July 31, 2024

Florida Should Welcome Immigrants

New research confirms that immigrants without a documented status still contribute economically, despite most not being eligible for any public services or benefits. Many immigrants without a documented status pay taxes — primarily via sales and excise taxes on purchases.[1] The Institute on Taxation and Economic Policy’s (ITEP’s) latest report details the state and local taxes immigrants without a documented status contribute throughout the United States. Nationwide, ITEP finds that for every 1 million undocumented immigrant residents, revenue for public services increases by $8.9 billion.

Undocumented Immigrants Paid $1.8 Billion in Florida Taxes in 2022

ITEP also finds that 64 percent of the nation’s local and state tax paid by immigrants without a documented status come from just six states, including Florida. Specifically, Florida collected the fourth-highest amount in taxes from undocumented immigrants in 2022 — $1.8 billion from an estimated 747,000 residents. 

Moreover, due in large part to Florida’s inequitable tax code, immigrants without a documented status pay 7.9 percent of their income, on average, toward state and local taxes, while the wealthiest 1 percent of residents pay 2.7 percent. This means hundreds of thousands of everyday people are paying more than their share to public services they cannot even access; meanwhile, those with the most to give — and the most to gain — pay the least as a share of their income.

Welcoming Immigrants Would Allow Floridians to Contribute Further

ITEP’s report also finds that if the 747,000 undocumented immigrants paying state and local taxes were granted legal status (i.e., became documented), Florida would have seen an additional $154.3 million in state and local tax revenue in 2022 alone. (See Table 1.)

Additional research from Immigration Research Initiative (IRI) shows the longer “new arrivals” are in the country, the more income they bring in, benefitting economies with their increased spending power. (IRI defines new arrivals as immigrants with and without a documented status, those who do not speak English very well, and who have been in the United States for less than two years.)

Table 2 shows when new arrivals are in Florida for five to 10 years, their median wage is $7,055 higher than those who have been in the state for two years or fewer (a 35-percent increase). In turn, new arrivals who remain residents for 21 or more years have a median wage that is $8,388 higher than those who have been residents for five to 10 years (a 31-percent increase).

Collectively, ITEP and IRI’s research shows how Florida already benefits (and could benefit further) from all its immigrants, regardless of status.

All Floridians Should Have the Chance to Thrive 

Harsh anti-immigrant policies like 2023’s SB 1718 — which Florida is still paying for — do more harm than good. They waste state dollars and cause residents to live in fear and threat of constant discrimination. Instead, the Sunshine State should be welcoming immigrants (no matter their status) like it does all other new arrivals to the state — tourists and new residents alike. While one such policy to do that, the Welcoming Florida Act, was filed, it did not pass in the 2024 session.

Florida residents are diverse, and they are neighbors, coworkers, and friends. Even Floridians who do not contribute through work (e.g., children, retirees) benefit society in other ways, have inherent value, and deserve to feel safe and included in their communities.

Note

[1] ITEP’s July 2024 report notes that “At the state and local levels, slightly less than half (46 percent, or $15.1 billion) of the tax payments made by undocumented immigrants are through sales and excise taxes levied on their purchases. Most other payments are made through property taxes, such as those levied on homeowners and renters (31 percent, or $10.4 billion), or through personal and business income taxes (21 percent, or $7.0 billion).”

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