Undocumented immigrants contribute millions in taxes to Maine economy, new study finds
A new national study sheds light on the economic contributions of people who have immigrated to the U.S., often working or running businesses for years, but who do not have proper documentation of their legal status within the country.
Undocumented immigrants in Maine paid $15.6 million in state and local taxes during 2022, according to the study, which was published Tuesday and conducted by the Institute on Taxation and Economic Policy. The analysis found the economic contribution of these Mainers would have been $19.8 million if they had been granted work authorizations.
The institute is a nonprofit, nonpartisan tax policy organization based in Washington, D.C.
The study indicates that in Maine, 31% of tax contributions from undocumented immigrants are through sales and excise taxes, 38% are through property taxes and 28% are through personal or business income taxes.
“With a plateauing workforce and an aging population, Maine should welcome everyone who wants to work,” said Garrett Martin, president and CEO of the Maine Center for Economic Policy, an Augusta think tank. “What this report quantifies is what we’ve known all along: All immigrants, including those who are undocumented, contribute to Maine’s economy and to our public finances.
“All who live in Maine benefit from the tax contributions of immigrants,” he continued. “One of the best ways we can ensure employers have the workers they need and Maine has the revenue to fund our needs is to give all New Mainers the legal authority to live and work here as quickly as possible.”
Nationally, the study showed that undocumented immigrants contributed $96.7 billion in federal, state and local taxes during 2022. Of this, $37.3 billion went to state and local governments.
The study also said that providing access to work authorization to all current undocumented immigrants would increase their tax contributions by $40.2 billion per year, to $136.9 billion.
“This study is the most comprehensive look at how much undocumented immigrants pay in taxes. And what it shows is that they pay quite a lot, to the tune of nearly $100 billion a year,” said Marco Guzman, senior policy analyst and co-author of the study. “The bottom line here is that regardless of immigration status, we all contribute by paying our taxes.”
The Institute on Taxation and Economic Policy said that its study does not quantify the broader effects from the increased economic activity created by undocumented immigrants. Taking the economic ripple effects into account would likely reveal an even larger impact from the population, according to the institute.
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