America's latest attempt to tighten immigration control is proving to be a colossal self-inflicted wound. The IRS sharing taxpayer information with ICE, meant to crack down on undocumented immigrants, is instead blowing a massive hole in the national budget.
Experts now estimate this policy will cost the US up to $479 billion in lost tax revenue over the next decade. Why? Simple economics. When the government uses tax filings to deport people, those people stop filing taxes.
Millions of immigrants, many working and contributing, are being driven into the informal economy. They're still working, just not on the books. This means no income tax, no payroll tax, no sales tax from legitimate transactions. It's a lose-lose.
This isn't just about immigration; it's about the very foundation of the US tax base. The policy, framed as a border security measure, is actively undermining the nation's financial health. The supposed benefit of stricter enforcement is dwarfed by the economic damage it creates. The government is essentially shooting itself in the fiscal foot.
