A New IRS-ICE Agreement Could Reduce Tax Revenue by $300 Billion Over the Next Decade
Earlier this month, the IRS and the Department of Homeland Security (DHS) forged an agreement to share taxpayer data with federal immigration officials. According to a partially redacted memorandum of understanding, Immigration and Customs Enforcement (ICE) "will come to the IRS with the names and address[es] of taxpayers that they believe have violated federal immigration laws," reported CNN.
The government has long encouraged undocumented immigrants who work in the United States to file their taxes. But the new agreement means that someone who pays his taxes in good faith could attract unwanted scrutiny and be at greater risk of deportation.
Between 50 percent and 75 percent of undocumented immigrants pay taxes via federal income and/or payroll taxes, the Congressional Budget Office found in 2007. Undocumented immigrants are required to pay taxes, and doing so can help in their immigration cases down the line. The IRS has long "sought to keep information submitted by undocumented immigrants confidential," so the IRS-ICE agreement marks "a fundamental departure from decades of practice at the tax collector," reported The New York Times.
If the agreement between ICE and the IRS discourages undocumented immigrants from paying their taxes, the U.S. could lose billions in tax revenue. In 2022, undocumented immigrants paid $96.7 billion in federal, state, and local taxes, according to the Institute on Taxation and Economic Policy (ITEP), a left-leaning economic think tank. Over one-third of those tax dollars "go toward payroll taxes dedicated to funding programs that these workers are barred from accessing," including Social Security and Medicare, reported ITEP.
The Budget Lab, a nonpartisan policy research center at Yale University, estimates that the IRS-ICE agreement could cause federal revenues to "come in roughly $300 billion lower" over the next decade. In addition to becoming more hesitant to file their individual income taxes, undocumented immigrants might increasingly take under-the-table jobs.
Undocumented immigrants now have to weigh the risks of filing their taxes against the risks of not filing them. On one hand, the IRS could transmit their personal information to federal immigration authorities, potentially leading to their arrest and deportation. On the other hand, "failing to file taxes can have serious consequences, from penalties for tax evasion to negative impacts on immigration cases—including naturalization applications," wrote Steven Hubbard and Micaela McConnell for the American Immigration Council, a pro-immigration research organization.
"This will be a targeted agreement that will go specifically after individuals who do perpetuate violence and enact crimes in this country," said DHS Secretary Kristi Noem last week. (That undersells how broadly the agreement may be applied.) Noem also stressed that "the American people need to be confident in the fact that their personal privacy will be protected."
But increased data sharing between federal agencies always carries privacy risks. "If you are a U.S. citizen, your sensitive tax data could also be compromised by this short-sighted policy," argued immigration attorney Maurice Goldman. There's another major potential cost that native-born Americans could face: Immigrants, including undocumented ones, play an important role in reducing federal budget deficits and propping up programs like Social Security.
With over $28 trillion in publicly held debt, the last thing the country needs is a policy that scares undocumented immigrants out of paying taxes—and punishes them for doing something the government has encouraged them to do for decades.
The post A New IRS-ICE Agreement Could Reduce Tax Revenue by $300 Billion Over the Next Decade appeared first on Reason.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Marines arrive in LA under Trump orders as protests spread to other cities
By Brad Brooks, Jorge Garcia, Phil Stewart and Idrees Ali LOS ANGELES (Reuters) -Hundreds of U.S. Marines arrived in Los Angeles overnight and more were expected on Tuesday under orders from President Donald Trump, who has also activated 4,000 National Guard troops to quell protests despite objections from California Governor Gavin Newsom and other local leaders. The city has seen days of public outrage since the Trump administration launched a series of immigration raids on Friday, though local officials said the demonstrations on Monday were largely peaceful. About half of the roughly 700 Marines that Trump ordered to Los Angeles arrived on Monday night, and the remaining troops will enter the city on Tuesday, a U.S. official told Reuters. The U.S. military did not immediately respond to a request for comment. Los Angeles Mayor Karen Bass told KABC that more than 100 people had been arrested on Monday but that the majority of protesters were nonviolent. Over the weekend, protesters threw rocks and other objects at officers and vehicles and set several cars ablaze. Police responded by firing projectiles like pepper balls as well as flash bang grenades and tear gas. Trump has justified his decision to deploy active military troops to Los Angeles by describing the protests as a violent occupation of the city, a characterization that Newsom and Bass have said is grossly exaggerated. Newsom said that Trump's deployment of National Guard troops has only inflamed the situation and made it more difficult for local law enforcement to respond to the demonstrations. In a statement on Monday, Los Angeles Police Chief Jim McDonnell said the department had not been notified that any Marines were traveling to the city