Undocumented immigrants do pay taxes

Setting the record straight on what undocumented immigrants do – and don’t – contribute to the communities they live in.

They have often been accused of draining resources.

Many undocumented people have been paying taxes – like a landscaping business owner we spoke with.

For some, the question is how much undocumented people pay in taxes compared to how much is spent to provide them services.

There’s a lot of things we won’t tell you about this undocumented man; name, age, where he lives…

But he’s been here for 20 years and works as a landscaper to support his wife and two American born kids.

“I came here for most of the reasons that other people come, to seek a better life,” he said.

We asked him what he thinks when he hears people say undocumented immigrants “don’t” pay taxes.

“Since I came here, since I got my first job, I always paid taxes. State tax, federal tax, have a few vehicles, pay tax,” he said.

Elizabeth Ricci, an immigration attorney, tells us yes , it’s a no brainer, you can’t say undocumented people don’t pay taxes in the U.S.

“It’s intellectually dishonest. So everyone’s paying taxes, the question is to what level,” Ricci said.

State Senator Rob Sampson (R-Wolcott) supports immigration reform and believes undocumented people cost Connecticut more than it gets in tax revenue.

“The amount of taxes paid by illegal immigrants is about half of what a lawful resident would pay. They’re not able to work lawfully. They’ve got to work under the table,” Sampson said.

A study by the Institute on Taxation and Economic Policy (ITEP) – which some have described as left leaning – said based on estimates in 2022, undocumented immigrants paid approximately $406 million of state and local taxes in Connecticut. There’s no estimate on what they cost the state.

“Our research doesn’t really focus on the net effects, but we know that undocumented immigrants are working and paying taxes,” Marco Guzman with ITEP said.

Another study by the Federation for Immigration Reform (FAIR) – described by some as a right-leaning – looked at estimates of both how much undocumented people paid in to the system in Connecticut and how much programs for them, and their children cost. It concluded they cost Connecticut $1.3 billion in 2023.

“They have human needs, and if they can’t afford to pay for it, then somebody else is, and that is the taxpayers of Connecticut,” Ira Mehlman from FAIR said.

The undocumented man we spoke with said whatever numbers you want to quote, he believes by starting his own landscaping business to support his family, and employ others, he’s a net positive to our state.

“I’m not here to steal from the state or steal from other people, I’m just here for a better future,” he said.

The State of Connecticut’s Office of Policy and Management has hard data indicating in fiscal 2024 and 2025 combined, our state spent $80 million on Medicaid for undocumented children up to age 15 and pregnant, or postpartum mothers.

It is worth noting when undocumented people do pay taxes, they often don’t receive the services they pay for, namely, social security.