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Undocumented Migrants Who Pay Their Taxes Comply With The Law, But Put Themselves At Risk By Doing So

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Álex is 27 years old. A Mexican citizen, he arrived in the United States four years ago on a tourist visa, but never returned to his home country. In search of a better life, he decided to stay in Houston, Texas.

While he’s in the process of regularizing his status with a work visa, Álex is still one of the approximately 12 million undocumented immigrants currently residing in the United States. Therefore, he’s been added to the Trump administration’s list of “deportable” migrants. In the president’s opinion, the people on this list take advantage of the country’s generosity and commit crimes. He considers them to be undesirables.

The agreement reached between the Internal Revenue Service (IRS) and ICE (Immigration and Customs Enforcement) will facilitate the authorities’ work in detaining undocumented individuals and moving forward with the largest deportation effort in history. This has been the Republican president’s desire for a long time. Under the agreement, the IRS will transfer information about migrants’ locations to the agents in charge of expelling them from the country. This would be possible because — contrary to popular belief — undocumented migrants pay taxes.

Like most of the names on that hit list, Alex is not a criminal. “I came here to seek a better life, not to evade the law,” he explains. And instead of abusing public resources, he finances them. Every year, he files his tax return. This has resulted in him having to pay between $1,200 and $7,000 annually, depending on his income each fiscal year. “Even if we’re immigrants in the United States, one has to abide by the laws of the country. Whether you’re in Mexico, the United States, or China, you have to pay your taxes,” he asserts with conviction.

Despite the claims made by Trump and his supporters, undocumented immigrants not only pay taxes, but they also contribute more to federal and state coffers than they receive from them. Data obtained from various sources indicates that undocumented immigrants pay between $90 billion and $100 billion in federal, state and local taxes annually. According to a report by the Institute on Taxation and Economic Policy (ITEP), more than a third of the taxes paid by undocumented immigrants go to fund programs that these same workers are prohibited from accessing. In 2022, undocumented immigrants paid $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes and $1.8 billion in unemployment insurance taxes.

Portland, Oregon

“If [the authorities] really cared about pursuing immigrants with any criminal risk, these are the last undocumented immigrants they would want to pursue. Deporting them will hurt tax collections. [And], for those who remain, attacking them for filing their returns will obviously drive them even further underground and make them afraid to pay taxes,” opined Michael Ettlinger, a partner at ITEP, at a conference last week.

It’s estimated that between 50% and 75% of undocumented households file their annual returns using the Individual Taxpayer Identification Number (ITIN), which the IRS issues to non-citizens who cannot obtain a Social Security number.

By paying taxes, they comply with tax laws, which can help them regularize their immigration status by providing proof of their work history and physical presence in the United States. With the ITIN, they can also access the job market, apply for loans and even rent or buy a home.

Entrepreneurs

Álex obtained his ITIN the second year after arriving in the United States. He began working at a private investment firm, which initiated the process for him to obtain a visa. Then he had to leave for personal reasons, so his process was halted. Later, he started a marketing company, an LLC for which the only necessary identification is a passport. The result wasn’t as good as he expected, so now he’s embarked on a new venture with a synthetic turf installation company. In addition to his ITIN, he has an Employer Identification Number (EIN), which he uses to pay the company’s taxes.

Álex is concerned about what an agreement between the IRS and ICE will mean for him. “It’s going to affect a lot of people — including me — depending on what actions they take with that information. Let’s hope they don’t make any decisions as drastic as [the ones] they’ve been doing so far,” he sighs.

The dramatic images of ICE agents detaining parents in front of their children, mass workplace raids and the indiscriminate deportation of suspected criminals (who aren’t criminals) to a maximum-security prison in El Salvador don’t bode well for those who have maintained a low profile until now.

redadas ice

Until now, the IRS has respected taxpayer confidentiality, precisely because of the fear that personal information — especially if individuals are undocumented — could be misused. Revealing their identities would make it easier for ICE to locate them. But not filing isn’t a better option, either.

“If I stop filing my tax returns, the consequences will be worse, because now, I’d be committing another crime,” Alex shrugs.

Fewer new taxpayers

The outlook is different for those who have never filed a tax return before. Percy Peláez, president of the Central American Chamber of Commerce, has already noticed the effects of Trump’s policies in his accounting firm in Houston, Texas, where he has undocumented clients.

