Undocumented Immigrants in Nevada Contribute $500 Million in Taxes in 2022

Undocumented Immigrants in Nevada Contribute $500 Million in Taxes in 2022

A recent study conducted by the Institute on Taxation and Economic Policy revealed that undocumented immigrants in Nevada contributed over $500 million in state and local taxes in 2022. Surprisingly, this amount surpassed the tax contributions made by the state’s top 1 percent of household incomes.

Despite their significant tax contributions, undocumented immigrants are still unable to access many of the social services funded by their taxes. This creates a challenging situation where they are contributing financially to the system but not receiving the same benefits in return.

The study estimated that Nevada’s undocumented population, which consists of nearly 170,000 individuals, paid a substantial amount in taxes. Most of these tax payments came from property or sales tax since Nevada does not have a personal income tax. Additionally, many undocumented workers pay into Social Security but are ineligible to receive benefits from the program.

One of the key findings of the study was that if undocumented immigrants were granted legal employment status, they could contribute an additional $585 million annually in state and local taxes. This highlights the potential economic benefits of providing a pathway to legal status for these individuals.

It is important to note that the study did not account for the contributions of Nevada’s 11,000 Deferred Action For Childhood Arrivals (DACA) recipients. Therefore, the overall tax contributions of the undocumented population in Nevada may be even higher than reported.

Despite the financial contributions of undocumented immigrants, there are still barriers and challenges that they face, such as low wages and limited access to certain benefits. These issues can have long-lasting effects on immigrant families’ economic stability and well-being.

Efforts to expand Medicaid coverage to undocumented individuals in Nevada have been met with opposition, with Governor Joe Lombardo vetoing a bill due to concerns about increased costs to the state. This highlights the ongoing debate and challenges surrounding access to healthcare and social services for undocumented immigrants.

Looking ahead, there is a growing recognition of the economic contributions that immigrants, both authorized and undocumented, make to the U.S. economy. As they continue to play a significant role in the workforce and contribute to the nation’s GDP, there is a need for policies that acknowledge and support their contributions while addressing the challenges they face.