Tuesday, December 9, 2025

Do undocumented immirgrants pay more taxes than Amazon, GM and IBM?

AI sez...

 Do undocumented immirgrants pay more taxes than Amazon, GM and IBM?

Yes, recent analyses by groups like the Institute on Taxation and Economic Policy (ITEP) and Yale's Budget Lab indicate that undocumented immigrants collectively pay significant amounts in federal, state, and local taxes, often exceeding the federal income taxes paid by major corporations like Amazon, GM, and IBM in specific years, highlighting a complex picture of tax contributions, though comparisons use different tax types (individual vs. corporate) and accounting for under-the-table payments is challenging. 
Key Findings from Studies:
  • Total Tax Contribution: In 2022, undocumented immigrants paid an estimated $96.7 billion in federal, state, and local taxes, notes Americans for Tax Fairness (ATF).
  • Comparison to Corporations (Federal Taxes): In 2022, Amazon, GM, IBM, and Netflix paid around $5 billion combined in federal income tax, while the estimated federal income tax from undocumented immigrants was between $19.5 to $22 billion, showing a large disparity.
  • Higher Effective Rates: Studies show undocumented immigrants often pay a higher percentage of their income in state and local taxes (around 8-9%) compared to top earners, who pay around 5-7%.
  • Corporate Tax Avoidance: Corporations like Amazon and IBM use legal loopholes to significantly lower their federal tax burdens, even with increased taxes from laws like the Inflation Reduction Act (IRA). 
The Nuance:
  • Different Tax Types: The comparison often contrasts individual (payroll, sales, property) taxes from immigrants with corporate income taxes, making direct comparison imperfect but highlighting differing contributions.
  • Underreported Income: Many undocumented workers pay taxes using Individual Taxpayer Identification Numbers (ITINs) or have taxes withheld by employers using fake Social Security numbers, contributing invisibly but significantly.
  • Broader Economic Impact: Beyond direct taxes, undocumented immigrants also contribute through consumer spending, and while they use fewer federal resources than corporations, they utilize state/local services like schools and hospitals, notes Americans for Tax Fairness (ATF). 

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