Lies Lou Dobbs Told Me: Illegal immigrants don't pay taxes!
by catchaz, Tue Apr 15, 2008 at 10:15:08 AM EDT
Since it's Tax day, i thought it was a good time to get away from the horserace and back to issues. And combatting the lies that Haters like Lou Dobbs tell is one of the most important issues to me. Of course Dobbs isn't the only one out there fighting to make the lives of some of our most vulnerable brothers and sisters even worse, he's just the poster boy.
One of the most easily seen-through lies of the Haters is the bullshit notion that "illegal immigrants don't pay taxes!" that is freaking ridiculous. obviously, they pay sales taxes on each and every taxable item they buy. but another huge problem with that lie is in the area of social security and payroll taxes. Illegal immigrants pay into these funds, but rarely recieve anything back for their contribution.
of course many of us know that one day, at present rates, the Social Security Fund will run out. But did you know that if we stopped illegal immigration, the fund will would run out sooner? it's a fact. so, yes, you got it right, ILLEGAL IMMIGRATION IS SAVING SOCIAL SECURITY! tell that to next bastard like Lou Dobbs when they start spouting their nazi propagnada about illegal immigrants breaking our bank.
Below the fold is an excellent article detailing the social security tax situation, and how illegal immigrants are paying in, but not taking out. don't miss the comments: not a single immigration Hater that chimes in with Immigrant Hate EVER addresses what the article says, they just keep right on bashing, facts be damned!
Illegal immigrants pay billions in taxes
But many miss their refunds because, fearing deportation, they don't file
By TRAVIS LOLLER
NASHVILLE, TENN. -- The tax system collects its due, even from a class of workers with little likelihood of claiming a refund and no hope of drawing a Social Security check.
Illegal immigrants are paying taxes to Uncle Sam, experts agree. Just how much they pay is hard to determine because the federal government doesn't fully tally it.
But the latest figures available indicate it will amount to billions of dollars in federal income, Social Security and Medicare taxes this year.
One rough estimate puts the amount of Social Security taxes alone at around $9 billion per year.
Paycheck withholding collects much of the federal tax from illegal workers, just as it does for legal workers.
The Internal Revenue Service doesn't track a worker's immigration status, yet many illegal immigrants fearful of deportation won't risk the government attention that will come from filing a return, even if they might qualify for a refund. Economist William Ford of Middle Tennessee State University says there are no firm figures on how many such taxpayers there are.
"The real question is how many of them pay more than they owe. There are undoubtedly hundreds of thousands of people in that situation," Ford said.
Alternative means of filing
But some illegal immigrants choose to file taxes and write checks come April 15, using an alternative to the Social Security number offered by the IRS so it can collect income tax from foreign workers.
"It's a mistake to think that no illegal immigrants pay taxes. They definitely do," said Martha Pantoja, who has been helping Hispanic immigrants this tax season as an IRS-certified volunteer tax preparer for the nonprofit Nashville Wealth Building Coalition.
Among those she has assisted is Eric Jimenez, a self-employed handyman who has worked in Nashville for several years.
He feels obliged to pay taxes -- even though, as Pantoja said, "nothing would happen" to him if he did not.
"I have an idea, a mentality, that to be a good citizen you have to pay taxes," he said. "Also, I'm conscious of the fact that the money we pay in taxes supports the schools and all the public services."
Pantoja said she has helped a number of construction workers who, because they are classified as independent contractors by their employers and have no taxes withheld, owe big tax bills come April.
Beyond income tax, they have to pay the full Social Security and Medicare taxes due.
A $9 billion estimate
The Social Security Administration estimates that about three-quarters of illegal workers pay taxes that contribute to the overall solvency of Social Security and Medicare.
The agency estimates that for 2005, the last year for which figures are available, about $9 billion in taxes was paid on about $75 billion in wages from people who filed W-2 forms with incorrect or mismatched data, which would include illegal immigrants who drew paychecks under fake names and Social Security numbers.
Spokesman Mark Hinkle said Social Security does not know how much of the $9 billion can be attributed to illegal immigrants. The number is certainly not 100 percent, but a significant portion probably comes from taxes paid by illegal immigrants.
Nine billion dollars sounds like a lot of money, and it is, but it is only about 1.5 percent of the total $593 billion paid into Social Security in 2005.
The impact on Social Security is significant, though, because most of that money is never claimed by the people who pay it, and it helps cover retirement checks to legal workers.
Federal law prohibits paying Social Security to illegal immigrants, but the administration factors in legal and illegal immigration when projecting the trust fund's solvency.
This is especially important as the 78 million-member baby boom generation begins to leave the work force and draw Social Security checks.
"Overall, any type of immigration is a net positive to Social Security. The more people working and paying into the system, the better," Hinkle said. "It does help the system remain solvent."
The Social Security Administration drew from census and Immigration and Customs Enforcement data in 2007 to project the effects of higher and lower immigration patterns.
If net immigration is high at 1.3 million people a year, the combined trust fund would be exhausted in 2043. But the fund runs out four years earlier if annual net immigration amounts to about half that -- 472,500 legal immigrants and 250,000 illegal immigrants.
One indicator as to how many illegal immigrants pay income tax is the 9 million W-2 forms with mismatched names and Social Security numbers it received in 2004. The IRS said those forms reported about $53 billion in wages, and about three-fourths of that, or $40 billion, had taxes withheld.
The IRS also has been issuing Individual Taxpayer Identification Numbers for 12 years to foreigners without a Social Security number.
It's believed that many workers who seek the ITINs are in the country illegally. The IRS reported that 2.5 million tax returns were filed with an ITIN in 2004.
Ford said a majority of economists agree that illegal immigrants are a net benefit for the U.S. economy.
He said the tax contributions from illegal immigrants, including sales taxes, property taxes and excise taxes (such as the gas tax), are significant.
He calculates that illegal immigrants contributed $428 billion dollars to the nation's $13.6 trillion gross domestic product in 2006.