and that their possible arrival "presents a significant logistical and operational challenge" for police. Trump's decision to mobilize 700 Marines based in Southern California escalated his confrontation with Newsom, who filed a lawsuit on Monday asserting that Trump's deployment of Guard troops without the governor's consent was illegal. The Guard deployment was the first time in decades that a president activated the Guard absent a request from a sitting governor. While the Marines are only tasked with guarding federal property temporarily until the full contingent of 4,000 Guard troops arrives, the use of active military to respond to civil disturbances is extremely rare. "This isn't about public safety," Newsom wrote on X on Monday. "It's about stroking a dangerous President's ego." The top Democrat on the Senate Armed Services Committee, Senator Jack Reed, said he was "gravely troubled" by Trump's deployment of active-duty Marines. "Since our nation's founding, the American people have been perfectly clear: we do not want the military conducting law enforcement on U.S. soil," he said. In a post on Tuesday morning on Truth Social, Trump claimed Los Angeles would be "burning to the ground right now" if he had not deployed troops to the city. DEMONSTRATIONS AND ARRESTS The raids are part of Trump's sweeping immigration crackdown, which Democrats and immigrant advocates have said are indiscriminately breaking up families. U.S. Homeland Security Secretary Kristi Noem pledged on Monday to carry out more operations to round up suspected immigration violators. Trump officials have branded the protests as lawless and blamed state and local Democrats for protecting undocumented immigrants with sanctuary cities. Hundreds of demonstrators gathered on Monday outside a federal detention center in downtown Los Angeles where immigrants have been held, chanting "free them all" and waving Mexican and Central American flags. National Guard forces formed a human barricade to keep people out of the building, and late on Monday, police began dispersing the crowd using gas canisters and arrested some protesters. At dusk, officers had running confrontations with protesters who had scattered into the Little Tokyo section of the city. As people watched from apartment patios above street level and as tourists huddled inside hotels, a large contingent of LAPD and officers and sheriff's deputies fired several flash bangs that boomed through side streets along with tear gas. Protests spread to neighboring Orange County on Monday night after immigration raids there, with demonstrators gathering at the Santa Ana Federal building, according to local officials and news reports. Protests also sprang up in at least nine other U.S. cities on Monday, including New York, Philadelphia and San Francisco, according to local news reports. In Austin, Texas, police fired non-lethal munitions and detained several people as they clashed with a crowd of several hundred protesters.
Yahoo
17 minutes ago
- Yahoo
How viral images are shaping views of L.A.'s immigration showdown
As protesters and police officers clashed in the streets of Los Angeles, a parallel conflict raged on social media, as immigration advocates and President Donald Trump's allies raced to shape public opinion on the impacts of mass deportations on American life. The sprawling protests against Immigration and Customs Enforcement raids were captured from all angles by cellphones and body cameras and streamed in real time, giving a visceral immediacy to a conflict that led to more than 50 arrests and orders from the Trump administration to deploy the National Guard. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. Amateur videographers and online creators shared some of the mayhem's most-talked-about videos and images, often devoid of context and aimed at different audiences. Clips showing officers firing less-lethal rounds at an Australian journalist or mounted police directing their horses to stride over a sitting man fueled outrage on one side, while those of self-driving Waymo cars on fire and protesters holding Mexican flags stoked the other. The protests have become the biggest spectacle yet of the months-long online war over deportations, as Trump allies work to convince Americans that the issue of undocumented immigration demands aggressive action. But immigrant families and advocates have also been winning attention, and seeking public support, through emotional clips of crying families grappling with removal orders, anti-ICE gatherings and young children in federal custody. The messaging war comes at a time of polarized public sentiment over Trump's immigration policies. An Associated Press-NORC Center for Public Affairs Research poll in April found that roughly half the country believed Trump's deportations had gone too far, while the other half thought his actions were about right or hadn't gone far enough. 'To advance your side of the story, you need a piece of content that the algorithm likes. You need something that really grabs people's attention by the throat and doesn't let it go,' said Laura Edelson, an assistant professor at Northeastern University's Khoury College of Computer Sciences. 'If you're on the pro-ICE side of this, you need to find visual images of these protests that look really scary, look really dangerous because that's what's going to draw human attention,' she added. But if 'you don't think that ICE should be taking moms away from their families and kids, you're going to have a video that starts with a crying child's face.' A White House official, speaking on the condition of anonymity to discuss internal plans, said Trump's digital strategists were following the president's lead by spotlighting images of destruction while insisting that he would always intervene in moments of unrest. The White House, which has said the ICE deportations are necessary to solve a national crisis, on Sunday posted an Instagram photo of Trump and a warning that looters and rioters would be given 'no mercy.' 