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Alabama’s immigrants pay more than $1 billion in annual taxes, study says

Immigrants in Alabama are responsible for more than $900 million in federal taxes and more than $350 million in state and local taxes, according to a study.

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Immigrants in Alabama are responsible for more than $900 million in federal taxes and more than $350 million in state and local taxes, according to a study published Monday that assessed the economic impacts of immigrants in each state.

Of Alabama’s 4.9 million residents, 162,567 of them, or 3 percent, were foreign-born as of 2018, according to statistics compiled by the American Immigration Council, which advocates for immigration reform.

Alabama residents in immigrant-led households had $3.7 billion in spendable income, the study states.

Of the state’s immigrant population, 34 percent was undocumented in 2016. That is equal to 1 percent of the state’s total population. Undocumented immigrants represented 2 percent of the state’s workforce that year. They paid an estimated $54.1 million in federal taxes and $37.6 million in state and local taxes in 2018.

Roughly 67,000 of the state’s immigrants, or 41 percent, were naturalized citizens as of 2018. Three-quarters reported speaking English “well” or “very well,” according to the study.

A third had a college degree or higher. By comparison, 25 percent of native-born residents of Alabama have that level of education. Twenty-seven percent of immigrants had less than a high school diploma compared to 13 percent of native-born Alabamians.

Mexico is the most common country of origin at 27 percent of immigrants. China and India each account for 6 percent, followed by Guatemala and Germany with 5 percent each.

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The industries employing the largest shares of the immigrant population are construction, services other than public administration, accommodation and food services, agriculture and manufacturing. 

There were 4,000 active recipients of Deferred Action for Childhood Arrivals, known as DACA, as of 2019. Of those eligible for DACA, 58 percent had applied. These groups combined were responsible for $11.4 million in state and local taxes, or 3.2 percent of the total amount paid by foreign-born residents.

Immigrants represented 6 percent of the state’s business owners and generated $319.8 million in business income in 2018, the study said.

Written By

Micah Danney is a former reporter at the Alabama Political Reporter.

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