“Now, many people are asking: ‘If I file my tax return this time, will they give my information [to ICE]?’ The fear isn’t because they have to pay taxes: it’s because they have to give me the information. They ask me: ‘What do you think will happen with this?‘” The deadline for filing taxes ends on April 15th. The accountant’s clientele has dropped considerably compared to previous years, especially among new clients. While new ITIN applications accounted for between 12% and 15% of clients in previous years, this year, they only reached 1% to 2%.

Peláez acknowledges that offering a recommendation can be complicated. He generally tells his clients that they should follow the law, continue working and continue filing their taxes. However, he doesn’t overlook the latent risk of the authorities’ anti-immigrant crusade. “I also think about what happens if they get picked up. [Telling them not to pay would] be irresponsible [of me], but it’ll be on my conscience, right?”

Translated by Avik Jain Chatlani.

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Cable Car Crash Near Naples Kills 4 People

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Monte Faito cable car crash. Credit: X @micene_return

Four people, including two British tourists, died, and one person was seriously injured after a cable car crashed near Naples, Italy, on Thursday, April 17.

The cabin was travelling from Castellammare di Stabia to Monte Faito when the accident occurred just days after reopening for the season, according to several reports.

Cable car crash, Monte Faito, Italy

According to The Guardian, a cable broke on the popular tourist route, sending the upward-bound cable car crashing to the ground. The Italian fire department stated via Telegram: ‘Four lifeless bodies were found, while a fifth injured person was rescued and taken to hospital,’ confirming this as the final toll.

The Daily Mail reported that ‘two British tourists are among the four who were killed… The third victim is said to be from Israel, while the fourth was the driver of the cable car and has been named as Carmine Parlato.’ A second Israeli tourist was seriously injured, having ‘suffered multiple bone fractures’ and was airlifted to Naples’ Ospedale del Mare hospital.

More than 50 firefighters participated in the emergency response, but strong winds and fog severely hampered the rescue effort. One cabin near Castellammare was lowered safely, while the other remained terrifyingly suspended above a ravine.

Footage published by Italian TV and shared online showed that 16 survivors were helped out of the other cabin and evacuated one by one by harness.

How did the cable car crash happen?

An investigation has been opened by the Torre Annunziata prosecutor’s office. Castellammare Mayor Luigi Vicinanza explained: “The traction cable broke. The emergency brake downstream worked, but evidently not the one on the cabin that was entering the station” (Cited by The Daily Mail).

The head of the cable car operator Ente Autonomo Volturno, Umberto De Gregorio, told The Guardian: “The cable car reopened 10 days ago with all the required safety conditions… What happened today is an unimaginable, unforeseeable tragedy.”

The Monte Faito cable car, operational since 1952, has a tragic history. An accident back in1960 also left four dead.

Italian Prime Minister Giorgia Meloni, who was in Washington for talks with US President Donald Trump at the time, issued her condolences via a government press release, stating she wished to express “her closeness and deepest condolences to the families of the victims and the injured.”

Naples Mayor Gaetano Manfredi also responded, saying: “I express deep condolences, on behalf of the Metropolitan City of Naples and myself, for the victims of the tragedy that occurred this afternoon due to the collapse of the Faito cable car cabin.”

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European Interest Rates Cut Again

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European Central Bank ECB. Credit: 1take1shot, Shutterstock

The European Central Bank (ECB) has lowered interest rates by 25 basis points, bringing the key deposit rate down to 2.25 per cent from April 23, 2025.

This is the third interest rate cut this year and comes as the eurozone faces rising economic uncertainty triggered by Trump’s tariffs and a global trade war.

Why the European Central Bank is cutting interest rates again

The rate cut reflects the ECB’s updated view that inflation is falling as expected, while economic growth is increasingly at risk due to escalating trade tensions with the United States. Eurozone inflation hit 2.2 per cent in March, down from 2.3 per cent in February, with core inflation also falling.

The ECB said in its official press release that the disinflation process is “well on track”, noting that services inflation has eased and wage growth is moderating. While price pressures are cooling, concerns are now shifting towards slowing demand, especially as firms and households grow cautious in the face of geopolitical uncertainty.

Trump’s tariffs

The decision comes shortly after US President Donald Trump introduced a 10 per cent border tax on all EU imports, with an additional 10 per cent increase suspended until July. Steep 25 per cent tariffs already apply to specific industries such as cars, steel, aluminium.

ECB President Christine Lagarde warned these trade moves were already weighing on the European economy:

“The major escalation in global trade tensions and the associated uncertainty will likely lower euro area growth by dampening exports,” she said, according to The Guardian.