'We're obviously following the president's direction. He is driving the message through his posts and his comments to the press,' the official said. 'We are definitely playing offense here. We are once again boxing the Democrats into the corner of defending criminal illegal aliens.' The unrest and its online propagation also heightened activity around projects like People Over Papers, a crowdsourced map for tracking the locations of ICE officers. Reports flooded in as the clashes continued, said Celeste, a project organizer in L.A. who spoke on the condition that her last name not be used for fear of government retribution. 'I haven't slept all weekend,' she said. She added, however, that she worried violent imagery from the ground could hurt the protesters' cause. She said she planned to start making Spanish-language videos for her 51,000 TikTok followers, explaining to skeptics that the violence isn't reflective of the protests, which she sees as necessary to counter ICE's agenda. The L.A. unrest followed weeks of online skirmishes over deportations, some of which have been touched off by the White House's strategy to lean into policy fights with bold and aggressive messaging. The White House last month posted a video that it said showed an 'EPIC takedown of 5 illegal aliens' outside a home improvement store and included an ICE hotline to solicit more tips. The clip, recorded by ICE agents' cameras, was liked 68,000 times but also drew criticism from commenters, who called it 'disturbing' and said this 'isn't a reality show.' After a similar ICE raid on Saturday outside a Home Depot in Paramount, a predominantly Latino suburb of L.A., witnesses sent out alerts on social media, and protesters raced to the scene. Within hours, the Trump administration called for the deployment of 2,000 National Guard troops to neutralize the unrest. On his Truth Social account a week earlier, Trump celebrated the Supreme Court clearing the way for the removal of some immigrants' legal protections by posting a photo of a jet-filled sky with the phrase, 'Let the Deportations Begin!' The White House has also posted stylized mug shots of unnamed immigrants it said were charged with heinous crimes. 'I love this version of the white house,' one commenter said, with a cry-laugh emoji. 'It feels like a movie every day with President Trump.' During the protests, the administration has worked with new-media figures and online influencers to promote its political points. Phil McGraw, the TV personality known as Dr. Phil who now runs the conservative media network Merit Street, posted an exclusive interview with border czar Tom Homan and embedded with ICE officers last week during L.A. raids, as the company's spokesperson first told CNN. Some top administration officials have worked to frame the protests in militaristic terms, with White House Deputy Chief of Staff Stephen Miller on Saturday sharing a video of the protest and calling it 'an insurrection against the laws and sovereignty of the United States.' Others, like Vice President JD Vance, have treated it as a chance for dark jokes. When posters on X said Vance could do the 'funniest thing ever' by deporting Derek Guy, a prominent menswear commentator who discussed how his family had been undocumented after fleeing Vietnam, the vice president on Monday posted a brief clip of Jack Nicholson nodding with a sinister grin. Some far-right influencers urged their followers to identify people caught on camera during the civil unrest. In one X post with more than 29,000 likes, the account End Wokeness shared a video of masked figures throwing rocks at police from an overpass and said, 'These are insurrectionists trying to kill cops. Make them famous.' In more left-leaning online spaces, some posters watching from the sidelines offered advice on how protesters could best position their cause to the rest of the world. On the r/ICE_raids subreddit, some posters urged L.A. protesters to stop carrying non-American flags. It's 'adding ammo to ICE's justification,' one poster said, attaching a screenshot of a Homeland Security post showing masked protesters with Mexican flags. Many accounts, knowingly or unknowingly, shared images that warped the reality of what was happening on the ground. An X account with 388,000 followers called US Homeland Security News, which is not affiliated with DHS but paid for one of X's 'verified' blue check marks, posted a photo of bricks that it said had been ordered to be 'used by Democrat militants against ICE agents and staff!! It's Civil War!!' The photo actually originated on the website of a Malaysian construction-supply company. The post has nevertheless been viewed more than 800,000 times. On Sunday night, California Gov. Gavin Newsom's X account tried to combat some of the misinformation directly, saying a viral video post being passed around as evidence of the day's chaos was actually five years old. Even before the L.A. protests, the increased attention on ICE activity had driven a rush of online organizing and real-world information gathering, with some people opposed to mass deportations tracking the movements of ICE officers with plans to foil or disrupt raids. In one viral TikTok post last week, a Minneapolis protester marching in a crowd outside the site of a rumored ICE raid said he had learned of it from Reddit, where a photo had been posted of Homeland