Economics of Immigration
How does immigration help the economy? Immigrants make a significant impact on state and local economies. Learn more about the contributions immigrants make as workers, taxpayers and consumers.
Immigrant Tax Contributions and the Future of the U.S. Economy
When it comes to the topic of immigration, Tax Day is a reminder of two important and often-overlooked points. First, immigrants pay billions in taxes every year. This is true even of unauthorized immigrants. Second, the federal government spends billions of taxpayer dollars each year on immigration-enforcement measures that wouldn’t be necessary if not for the chronic inability of Congress to reform our badly outdated immigration system. In other words, there is a strong fiscal case to be made for immigration reform. Were the U.S. immigration system to be given a 21st century overhaul, we would likely increase the tax dollars flowing from the immigrant community, and we would spend far less taxpayer money on immigration enforcement. Read More
Latinos in North Carolina: A Growing Part of the State’s Economic and Social Landscape
North Carolina has become a hub of Latino migration to the South. While many think this migration came suddenly, North Carolina has, in fact, been welcoming and integrating Mexican and other Latino migrants for generations. Over the last three decades, the Latino population in North Carolina grew from less than a half percent of the total population to 8.4 percent—more than 800,000 people. North Carolina, which now has more agricultural guest workers than any other state in the nation, has contributed to a quickly growing national population of 50 million Latinos, now the largest minority group in the country. But much is at stake for Latinos, native and newly arrived, as the state and region experience demographic transformation. The polarized nature of the current immigration debate has made the steady growth of Latinos in North Carolina more noticeable and more politically charged. The role of Latinos in North Carolina, however—as workers and residents—is an important and over-looked story of how North Carolina continues to grow and evolve in a changing economy and world. Read More
Rebooting the American Dream: The Role of Immigration in a 21st Century Economy
There is plenty of evidence that immigration helps to fuel the U.S. economy, just as it has throughout our history. Immigrants continue to play an important role in the economy as workers, entrepreneurs, taxpayers, and consumers. However, most observers agree that our current immigration system is outdated and dysfunctional, making it more difficult for the U.S. to compete in the global marketplace. The last time Congress made significant changes to the employment-based immigration system was 1990, when the Immigration Act of 1990 created the five-tiered employment-based immigration system and the numerical limits used today. Our immigration system needs to be updated and overhauled, but inflamed rhetoric often obscures reform efforts. The first step in reforming our immigration system is to understand the basic facts surrounding the debate. This report seeks to answer some basic questions about the role of immigration in today’s economy. Read the Executive Summary Read the Full Report Read More
Unauthorized Immigrants Pay Taxes, Too
Estimates of the State and Local Taxes Paid by Unauthorized Immigrant Households Tax Day is an appropriate time to underscore the often-overlooked fact that unauthorized immigrants pay taxes. The unauthorized, like everyone else in the United States, pay sales taxes. They also pay property taxes—even if they rent. At least half of unauthorized immigrants pay income taxes. Add this all up and it amounts to billions in revenue to state and local governments. The Institute for Taxation and Economic Policy (ITEP) has estimated the state and local taxes paid in 2010 by households that are headed by unauthorized immigrants. These households may include members who are U.S. citizens or legal immigrants. Collectively, these households paid $11.2 billion in state and local taxes. That included $1.2 billion in personal income taxes, $1.6 billion in property taxes, and $8.4 billion in sales taxes. The states receiving the most tax revenue from households headed by unauthorized immigrants were California ($2.7 billion), Texas ($1.6 billion), Florida ($806.8 million), New York ($662.4 million), and Illinois ($499.2 million) {See Figure 1 and Table 1}. These figures should be kept in mind as politicians and commentators continue with the seemingly endless debate over what to do with unauthorized immigrants already living in the United States. In spite of the fact that they lack legal status, these immigrants—and their family members—are adding value to the U.S. economy; not only as taxpayers, but as workers, consumers, and entrepreneurs as well. Read More
FAIR’s Distorted Fiscal Snapshot of Unauthorized Immigrants
Today, Fox News is reporting on data provided to them by the Federation for American Immigration Reform (FAIR) which amounts to a highly misleading fiscal snapshot of the costs allegedly imposed on U.S. taxpayers by unauthorized immigrants. Read More
Many Happy Returns: Remittances and Their Impact
Millions of immigrants in the U.S. send billions of dollars in remittances to friends and family members in their home countries each year. While it is easy to assume that this represents a huge loss for the U.S. economy, the relationship between remittances and the U.S. economy is much more complex than meets the eye. It’s true that remittances are an important source of income for immigrant-sending countries, but remittances are also a huge boost to U.S. exports and the U.S. economy. The following IPC Special Report reveals the economic benefits of remittances to both developing nations and the U.S. economy. Read More
New Report Highlights Economic Benefits of Comprehensive Immigration Reform
For Immediate Release New Report Highlights Economic Benefits of Comprehensive Immigration Reform January 7, 2010 Washington D.C. – As the U.S. slowly pulls free from a deep recession, a groundbreaking new study concludes that comprehensive immigration reform would provide just the type of boost our economy needs. Read More
The Facts About the Individual Taxpayer Identification Number (ITIN)
The Individual Taxpayer Identification Number (ITIN) is a tax-processing number issued by the Internal Revenue Service (IRS) to ensure that people—including undocumented immigrants—pay taxes. Read More
Untying the Knot Series: Unemployment and Immigration
Untying the Knot (Part I of III): The Unemployment and Immigration Disconnect With Congress once again poised to consider comprehensive immigration reform, a key question confronting lawmakers is to what extent immigration and unemployment are related. Opponents of immigration reform frequently argue that immigrants “take” jobs away from many native-born workers, especially during economic hard times. Yet an analysis of data from the U.S. Census Bureau clearly reveals that this is not the case. In fact, there is little apparent relationship between recent immigration and unemployment rates at the regional, state, or county level. Read More
Serving the Under-Served: Banking for Undocumented Immigrants
In recent years, there has been a great deal of controversy over the efforts of some banks to offer financial services to individuals without Social Security numbers, many of whom are undocumented immigrants. More and more banks now allow people to open checking and savings accounts and to apply for credit cards and home mortgages using an Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service (IRS) or an identification card issued by a foreign consulate in the United States. In February of 2007, for instance, Bank of America announced a pilot program in Los Angeles offering credit cards to individuals who lack either a social security number or a credit history, provided that they have ITINs. Read More
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