Tax experts say proposed U.S. immigration enforcement measures could substantially reduce tax revenue over the next decade by discouraging undocumented people from filing returns. Both reports cite estimates that lost tax receipts could reach roughly $479 billion (or nearly $500 billion) between 2025 and 2034. The main mechanism described is risk created by proposed or expanded IRS information sharing with immigration authorities and ICE, which would make undocumented workers more likely to avoid submitting tax forms because they fear their data could be used for enforcement. The Guardian also notes that additional policy changes affecting immigrant families may reduce incentives to file, including the removal of certain tax benefits for immigrant parents. The Independent similarly focuses on the concern that cooperation between tax collection systems and immigration enforcement would deter filings. While the articles frame the impact in terms of enforcement and data-sharing proposals, they rely on tax professionals’ assessments rather than reporting specific completed policy outcomes or audited revenue losses. The overall picture presented is that changes increase filing risk, leading to fewer tax filings and lower revenue projections.
Trump immigration enforcement plans could reduce US tax revenue by up to $479B
Tax experts say proposed U.S. immigration enforcement measures could substantially reduce tax revenue over the next decade by discouraging undocumented people from filing returns. Both reports cite es...
- Estimates by tax experts suggest immigration enforcement measures could reduce US tax revenue by about $479 billion to nearly $500 billion over 10 years.
- A central concern is proposed IRS sharing of taxpayer information with immigration authorities/ICE.
- The proposed data-sharing is described as making tax filing riskier for undocumented people.
- Tax advisers say fewer undocumented workers may file returns, reducing receipts.
- Changes removing certain tax benefits for immigrant parents are also cited as reducing incentives to file.
Undocumented immigrants may be deterred from filing after the IRS agreed to share taxpayer data with ICE
3 months agoProposed IRS data sharing with immigration authorities and ICE raids have made filing risky for those who are undocumentedThe Trump administration’s immigration crackdown could cause the US to potentially lose up to $479bn in lost tax revenue over the the next 10 years, with enforcement deterring undocumented workers from filing their taxes this year, according to tax experts.Tax advisers say major changes, including proposed data sharing with immigration enforcement, have made filing taxes risky for undocumented immigrants. Tax benefits for immigrant parents have also been removed, further removing incentive to file taxes at all. Continue reading...
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