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As the new immigration Bill gained momentum, many studies and reports have come out with facts, figures and estimates on the annual costs of illegal immigration faced by federal and state governments. The debate over what to do about illegal aliens places the US at a crossroads. The repeat of 1986 amnesty is like a free license for continued illegal migration. In the debate cost of illegal immigration statistics is put at $113 billion as a sum of $29 billion at the federal level and $84 billion at the state and local level. In a major finding, a study estimates that tax collections from illegal alien workers, those in the over -ground economy and those in the underground economy do not contribute to the level of expenditures. Key Findings Out of the Illegal immigration costs U.S. taxpayers of $113 billion some $84 billion are absorbed by state and local governments. Illegal aliens cost U.S. taxpayers an average amount per native-headed household $1,117. The fiscal impact per household varies because the greatest share of the burden falls on state and local taxpayers whose depending on the size of the illegal population in that locality. Burden of Educating Among the major cost of illegal immigration statistics is the spending that went into educating the children of illegal aliens constitutes single largest cost to taxpayers. Its annual price tag is $52 billion. All those costs are absorbed by state and local governments. It has been found that most illegal aliens do not pay income taxes. Even among those who do, the bulk of the revenues collected are refunded to the aliens themselves when they file tax returns. Marginal Tax Collections Tax collections from the illegal aliens would increase only marginally, and the new legal status would make them corner all Social Security retirement benefits and jeopardize the future of the already shaky system. The amnesty would also mean large population of illegal aliens becoming eligible for many social assistance programs targeted at low-income populations for which they are not eligible. That is why the fear that the overall result would be an accentuation of the enormous fiscal burden stands true. Immigration Tax laws Immigration tax laws in the US are designed to enhance tax compliance. This is because, not filing taxes is considered a criminal offence in the US and can invite deportation from the country. Disregarding tax laws will jeopardize the immigration status ultimately. So there is an interplay between immigration status and filing of taxes. As per law, filing tax returns depends on the applicant’s class as a tax resident. Coming in the ambit of tax residents is permanent residents and holders of green cards. Not all non-immigrant visa holders are tax residents. For illegal immigrants this is the great opportunity to use Immigration tax laws positively. For those working it is a good idea to file income tax returns as the employer might be deducting taxes from that worker’s wages and claiming a tax refund in a legal matter is absolutely legitimate. For more information about Current Immigration Policy in the US, please visit www.immigranttaxgroup.org
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