Illegal immigration can be quite taxing for the US government!

The critics cite that the undocumented workers do not contribute much to the local economies where they work or live. Instead they send money back to their home countries.

President of the Pennsylvania Building and Construction Trades Council Frank A. Sirianni says that because of such illegal immigrants there has been a significant loss in the local community tax base. This is not totally true. Few studies have discovered the true impact of illegal immigrants on the local economy.

Many experts and the associate professor of economics Dr. Roger White at the Franklin and Marshall College say that the illegal immigrants end up paying more taxes than what is believed by many people. According to White Many of these undocumented immigrants spend a good deal money to make fake legal documents using someone else’s Social Security Number. This fake legal document creation calls for tax payment. Congressional Budget Office report in 2007 showed that around 50-75% of the unauthorized immigrants paid federal, state and local taxes.

Dr. Mike Gumpper, the economics professor at the Millersville University said that although the illegal immigrants pay taxes on Social Security Number they do not use benefits like medical care or social security. The fear of getting detected keeps even the qualified away from refund.

Center for Immigration Studies presented a report in 2004 based on the cost thrust on the federal government because of the illegal immigrants.

Based on this report the US census data showed that the households of illegal immigrants cost the government $26.4 billion, while the tax coming from such households amounted to $16 billion in 2002. The federal government has to face the deficit of the staggering $10.4 billion. Any household of an illegal immigrant created the federal deficit of $2,750 on an average.

Since the illegal immigrants are poorly educated they do not earn much or are reluctant to work. The result is quite obvious, the lowering of the tax base. The fear of getting caught keeps them on minimalist living away from all government services. The federal government spends money on medical care, food, the treatment of those without insurance, the maintaining of the courts, schools, colleges, prisons etc.

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