Illegal Aliens Impact

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1. Impact of illegal aliens on the U.S. economy There have been a lot of arguments about the impact of illegal aliens on the U.S economy. The protesters said that they are the burden while the opposite team thought that undocumented aliens contribute to the country’s economy. Therefore, it can be said that unauthorized immigrants have both positive and negative impacts on different parts of the U.S economy. 1.1. Pros 1.1.1. Illegal aliens pay taxes With the idea of earning legalization, many undocumented citizens in the U.S pay taxes to gain legal status. As IRCA (1986) imposed strict penalties on business hiring illegal aliens, many of them have to get individual taxpayer identification number (ITIN) to file and get job. ITIN acts as an alternative ID for undocumented citizen to pay taxes.It is given by Internal Revenue Service (IRS) without any papers requirement. Its outstanding functions for aliens is that with ITIN, they do not need to have a Social Security Number (SSN) or legal status. The illegal aliens use ITIN to file their taxes which is collected by tax official. Most of underground workers, who are using ITIN to file, are cash earners. Therefore, they have to self-estimate their incomes and get charge of self-employment tax which is always greatly high. Moreover, if their employers have not withheld taxes for them, they will have to pay twice. In addition, the undocumented often work not only one job, so in order to find W-2 job (hourly employee), most such
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