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  • Essay / The Contribution of Undocumented Immigrants to the American Economy

    Have you ever wondered how undocumented immigrants contribute to the American economy? Are they really coming to this country just to live off government assistance? My husband entered this country as an undocumented immigrant from Mexico in 2005. He, like all other immigrants, came in search of the “American dream.” The day after his arrival, he started working three jobs. One morning at a powder coating company and in the evening he worked in two restaurants. He was paid by company checks from each of the places he worked. Like everyone else, federal, state, Social Security, and Medicare taxes were deducted from his income. He didn't know what it was. He was just happy to be paid in American dollars. He often wondered where the deducted money went. Who was reaping the rewards of his and all the other millions of undocumented workers' hard work? Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay There are currently 10.5 to 12 million undocumented immigrants living in the shadows of the United States of America, according to the Department of Homeland Security. California, Florida, Georgia, Illinois, New York, New Jersey, and Texas have the highest numbers of undocumented immigrants. According to the National Academies of Sciences, Engineering and Medicine, undocumented immigrants pay an average of $11.64 billion in state and local taxes annually. About 8% of their income goes to taxes and they will have contributed about $80,000 more in taxes than government services used over their lifetime. Undocumented immigrants have contributed up to $300 billion to the Social Security Trust Fund. If immigrants' contributions stopped, that would mean Social Security payments would stop by 2037. Imagine working hard every day just to make ends meet for your family, and your contributions go toward someone's retirement another one. In 2010 alone, undocumented people paid $13 billion into retirement accounts and received only $1 billion in return. When employers issue W-2 forms containing Social Security numbers that do not match anyone registered, the agency routes the documents to what is called the Earnings Suspension File, where it is held until people can prove that their salary was theirs, allowing them to one day receive retirement benefits. Many of these forms were filled out by employers on behalf of some of Social Security's most unlikely funders: undocumented immigrants. Undocumented workers pay billions in taxes for retirement benefits they will likely never receive. In July 1996, the ITIN (Individual Taxpayer Identification Number) was created by the Internal Revenue Services. It is for foreign nationals and others who are not eligible for a Social Security number (SSN) and can pay the taxes they are legally required to pay. According to the IRS, ITIN filers pay $9 billion in payroll taxes each year. The United States of America is a nation full of immigrants. Their journey and our success simply would not be possible without the generations of immigrants who have come to our country from all corners of the world. According to the Small Business Administration, immigrants are 30% more likely to start a business in the United States than non-immigrants, and 18% of all owners.