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WaPo: Government Could Lose Billions by Discouraging Illegals From ‘Engaging in the Tax System’

Oops! The Washington Post once again mistakenly wrote "immigrants" in its headline where it meant to say "illegal aliens." The post reports that "experts estimate that the IRS stands to lose up to $479 billion over the next decade as immigrants face deportation and disengage from the formal economy." Wait, can you do that? We already paid our taxes; we didn't know you could just "disengage from the formal economy." The Post also calls it "willingly engaging in the tax system," and if the Trump administration allows the IRS to share data with ICE, that will discourage undocumented immigrants from filing tax returns.

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Did the experts estimate how much the federal government will spend over the next decade to feed, house, and educate these undocumented immigrants?

Marissa J. Lang reports:

Immigrants who are not legally authorized to work in the United States still do so — and many opt to pay into the tax system through a federal individual taxpayer identification number (ITIN) that is available to people who don’t have Social Security numbers. Federal data shows that as of 2021, there were 5.4 million active ITIN users, though not all are assigned to undocumented immigrants.

Historically, having a record that shows a willingness to work within the system, pay taxes and contribute meaningfully to the community has benefited immigrants as they apply for legal status in the U.S.

Now, an overriding fear of what could happen with such exposure has overtaken the desire to demonstrate a long-term pattern of good behavior, experts and tax professionals said.

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Wow, many opt to pay into the tax system. That's what The Post calls "good behavior." And scaring away these immigrants could cost hundreds of billions.

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It's nice that people living and working here illegally have the option to "opt in" or "engage with" the tax system. Who are the experts The Washington Post consulted with on this story? The Cato Institute?

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