In other words, if these folks were earning more, someone else wouldn't be doing that job, so the overall earning that the set number of jobs would support wouldn't change one way or the other from the tax revenue point of view.
(Not advocating for or against these folks being able to work at their full potential, just trying to look at the tax revenue argument objectively).
This generates economic activity across the entire chain, enriching everyone along the way. All of these people end up paying more taxes. Collectively the increase in activity can cause retailers, suppliers, and manufacturers to hire to keep up with demand further feeding the cycle.
IIRC the research shows ex-cons are far less likely to re-offend in the future if they land a good job. How many kids looking forward to $130k/yr jobs would choose to join a gang instead?
There's also the deadweight loss of criminal prosecution and jailing offenders. It generates a few legal and prison guard jobs but most of the taxes spent in the criminal justice system don't contribute constructively to society the same way building new bridges, subway systems, or funding science research does.
Nothing I said suggested otherwise.