July 11, 2013

Santa Fe New Mexican: Immigration reform would boost state’s tax revenues by $6M

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(Original Post)

Posted: Wednesday, July 10, 2013 7:00 am
By Adele Oliveira
The New Mexican
A study released Wednesday by the Institute on Taxation and Economic Policy says comprehensive immigration reform would increase New Mexico’s annual tax revenue by $6 million and national tax revenue by $2 billion.
Titled “Undocumented Immigrants’ State and Local Tax Contributions,” the report also shows that New Mexico’s estimated 85,000 undocumented immigrants paid $86 million in taxes during 2010. Nationally, undocumented people contributed $10.6 billion in state and local taxes during that year.
“I think people might be surprised that [undocumented workers] are already paying $86 million into the system,” said Marcela Diaz of Somos Un Pueblo Unido, an immigrant advocacy organization. “The $6 million increase is important to note, but we’re already contributing to the tax base and are vital to the workforce in Santa Fe. The census shows that 14 percent of Santa Fe County is foreign-born.”
Two weeks ago, the Senate passed the Border Security, Economic Opportunity, and Immigration Modernization Act, which will now be heard by the House. Broadly, the bill aims to provide a path to legal status for the estimated 11 million undocumented immigrants currently living in the U.S.
“[Undocumented immigrants] currently pay property taxes on the local level, gross receipts tax and sales tax,” said Gerry Bradley, senior researcher and policy analyst for the nonprofit New Mexico Voices for Children, based in Albuquerque. “Some [undocumented immigrants] pay income tax using an ITIN [individual tax identification number], though not everybody does that. A lot of unauthorized workers have income taxes withheld, which means that they’re paying in and not getting anything back.”
“A lot of people think, ‘if they’re working illegally, how can they be paying taxes?’ ” Diaz said. She noted that many undocumented individuals opt to get ITINs because that allows them to get a savings account and establish credit, and the identification can be used to obtain a driver’s license.
Diaz said undocumented immigrants are contributing to Social Security, but many might not be able to access it when they get older, even if comprehensive reform passes. “The bill that the Senate passed had an amendment that said workers won’t get credit for Social Security taxes they put into the system [while working illegally],” she said. “That’s money our community put into the pot, and they should be able to access it.”
Diaz and Bradley agree that immigration reform would mean significant economic benefits for immigrant workers. At a community forum held by Somos earlier this year, citizens and elected officials heard testimonies from members of Somos’ United Workers Center of New Mexico.
“The No. 1 thing workers said was that legal status would expand their economic opportunities,” Diaz said. “Many said that they were denied promotions or raises because they lacked status.”
“If their status were authorized, immigrants could come out of the shadows and join the above-ground labor market,” Bradley said. “They’d get higher wages, which means higher taxes, and be in a better position to bargain [with employers]. They have very little leverage right now. And there’s a moral dimension: Workers and their families would not be living in fear of deportation anymore. That’s the main thing. It’s broader than just an economic issue.”
To view the ITEP’s report in its entirety, visit www.itepnet.org/immigration/.

Posted: Wednesday, July 10, 2013 7:00 am

By Adele Oliveira

The New Mexican

A study released Wednesday by the Institute on Taxation and Economic Policy says comprehensive immigration reform would increase New Mexico’s annual tax revenue by $6 million and national tax revenue by $2 billion.

Titled “Undocumented Immigrants’ State and Local Tax Contributions,” the report also shows that New Mexico’s estimated 85,000 undocumented immigrants paid $86 million in taxes during 2010. Nationally, undocumented people contributed $10.6 billion in state and local taxes during that year.

“I think people might be surprised that [undocumented workers] are already paying $86 million into the system,” said Marcela Diaz of Somos Un Pueblo Unido, an immigrant advocacy organization. “The $6 million increase is important to note, but we’re already contributing to the tax base and are vital to the workforce in Santa Fe. The census shows that 14 percent of Santa Fe County is foreign-born.”

Two weeks ago, the Senate passed the Border Security, Economic Opportunity, and Immigration Modernization Act, which will now be heard by the House. Broadly, the bill aims to provide a path to legal status for the estimated 11 million undocumented immigrants currently living in the U.S.

“[Undocumented immigrants] currently pay property taxes on the local level, gross receipts tax and sales tax,” said Gerry Bradley, senior researcher and policy analyst for the nonprofit New Mexico Voices for Children, based in Albuquerque. “Some [undocumented immigrants] pay income tax using an ITIN [individual tax identification number], though not everybody does that. A lot of unauthorized workers have income taxes withheld, which means that they’re paying in and not getting anything back.”

“A lot of people think, ‘if they’re working illegally, how can they be paying taxes?’ ” Diaz said. She noted that many undocumented individuals opt to get ITINs because that allows them to get a savings account and establish credit, and the identification can be used to obtain a driver’s license.

Diaz said undocumented immigrants are contributing to Social Security, but many might not be able to access it when they get older, even if comprehensive reform passes. “The bill that the Senate passed had an amendment that said workers won’t get credit for Social Security taxes they put into the system [while working illegally],” she said. “That’s money our community put into the pot, and they should be able to access it.”

Diaz and Bradley agree that immigration reform would mean significant economic benefits for immigrant workers. At a community forum held by Somos earlier this year, citizens and elected officials heard testimonies from members of Somos’ United Workers Center of New Mexico.

“The No. 1 thing workers said was that legal status would expand their economic opportunities,” Diaz said. “Many said that they were denied promotions or raises because they lacked status.”

“If their status were authorized, immigrants could come out of the shadows and join the above-ground labor market,” Bradley said. “They’d get higher wages, which means higher taxes, and be in a better position to bargain [with employers]. They have very little leverage right now. And there’s a moral dimension: Workers and their families would not be living in fear of deportation anymore. That’s the main thing. It’s broader than just an economic issue.”

To view the ITEP’s report in its entirety, visit www.itepnet.org/immigration/.

 


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