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Executive Action on Immigration Will Benefit Nevada’s Economy

Everyone agrees that our immigration system is broken and needs reform. While only Congress has the
power to fix the immigration system once and for all, until it acts, there are important steps the president
can take that will start fixing our system while also increasing tax revenues, and strengthening our
economy. Today, there are 145,000 undocumented immigrants living in Nevada. Enabling even a
portion of these immigrants to register with the government, request a reprieve from removal, and apply
for a temporary work permit would increase Nevada’s tax revenues by $21 million, over five years, and
lead to a cascade of economic benefits.
Expanding deferred action will permit undocumented immigrants to work legally. Temporary work
permits will provide these workers with the ability to secure jobs that match their skill set and enhance
their productivity. As immigrants get on the books and work legally, their earnings will rise, and so too
will their tax contributions. Executive action on immigration is a step toward fixing our broken system,
and for Nevada, it is a step toward a stronger fiscal and economic future.
Fiscal Benefits of Executive Action in Nevada:
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There are 53,000 undocumented immigrants in Nevada who are potentially eligible for deferred
action under President Obama’s recent executive actions on immigration. If these immigrants are able
to receive a temporary work permit, it would lead to a $21 million increase in tax revenues for
Nevada, over five years.

Economic Benefits of Executive Action:
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Expanding deferred action will significantly strengthen Nevada’s economy. When undocumented
immigrants can work legally, they are able to shield themselves against workplace exploitation and
move freely across the labor market to find jobs just like anyone else. Combined, this leads to an
8.5% increase in their earnings. For the average undocumented immigrant that means they are
taking home an additional $1,872 each year. As these extra earnings are spent throughout the
economy, demand for goods and services rises, spurring job creation and raising the wages of all
American workers.

About the Analysis:
Tax benefits were calculated using the average annual income of undocumented immigrants, as estimated
by CAP; effective tax rates for Nevada, as calculated by the Institute on Taxation and Economic Policy; and
estimated wage increases due to receiving a temporary work permit. The calculated tax benefits reflect the extra
revenue that results from some undocumented immigrants filing taxes for the first time, in addition to the taxes paid
by all undocumented immigrants on their increased earnings. The analysis applied state-specific labor force and
employment participation rates for undocumented immigrants as reported by the Migration Policy Institute. The
analysis also accounts for the fact that an estimated 38% of undocumented immigrants are already paying income
taxes, nationally. In 2010 3.02 million undocumented immigrants filed income taxes using an Individual Tax
Identification Number, nearly 38% of the 8.0 million undocumented workers. It is assumed that the same share of
immigrants at the state level are currently filing taxes. The estimated number of undocumented immigrants includes
parents of children (who are US citizen or have Legal Permanent Resident status), and those individuals covered
under DACA expansion. The estimate isn’t confined to those parents who have been in the US for longer than 5
years.

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