Wednesday, April 04, 2007

$50 Billion Tax Payments from ITIN (Illegal Workers)

Today's WSJ reported that illegal workers in the United States are required to pay taxes and are given an ITIN number. I found a testimony of IRS Commissioner Everson to the House Ways and Means committee where he provides more details around the WSJ article. He thinks that most of these payments are from the undocumented workers (see link above). Today's WSJ gave an example of a tax filing of Pablo Espinoza a welder earning $42,000 and an illegal worker. "Last year, $1,464.88 in Social Security and $342.60 in Medicare were deducted from Mr. Espinoza's wages. His wife paid several hundred dollars in Social Security and Medicare, too. In addition, $3,508 in federal taxes was withheld from their combined salaries. Mrs. Castillo figures they will get a $3,462 refund from the IRS, putting their total federal tax bill at $46." Note while he can get a refund - he is a net contributor to Social Security and Medicare. In his testimony to Congress - IRS Commissioner Everson was making a case for comprehensive reform. WSJ reference http://online.wsj.com/article/SB117564081607858869.html?mod=hps_us_editors_picks

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