How US Immigrants Working Illegally Help Fund Programs They Can't Access, Like Social Security and Medicare

Immigrants living in the US illegally play an unexpected yet vital role in funding programs such as Social Security and Medicare, even though they do not have access to these benefits. Many of them contribute tax revenue through Individual Taxpayer Identification Numbers (ITINs), which the IRS issues to enable tax compliance. In 2022 alone, undocumented immigrants paid an estimated $96.7 billion in taxes, vital to maintaining the financial health of federal and state governments. This financial contribution is increasingly critical given the declining birth rate and the growing population of retirees in the U.S. As of July 2023, more than 11 million undocumented immigrants reside in the country, with over 8 million actively participating in the workforce. Studies suggest that removing these individuals could lead to a $20 billion decrease in annual tax revenue, exacerbating the financial challenges facing the Social Security system. Cecilia Menjívar, a sociology professor at UCLA, noted that immigrant workers contribute more in taxes than they receive in benefits, highlighting their significance in supporting local economies and essential services. Additionally, the ITIN system, introduced in the 1990s, allows these workers to establish a work history and build a case for potential citizenship. As discussions around immigration policies and potential mass deportations continue, the implications for both the economy and vital public programs will be profound.