Speaking at a press conference, Lagarde called the current conditions “exceptional uncertainty,” adding that expectations for steady growth were becoming less reliable.

More European interest rate cuts likely in 2025?

Economists suggest this may not be the end of rate reductions. Deutsche Bank’s Mark Wall believes cuts could continue until rates reach 1.5 per cent, particularly if US tariffs remain in place and impact eurozone exports further: “The emphasis on a shock from the tariffs implied an openness to further monetary easing,” cited by The Guardian.

Markets now expect central banks across major economies to follow suit. The Bank of England is widely predicted to reduce rates in May and again later this year.

Germany’s investment plans offer financial hope for Europe

Germany is injecting hundreds of billions of euros into defence and infrastructure. Lagarde noted that these investments could support manufacturing and boost growth across the region, according to Le Monde.

Still, she stressed that monetary policy alone isn’t enough: “It is even more urgent to forge ahead with fiscal and structural policies that would make the eurozone more productive, competitive and resilient.”

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Why The Trump Administration Is Revoking Student Visas

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In recent weeks, the Trump administration has abruptly revoked visas for hundreds of international students from across the United States, triggering a wave of confusion, legal challenges and growing fear on college campuses. While U.S. officials have cited national security concerns and violations of immigration laws, many students and advocacy groups say the revocations are being carried out without due process and appear to disproportionately target those involved in political activism, especially pro-Palestine protests.

According to the State Department, at least 300 visas have been revoked, a number that may be even higher as more reports emerge. Universities such as Harvard, Columbia, Stanford, the University of California or Ohio State University have reported that students and recent graduates have lost their legal residency without notice. In several cases, students have been detained by Immigration and Customs Enforcement (ICE), sometimes by agents in civilian clothes near their homes or campuses.

Why are student visas being revoked?

Students and immigration attorneys claim that the visa revocations have largely occurred without advance notice, interviews or clear justification. Some revocations appear to be related to minor infractions, such as speeding tickets or the dropping of criminal charges, while others appear to be based solely on students’ participation in protests or political speeches, particularly those who have shown support for Palestine, and who are against Israel’s war actions in Gaza.

Federal Plaza

Legal experts point out that international students on F-1 visas enjoy First Amendment protection, just like U.S. citizens. However, because their visas are temporary, any perceived violation — even vague or unfounded — can lead to their removal from the country.

In many cases, revocations have been termed “prudential,” meaning they are based on suspicion rather than proven violations. Under immigration law, a visa can be revoked if the holder is deemed inadmissible on security, medical, financial or criminal grounds; if he or she is ineligible for the visa category; or if any information emerges that may present a future risk.

However, critics argue that the Trump administration is using this authority to effectively carry out mass removals of students who have not been charged with any crime. The American Civil Liberties Union (ACLU) has called it an unconstitutional ideological test.

Legal challenges

Students from states such as New Hampshire, California and Georgia have filed lawsuits against the Department of Homeland Security, alleging that their legal rights have been violated. One case that has attracted national attention is that of Xiaotian Liu, a Chinese doctoral student at Dartmouth College. Liu’s visa was cancelled without explanation, and he has not been charged with any crime or misconduct.

Similarly, Mahmoud Khalil, a legal permanent resident and recent graduate of Columbia University, was arrested at his home in March. His lawyers allege that the arrest was politically motivated and related to his activism on Palestinian issues. Rumeysa Ozturk, a student at Tufts University, was detained by six ICE agents on her way to a Ramadan event, despite having no criminal record.

Rumeysa Ozturk

Revocation process and precedents

Revoking a visa usually requires an interview at a U.S. consulate and an explanation of the reasons for the action. In practice, however, the process is often opaque. The State Department may notify the visa holder of the revocation by email or, as is increasingly common, not notify the visa holder at all, merely entering the revocation into government systems. If a student is already in the United States, his or her status may technically remain valid unless an immigration judge rules otherwise. However, their ability to travel, change status, or remain in the country becomes uncertain.

Historically, student visa revocations have been infrequent and linked to specific, verifiable reasons. The scale and apparent political targeting of the current wave has drawn comparisons to the Trump-era “Muslim Ban,” which led to more than 60,000 visa cancellations.

The uncertainty could severely impact the U.S. higher education system, as it could lose a generation of global talent if foreign students no longer feel safe traveling to the United States.

Responses from institutions

Universities are rushing to provide legal assistance and reassurance to their international students. Many urge students to carry immigration documents at all times and seek clarification from federal agencies.

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