Undocumented Immigrants Pay $198.9 Million in Taxes in Wisconsin

By Liliana Barrera & William Parke-Sutherland

Immigrants have been and continue to be vital to our communities. Nearly 300,000 immigrants in Wisconsin—about 76,000 of whom are undocumented—have put down roots and raised families in communities across our state for generations. But for far too long, many state and federal lawmakers have made life harder for our immigrant communities, ignoring employer wage theft and making it more difficult for undocumented people to obtain legal status or citizenship in the US. Undocumented immigrants contribute in many ways to Wisconsin, and new data backs this up. Workers who are undocumented have their wages withheld to pay for programs that support millions of children and families, yet policymakers continue to intentionally and systematically exclude them.

Recent data from the Institute on Taxation and Economic Policy (ITEP) exposes the glaring truth that, despite the many economic and social barriers systemic racism and exclusion create, undocumented immigrants paid a staggering $96.7 billion in federal, state, and local taxes in 2022. Here in Wisconsin, our undocumented neighbors paid $198.9 million in state and local taxes.

These taxes help maintain public schools, infrastructure, and projects that benefit children and families living in our state. However, tax paying immigrants are often blamed for societal problems and subjected to racist policies that dehumanize and disenfranchise them. The same individuals are also denied basic rights and access to the same public services their state taxes fund. Providing a path to citizenship for undocumented immigrants is a critical step toward rectifying this injustice.

Wages Stolen by Employers

Devious employers often exploit undocumented immigrants for their labor and steal their wages.  In Wisconsin, these greedy employers are rarely held accountable, thanks to weak wage theft laws and poor enforcement. Wage theft is a moral and financial issue rooted in racism. It immorally views immigrants as exploitable bodies rather than human beings with rights entitled to dignity. When employers steal wages, they strip immigrants of their rightful earnings while also negating their obligation as employers to pay their fair share in taxes. Wage theft also undermines the labor market as a whole, resulting in suppressed wages and worse working conditions for all workers. 

Granting Residency or Citizenship 

If federal decision makers granted current undocumented immigrants residency or citizenship in Wisconsin, their tax contributions would increase by $48 million per year, from about $199 million per to about $247 million per year. This increase would give Wisconsin more tax revenue to invest in better schools and healthier communities. As a society, we have an obligation to recognize and honor the contributions of immigrants and ensure they have the opportunities and protections they deserve. This is right for Wisconsin and aligns with our values of fairness and justice. 

Source: Institute on Taxation & Economic Policy

Immigrants are contributing to and have put down roots in communities across Wisconsin. By expanding driver licenses for all, ensuring language access, and actually enforcing wage theft laws, we are choosing to prioritize the well being of all families living in Wisconsin. 

Granting citizenship to undocumented immigrants would increase their wages, improve their working conditions, and promote greater economic stability. 

Read our immigration series to learn how we are combating anti-immigrant narratives while collaborating with grassroot organizations to address systemic barriers.

Above art: By Melanie Cervantes