Undocumented Immigrants Contribute $100 Billion in Annual Tax Revenue, Rep. Crockett Reports

By Marcus Bennett

April 29, 2025 at 03:30 AM

Undocumented immigrants contribute significantly to the U.S. tax system, with Texas Congresswoman Jasmine Crockett highlighting their estimated $100 billion annual contribution, including Social Security payments they cannot access.

"These individuals pay into a system that they're shut out from, and it's time to acknowledge that contribution," stated Crockett, shifting focus to the economic impact of undocumented workers rather than just their legal status.

Social Security office phone support sign

Social Security office phone support sign

How Undocumented Immigrants Pay Taxes:

  • Use Individual Taxpayer Identification Numbers (ITIN) issued by the IRS
  • Pay through payroll deductions when working under various arrangements
  • Contribute to state, local, and federal taxes
  • Pay into Social Security despite being ineligible for benefits

Key Statistics:

  • Over $11 billion annually in state and local taxes (Institute on Taxation and Economic Policy, 2020)
  • Billions in payroll taxes go to Social Security's "earnings suspense file"
  • Total contributions estimated around $100 billion annually across all tax types

The Social Security Administration confirms receiving substantial payroll taxes from workers whose information doesn't match their records, often from undocumented labor. These funds support the Social Security system even though the contributors cannot access benefits.

Crockett's statement has sparked renewed debate about immigration policy, potentially shifting Democratic messaging toward highlighting economic contributions rather than focusing solely on border security. While the exact figures remain debated, the substantial tax contributions of undocumented immigrants are well-documented through various government and research sources.

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