By in Rhode Island’s Future
For another way that undocumented immigrants contribute to the RI economy, CLICK HERE.Undocumented immigrants contribute $11.7 billion to state and local coffers each year, including $31.2 million in Rhode Island, according to a new study released by the Institute on Taxation and Economic Policy (ITEP). The study, Undocumented Immigrants’ State and Local Tax Contributions, also estimates that Rhode Island would gain more than $6 million under comprehensive immigration reform.
“This report shows that
undocumented immigrants are contributing to Rhode Island’s state and local
revenues through sales, property and income taxes” said Doug Hall, director of economic and fiscal policy
at the Economic Progress Institute.
“Regardless of their
immigration status, immigrants in Rhode Island make our economy stronger as
they spend to provide for the well-being of their families.”
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| In addition to state and local taxes, undocumented immigrants pay in approximately $12 billion into Social Security and Medicate for benefits they will probably never receive. |
“Given the current
rhetoric around immigrants, we need to ensure that all Rhode Islanders who are
not citizens – including those who are undocumented – feel safe in our state.
Not just because they contribute to our economy, like all residents, but
because it is the moral thing to do” said Rachel Flum, executive
director of the Economic Progress Institute.
The report found that
undocumented immigrants contribute $3.9 million in personal income taxes, $9.7
million in property taxes, and $17.6 million in sales and excise taxes to Rhode
Island’s economy.
The report shows that undocumented immigrants in Rhode Island
have an effective tax rate of 7.4 percent, compared to 6.3 percent for Rhode
Island’s wealthiest taxpayers. These tax contributions would be larger if all
undocumented immigrants were granted legal status under comprehensive
immigration reform.
“Good policy is informed
policy,” said Meg Wiehe, ITEP director of
programs. “Just as the horrendous impact of breaking up families under a mass
deportation policy should not be ignored, policymakers should not overlook the
significant contributions undocumented immigrants make to our state and local
revenues and the economy.”
“Keep in mind most state
and local taxes are collected from people regardless of immigration status,”
Wiehe added. “Undocumented immigrants, like everyone else, pay sales and excise
taxes when they purchase goods and services. They pay property taxes directly
on their homes or indirectly as renters. And, many undocumented immigrants also
pay state income taxes.”
Steve Ahlquist is an
award-winning journalist, writer, artist and founding member of the Humanists
of Rhode Island, a non-profit group dedicated to reason, compassion, optimism,
courage and action. The views expressed are his own and not necessarily those
of any organization of which he is a member. atomicsteve@gmail.com
and Twitter: @SteveAhlquist
