Trump’s immigration crackdown could cost up to $479bn in lost taxes over 10 years
Summary
President Trump’s immigration policies have led many undocumented immigrants to avoid filing taxes out of fear of enforcement. Experts say this drop in tax filing could cause the US government to lose up to $479 billion in tax revenue over the next ten years.Key Facts
- New immigration enforcement policies have made many undocumented immigrants afraid to file taxes.
- The IRS planned to share undocumented immigrants’ tax data with immigration authorities, but a judge paused this agreement.
- Undocumented immigrant parents lost eligibility for the child tax credit in 2025, even if their children are US citizens.
- About half of undocumented immigrant households usually file tax returns and paid nearly $97 billion in taxes in 2022.
- Many undocumented immigrants pay taxes despite not qualifying for most tax benefits, often paying a higher share of their income.
- Tax advisers report a large drop in undocumented clients filing taxes this year due to fear of deportation.
- Yale’s Budget Lab estimates the government could lose between $147 billion and $479 billion in tax revenue over 10 years due to these changes.
- As many as 2.7 million US citizen or legal resident children might lose access to the child tax credit because of the policy changes.
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