Why doesn't the US government just tax illegal immigrants a little bit more than the Average american? Then use those funds to fix infastructure or a new WPA of the 21st century?
If they're using fake papers to work, they're paying income tax (and payroll tax is paid for them as well) but can't file for a refund or unemployment insurance payments. They pay into Social Security but won't be able to collect it (though I think anyone under 50 can probably relate to that).
When they buy things, they pay sales tax like anyone else.
They pay their landlady's property tax if renting and pay it themselves if not.
The IRS normally doesn't share files with anyone. Don't you know the old saying? The best way not to get caught as a drug dealer is to file your taxes.
If you look at my other comment, undocumented people in the US contribute over $90B in taxes every year!
How do you mean? The whole point is to encourage people, everyone, to pay taxes. It's a great system. Taxes enforcement should be truly independent from all other agencies to maximize trust and honesty.
So why does anyone launder money? Isn’t the whole purpose of that to hide conspicuous flows of cash from illegal activities? If it’s safe to pay taxes on ill gotten gains, why launder?
a) the main purpose is to avoid paying b) because spending a bunch of cash can be suspicious to other agencies that are looking, like if law enforcement is already suspicious and starts seeing a ton of large purchases without a legitimate source of income they will figure out something is up c) because people don't know any better.
Not necessarily. Sales taxes, payroll taxes, and income taxes are all paid by people who are living somewhere while not being an immigrant with a visa or the like.