Massachusetts Budget & Policy Center: Ending the Tax Penalty Against Working Immigrants

Immigrants are a large and vital part of Massachusetts’ workforce. Over a quarter of Massachusetts workers were born in another country.¹ Due in part to the aging of our native-born population, almost half of employment growth since 2010 has been foreign-born.² Immigrants are more likely than native-born residents to be employed and they have become increasingly important to the economy as the shortage of workers has become a leading constraint on Massachusetts’ economic growth.³

In recent years, lawmakers have enacted some important legislation helping Massachusetts residents, regardless of their immigration status, to take full part in commerce and civic life. Laws providing access to drivers’ licenses and in-state tuition, for instance, have opened opportunities that support employment and advance economic growth. Yet tens of thousands of workers, and their families, who pay taxes in Massachusetts are prevented from receiving the Earned Income Tax Credit (EITC) because they are ineligible for a Social Security Number. Extending eligibility to all workers filing taxes, regardless of their immigration status, would increase the impact of Massachusetts’ EITC, help expand economic opportunity, and support low- and moderate-income families struggling to afford Massachusetts’ high cost of living.

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