Rantz Fact Check: Do illegal immigrants really pay more in taxes than wealthy American citizens?

Seattle congresswoman and Squad grandmother Pramila Jayapal made an eyebrow-raising claim about how much illegal immigrants pay in taxes. It’s intended to both demonize the wealthy and offer positive press for illegal immigrants to persuade you against asking for border security enforcement.

“In 40 states, undocumented immigrants pay MORE in taxes than the top 1% of income earners,” Jayapal posted on X. “It’s long past time to strengthen pathways to citizenship for the millions of undocumented Americans who contribute *so much* to our country.”

It’s such an insane “fact” that she includes an emoji of a head exploding! But before you let your head explode, let’s give it a Jason Rantz Fact Check.

What’s the basis for Pramila Jayapal’s claim about illegal immigrants paying so much in taxes?

Pramila Jayapal intentionally doesn’t include a source for her claims. As is often the case with the Seattle congresswoman, it’s because she’s being dishonest.

The congresswoman is referencing the Institute on Taxation and Economic Policy (ITEP), a left-wing tax policy organization. This past summer, ITEP reported that illegal immigrants contributed about $96.7 billion in federal, state, and local taxes in 2022.

Despite Jayapal’s claim, the top 1% of income earners paid more in federal taxes alone, than the combined total paid by illegal immigrants. And the top earners contribute a disproportionate amount of their income in taxes.

In 40 states, undocumented immigrants pay MORE in taxes than the top 1% of income earners 🤯

It’s long past time to strengthen pathways to citizenship for the millions of undocumented Americans who contribute *so much* to our country.

— Pramila Jayapal (@PramilaJayapal) September 18, 2024

Top income earners pay way more than illegal immigrants

In 2022, the top 1% paid 45.8% of all federal income taxes, while earning about 26.3% of the total national income, according to the National Taxpayers Union Foundation. This demonstrates the progressive nature of the tax system, where the highest earners contribute a disproportionate share of taxes compared to their income.

And while illegal immigrants typically pay 7-8% of their income in state and local taxes, according to ITEP, the top 1% of earners faced an average federal effective tax rate of 25.93%, according to the Tax Foundation.

It’s harder to gauge what the top earners paid on the state level because the taxes vary by state. But just looking at the federal taxes is enough to explain that Jayapal is wrong.

It’s obviously true that illegal immigrants pay taxes, such as sales taxes when they purchase items in areas that have them. But Pramila Jayapal is not accurately quoting the ITEP report.

More from Jason Rantz: Hey Seattle media, do you plan on fact-checking Bob Ferguson at some point?

The left-wing tax trick

Jayapal used a go-to talking point intended to confuse their audience. ITEP didn’t measure total taxes paid, as Jayapal suggested.

“In a large majority of states (40), undocumented immigrants pay higher state and local tax rates than the top 1 percent of households living within their borders,” the report states (emphasis mine).

Sometimes you hear a version of Jayapal’s talking point that is more accurate, but incredibly misleading. How often have you heard someone say a teacher or nurse pays a higher tax rate than a millionaire CEO? It’s a meaningless point. Even if the tax rate on the 1% top income earners was 1%, they’d be paying out more in taxes than income earners in other categories.

Consider Pramila Jayapal’s claim fact-checked: it’s false.

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