Taxes and Spending Power
The contributions immigrants make as both taxpayers and consumers are indispensable to the U.S. economy. Nationally, immigrants earned $1.3 trillion in 2014 and contributed $105 billion in state and local taxes and almost $224 billion in federal taxes. This left them with nearly $927 billion in spending power, which they frequently used to purchase goods and services, stimulate local business activity, and create jobs in the broader U.S. economy.
New Report Shows Immigrants in Montgomery County Paid Over $219 Million in Taxes and Held Over $562 Million in Spending Power in 2019
DAYTON, OH, MARCH 15, 2022 – A new report, New Americans in Montgomery and the City of Dayton, by New American Economy — now the American Immigration Council — in partnership with the City of Dayton Human Relations Council (HRC), underscores… Read More
New Report Shows Immigrants in Passaic County Paid Over $1.3 Billion in Taxes and Held $3.6 Billion in Spending Power in 2019
PASSAIC COUNTY, NJ, February 3, 2022 – New research, New Americans in Passaic County, released today by New American Economy—now the American Immigration Council—in partnership with Passaic County and William Paterson University Small Business Development Center (SBDC),… Read More
New Report Shows Immigrants in Northeast Ohio Paid Over $1.5 Billion in Taxes and Held $3.9 Billion in Spending Power in 2019
CLEVELAND, Jan. 21, 2022 — A new report, New Americans in Northeast Ohio and Cuyahoga County, released today by New American Economy—now the American Immigration Council—in partnership with Global Cleveland, underscores the critical role immigrants in Northeast… Read More
New Research Shows Hispanic Households in Texas Paid more than $51 Billion in Taxes and Held more than $162 Billion in Spending Power in 2019
AUSTIN, TX – New research released today by Texans for Economic Growth, a statewide 110-member business coalition powered by New American Economy (NAE), underscores the crucial role Hispanic Texans play in the state’s economy, and across the major metros of Austin, