no different than other citizens, as they all must pay taxes. Those who are undocumented citizens are considered a nonresident of the U.S. for tax purposes according to the IRS. However, there are tax treaties, which according to the IRS means that, "Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from U.S. income taxes on certain items of income they receive from sources within the United States." Not all states honor theses reduction and they can only happen if there is a treaty between the foreign country and the U.S. Here you can find a list of the different countries that have a tax treaty with the U.S.: https://www.irs.gov/individuals/international-taxpayers/tax-treaties. Despite these reductions immigrants are legally required to pay taxes. According to Boundless a non-traditonal law firm that aids with immigration, "Immigrants in the U.S. contributed more than $330.7 billion in federal income taxes in 2019, and over $492 billion dollars in total taxes (including state, municipal, and sales taxes). The Tax Foundation estimates that American and immigrant taxpayers paid $1.6 trillion in individual income taxes in 2019."

https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

https://www.boundless.com/blog/boundless-releases-2022-immigrant-income-taxation-report/

False
by Novice (750 points)
I like that you explained your claim very thoroughly by pulling credible sources such as the IRS and a law firm's website. I wonder if you're able to find the specific person who stated these quotes you added in your fact check.
+2 votes
by Apprentice (1.7k points)

This claim is False: They do indeed pay their taxes and if not are in some sort of deduction from their pay. No they cannot do jury duty because they are not legal U.S citizens. 

The point of being a citizen is contributing to the general economy and common good of our nation while having a stake in both government and our justice and legal system. 

https://www.americanimmigrationcouncil.org/research/adding-billions-tax-dollars-paid-undocumented-immigrants

This source above explains that: “the best evidence suggests that at least 50 percent of undocumented immigrant households currently file income tax returns using Individual Tax Identification Numbers (ITINs), and many who do not file income tax returns still have taxes deducted from their paychecks.” The end result is that undocumented immigrants are paying billions of dollars each year in taxes.

This defies Musk's claim.

What I think is important to keep in kind too is the power that Musk has. Many people could see this and take it and run, putting a target on the back of undocumented immigrants. Keep in mind, he posted this to which it gained a lot of attention on a media platform he literally owns. 

While there is some truth in his statement regarding the jury duty, it seems a little harsh and redundant. Why would you want someone who is not a U.S citizen making decisions in a court that is not legally entitled to them anyway? He is making a point that jury duty is a chore for most citizens, but it still represents an important and integral part of our democracy does it not?

The American Immigration Council has a step by step breakdown on the tax information and also states that these undocumented citizens do not receive nearly the same benefits as an American citizen too. So he has a lot of parts of his claim that are strung out on misinformation.

There is a clear distinguishment of the rights and laws between citizens and non-citizens as the key is not residency, but citizenship.

False
by Novice (690 points)
I think your fact check describes the falsity of Musk's statement while including important information about the amount of undocumented immigrants who pay taxes every year even if it is not directly through an ITIN. You made a good point about the power Musk has and how making this statement could negatively impact many people and spread disinformation. I do think it would be beneficial to include another source to bulk up your fact check and to include some more information.
+1 vote
by Novice (830 points)

This claim is false. Undocumented immigrants do pay taxes in many ways, regardless of having a social security number or legal status. Many immigrants file taxes using an Individual Tax Payer Identification Number. Immigrants are also subject to pay roll tax deductions, sales tax, property tax, etc. In fact, their record of tax payment can be used as positive leverage if they choose to get official citizen status. It is true that illegal immigrants can get bank loans, mortgages, insurance, drivers license and health care; however, there are very specific requirements they must meet and they may still be denied by certain places or companies. Overall this claim is false and a generalization that every immigrant gets the benefits of a US citizen. Many illegal immigrants are paying taxes and receiving no benefits what so ever. 

CNN- https://www.cnn.com/2023/04/18/us/undocumented-immigrants-taxes-cec/index.html

https://www.healthcare.gov/immigrants/lawfully-present-immigrants/#:~:text=If%20you%27re%20a%20“qualified,state%20income%20and%20residency%20rules.

https://www.justice.gov/opa/pr/justice-department-and-consumer-financial-protection-bureau-issue-joint-statement-cautioning#:~:text=Some%20financial%20institutions%20have%20maintained,whenever%20they%20consider%20immigration%20status

False
by Novice (890 points)
I like how you provided a great explanation and a lot of sources for your fact check.
by Genius (41.0k points)
Nice work with the source list! Going forward, try to cite your sources within your fact-check. Thanks!
+1 vote
by Novice (680 points)

This claim is misleading and inaccurate. Undocumented immigrants do pay taxes, just not in the same way as citizens or legal residents. While they may not have legal status, many undocumented immigrants still contribute to federal, state, and local taxes through various means such as sales taxes, property taxes (indirectly through rent or home ownership), and income taxes using Individual Taxpayer Identification Numbers (ITINs) provided by the IRS. According to the Institute on Taxation and Economic Policy (ITEP), undocumented immigrants collectively contribute billions of dollars in taxes annually. A report from ITEP estimates that in 2019, undocumented immigrants in the U.S. paid approximately $11.7 billion in state and local taxes alone. Additionally, they contribute billions more in federal taxes, including payroll taxes for Social Security and Medicare, despite being ineligible for most federal benefits. A study published in the National Bureau of Economic Research (NBER) found that immigrants, including undocumented immigrants, have a positive net fiscal impact on the U.S. economy over the long term, meaning their contributions to the economy through taxes outweigh the cost of public services they consume. https://itep.org/undocumented-immigrants-state-local-tax-contributions/

https://www.nber.org/papers/w21841

False
+1 vote
by Novice (780 points)

The claim that undocumented immigrants in the U.S. don't (have to) pay taxes is entirely false. The IRS gives a detailed list of how and why undocumented immigrants do have to pay taxes. 

"If you are any of the following, you must file a return:

  1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year.
  2. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
  3. A representative or agent responsible for filing the return of an individual described in (1) or (2),
  4. A fiduciary for a nonresident alien estate or trust, or
  5. A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax"

I am inclined to believe the word of the IRS in claims such as this.

https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

False
by Novice (890 points)
I like the detailed and summarized version of what the IRS says to explain your answer, maybe adding any statistics around how much immigrants have payed in taxes could help as well.
by Novice (690 points)
This fact check shows the falsity of the original statement, but I think it could include some more information. It feels more like a copy paste answer than an analyzation of the claim. For example you could include information on how they are able to pay taxes through an ITIN or the amount of money undocumented immigrants contribute to the economy through their taxes. I think you could also explain a little as to why you're inclined to believe the word of the IRS in comparison to other sources.
+1 vote
by Novice (890 points)

The main claim being investigated is that undocumented immigrants in the u.s don’t pay taxes, which is false. The claim came from Elon Musk on an X post where he states at the end, “What’s the point of being a citizen if an illegal gets all the benefits, but doesn’t pay taxes or do jury duty?” 

 

According to the American Immigration Council, undocumented immigrants paid $11.6 million in state and local taxes in 2013. This statistic includes data from sales taxes, income taxes and property taxes. Like U.S. citizens undocumented immigrants have to pay taxes as well, regardless of their current citizen status. The IRS says that the taxation of an individual who is not a U.S. citizen or U.S national depends on their residency status which the IRS provides 

Guidelines for. 

https://www.americanimmigrationcouncil.org/research/adding-billions-tax-dollars-paid-undocumented-immigrants 

https://www.irs.gov/individuals/international-taxpayers/tax-information-and-responsibilities-for-new-immigrants-to-the-united-states 

False
0 votes
by Novice (750 points)
This original claim was posted on X by Elon Musk. However, after doing some digging, the claim that undocumented immigrants in the US don't pay taxes is false. According to the American Immigration Council, whether undocumented immigrants pay taxes has been a myth and debate in politics. But the reality is that "undocumented immigrants pay taxes." In fact, "undocumented immigrants are paying billions of dollars each year in taxes." To put things in numerical perspective, "undocumented immigrants paid $11.6 billion in state and local taxes in 2013." In addition, AP News published an article debunking this myth. According to Michelle Mittelstadt, a spokesperson for the the nonpartisan Migration Policy Institute, “unauthorized immigrants pay sales taxes, as does everybody else, and very significant numbers of them also have federal and state tax withholding in their paychecks." In conclusion, whether or not it was intentional, Elon Musk put out false information in his post, because undocumented immigrants do in fact pay taxes in this country.

Sources:

https://twitter.com/elonmusk/status/1753894000510341530

https://www.americanimmigrationcouncil.org/research/adding-billions-tax-dollars-paid-undocumented-immigrants

https://apnews.com/article/fact-check-immigrants-taxes-rent-vaccine-requirements-983035929946
False
0 votes
by Novice (690 points)

This statement is false. The original X post is from Elon Musk who is the creator of Tesla. Elon Musk runs the multi-billion dollar company as well as the X platform as well. He did not include any sources to his post, which implies he may have heard this information somewhere and relayed it without checking whether the claim is true. According to the University of Missouri School of Law, “undocumented immigrants pay a higher rate of tax than U.S. citizens because the burden of tax on such people tends to outweigh the benefits received.” Due to being undocumented, this group of immigrants does not receive the benefits of paying taxes in the United States. Without a SSN it’s extremely hard to obtain the resources and materials that U.S. citizens obtain every year. Though undocumented immigrants do not have an SSN, according to the IRS they are assigned Individual Taxpayer Identification Numbers which have “no other purpose” besides federal tax reporting. With this information it is safe to say this statement is false. 

https://scholarship.law.missouri.edu/betr/vol2/iss2/7/ 

https://www.irs.gov/individuals/individual-taxpayer-identification-number

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