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Studies clash over the real cost of undocumented immigration

Undocumented immigrants pay $11.6 billion in state and local taxes, one study says. But another argues that they consume exponentially more in government…

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Each year, the 11 million undocumented immigrants living in the U.S. generate more $11.6 billion in state and local taxes, according to an updated 50-state analysis by the Institute on Taxation and Economic Policy last year (ITEP). But immigration regulation advocates call the study misleading for its failure to account for government services consumed by undocumented immigrants.

The original ITEP study was published last year. But its authors have now identified additional tax contributions that could be achieved with comprehensive immigration reform in Congress. Moreover, they hope the updated data will help inform the divisive conversation about undocumented immigration in the 2016 presidential race.

ITEP's report holds that state and local taxes could increase by more than $800 million under full implementation of the President Barack Obama’s 2012 and 2014 executive actions — known as DACA and DAPA, respectively. In addition, it says that creating better pathways to citizenship could yield billions in additional tax revenue.

If the 11 million undocumented immigrants in the U.S. were naturalized, ITEP's study says that “personal income tax collections would increase by more than $1 billion a year. Sales and excise taxes would increase by $695 million, and property taxes would grow by $360 million.”

A 50-state breakdown can be seen here:

Pennsylvania could stand to gain more than $51 million annually in state and local taxes, according to the data, while New Jersey could see a $77 million increase.

To reach this figures, the study takes into account the estimated size of each state's undocumented population, the estimated percentage of that population who own homes, average family size, average income, and other economic criteria.

However, the study does not include federal income tax, nor does it examine the cost of government services consumed by undocumented immigrants.

That's why Numbers USA, a Washington-based immigration reduction organization, takes offense with the ITEP study.

"I don't think there's ever been a contention from our side that illegal aliens don't pay taxes," Roy Beck, executive director of Numbers USA, told the the Inquirer's Michael Matza. "The real issue is what is the net effect of the taxes they pay vs. what they take in services."

Numbers USA cites a study that says low-skill undocumented immigrants pay consume about $30,000 a year in government services, while paying just $10,000 in state and local taxes. The study, conducted by Robert Rector and Christine Kim, concludes that U.S. taxpayers spend more than $89 billion on government services for some 4.5 million low-skilled immigrant households, which breaks down to about $330 a year per U.S. citizen taxpayer. (You can read that study here.)

Read the Inquirer's full write-up to hear more voices both sides of the aisle.

The full ITEP report can be read below:

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