Security Investigations officers outside a Mexican restaurant. The local sheriff's office later told news crews that the operation was not an immigration-enforcement case and that no arrests had been made. Some online creators treated the L.A. clashes as a prized opportunity for viral content. On Reddit, accounts with names like LiveNews_24H posted 'crazy footage' compilations of the unrest and said it looked like a 'war zone.' On YouTube, Damon Heller, who comments on police helicopter footage and scanner calls under the name Smoke N' Scan, streamed the clashes on Sunday for nearly 12 hours. Jeremy Lee Quinn, a photographer who shares protest footage to his social media followers, posted to Instagram on Saturday a video of protesters cheering from a bridge as officers tried to extinguish a burning police vehicle. Quinn, who also documented Black Lives Matter marches and the U.S. Capitol riots, said viewers on the left and right treat viral videos like weapons in their arsenal. Far-left viewers might take away from the videos ideas for militant tactics to use in future protests, he said, while far-right viewers will promote the videos to suggest the other side craves more violent crime. Either way, his material gets seen - including through reposts by groups such as the LibsOfReddit subreddit, which shares screenshots mocking liberal views on undocumented immigrants and transgender people. 'You end up with a far-right ecosystem that thrives on these viral moments,' Quinn said. As short-form video and social media platforms increasingly become many Americans' news sources of choice, experts worry they could also amp up the fear and outrage engendered by polarizing events. The fragmentation of social media and the attention-chasing machinery of its recommendation algorithms helps ensure that 'there are a lot of people talking past each other,' said Northeastern's Edelson, not seeing one another's content or 'even aware of the facts that are relevant to the other side.' Darrell West, a senior fellow at the Brookings Institution, a Washington think tank, said videos can play a uniquely forceful role in shaping people's reactions to current events because they 'encapsulate the emotion of the moment.' 'There's a heavy dose of misinformation,' he added. 'And, you know, people just end up getting angrier and angrier.' Related Content 'He's waging a war on us': As Trump escalates, Angelenos defend their city To save rhinos, conservationists are removing their horns Donald Trump and the art of the Oval Office confrontation
New York Post
17 minutes ago
- New York Post
Fetterman rips ‘anarchy and true chaos' in LA, warns Dems not to cede ‘moral high ground'
Democratic Pennsylvania Sen. John Fetterman has denounced the riots in Los Angeles and warned his party about the pitfalls of failing to adequately condemn the 'anarchy and true chaos. 'I unapologetically stand for free speech, peaceful demonstrations, and immigration—but this is not that,' Fetterman (D-Pa.) wrote on X on Monday evening. 'This is anarchy and true chaos. My party loses the moral high ground when we refuse to condemn setting cars on fire, destroying buildings, and assaulting law enforcement.' Advertisement The Keystone State Dem included a photo of cars being scorched in a fiery blaze with a shirtless masked man waving a Mexican flag in the background. 3 President Trump has deployed several thousand National Guard troops to Los Angeles to try to help quell the violent protests over his illegal-immigration crackdown. Toby Canham for NY Post Advertisement 3 Sen. John Fetterman, a Dem from Pennsylvania, isn't mincing words about his condemnation of the riots in Los Angeles. Getty Images Around the time of his post, Fetterman was spotted at Butterworth's, a top MAGA hangout in Washington, DC — dining with Trump ally Steve Bannon and Breitbart's Matt Boyle, Politico Playbook reported. Tech mogul Elon Musk commended Fetterman's condemnation of the 'anarchy and true chaos' unfolding in LA, replying with an American flag emoji. Fetterman's post came amid a feud between President Trump and top California Democrats over the prez's decision to federalize the California National Guard and bring in troops to tame the unrest in Los Angeles. Advertisement Protesters had flooded the streets in droves Friday to demonstrate against the Trump administration's immigration enforcement efforts in the city. The ICE agents' targets have included a Home Depot in Paramount. 3 Democratic Los Angeles Mayor Karen Bass has stressed that the violent destructive rioting has largely been limited to downtown. Toby Canham for NY Post By Saturday, some of the demonstrations devolved into violent clashes with federal authorities in Compton and Paramount. The Trump administration mobilized another 2,000 troops to respond to the mayhem, after previously ordering an initial 2,000 troops to the region over the weekend. Trump's secretary of defense, Pete Hegseth, said Monday he also was deploying 700 Marines to the area to help try to contain the chaos. Advertisement Top leadership in California, including Gov. Gavin Newsom and Los Angeles Mayor Karen Bass — both Democrats — slammed the GOP White House for the troop mobilization and pleaded with the public not to turn to violence to protest Trump's immigration policies. Newsom and California Attorney General Rob Bonta, also a Dem, filed a lawsuit Monday against the Trump administration seeking to void the president's memo to federalize the state's National Guard. Fetterman hasn't been afraid to punch the left in his own party, particularly when it comes to Israel. Near the end of the Biden administration, he had also favored measures to strengthen border security.
