November 24, 2014

The Arizona Republic: Obama’s Action Should Increase Tax Collections

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Both Arizona’s Department of Revenue and the Joint Legislative Budget Committee said they have not estimated the tax and revenue impact of Obama’s executive action. However, the Institute on Taxation and Economic Policy, a Washington-based think tank, estimated last year that undocumented immigrants currently pay about $10.6 billion a year in state and local taxes around the country and more than $374 million a year in Arizona.

“Most of those are sales, excise and property taxes — taxes that don’t depend on citizenship status,” said Matt Gardner, the institute’s executive director.

The institute estimated that providing a legal presence to all the estimated 11 million undocumented immigrants in the country would boost state and local tax revenues by $2 billion a year and increase tax revenue in Arizona by about $54 million, most from gains in state income tax.

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