Immigrants in the country illegally paid nearly $100 billion in taxes in 2022, according to a report by the Institute on Taxation and Economic policy. But that source of government revenue may soon taper off as the Trump administration pushes the Internal Revenue Service to help it accelerate its program of mass deportations. The Washington Post reported Friday that the IRS rejected a request from Homeland Security to reveal the addresses of 700,000 people the agency suspects of being undocumented, an action that could violate taxpayer privacy laws. But the Post went on to report the new acting IRS commissioner Melanie Krause is (surprise) more amenable to complying with the request to turn over the taxpayer data of immigrants.

Undocumented immigrants paid nearly $97 billion in federal, state and local taxes in 2022, according to a July 2024 report, opens new tab by the Institute on Taxation and Economic Policy (ITEP), which used data on taxpayers with ITINs to estimate tax revenue.

Over the coming months, President Donald Trump and his congressional allies will try to rewrite the nation’s tax laws, with promises of cuts for companies, workers and retirees. There are trillions of dollars on the line with those changes. But a certain segment of Americans will be focused on just one question: How much of their state and local taxes (SALT) will they be allowed to deduct?

During his presidential campaign, Donald Trump promised to end federal taxation of Social Security retirement benefits. This isn’t something he can do unilaterally. White House press secretary Karoline Leavitt told reporters that the president and Republican lawmakers have discussed including this move in a budget package. But so far in his second term, President Trump has made some changes on his own that affect Social Security either directly or indirectly. Here are four things you should know.

President Trump on Wednesday signed an executive order aimed at eliminating federal benefits for undocumented migrants in the United States, describing the benefits as an improper use of taxpayer resources.

On his first day in office, President Donald Trump signed a flurry of executive orders, including one aimed at “the efficient and expedited removal of aliens from the United States.” It calls for the Department of Homeland Security to expand its reach and deport “removable aliens” in every state. Those efforts have run into obstacles – most notably a lack of detention space and funding – but if successful, mass deportations could have unintended consequences. For one, they could mean less money for already meager Social Security trust funds.

While there is widespread support for Trump’s policies, it could have a negative impact on retirees across the U.S. by reducing the pool of funding available to pay benefits, increasing costs and contributing to an increase in inflation.

For most of the past decade, progressives presented the battle over immigration as simply a fight against Republican cruelty, racism and xenophobia. Such messaging does not amount to a political strategy. By 2024, Joe Biden and Kamala Harris seemed to stop trying to win the debate. As border-state governments grappled with newcomers, Republican leaders saw a crisis they could seize and weaponize — while Democratic leaders offered no compelling case of their own.

As terrifying and probably illegal as Elon Musk’s tech-bro holy war against the federal government has been, it’s only Phase 1. Really, the spectacle of the past few weeks sets Donald Trump and Musk up for what they almost certainly want much more: massive tax cuts for the wealthy.

Gov. Greg Abbott, in his bid to curb Texas’ high property taxes, wants Texas voters to have the final say on any property tax hike. Local governments that collect property taxes — including cities, counties and school districts — should have to win approval from a two-thirds majority of voters if they want to raise their tax rates, Abbott said.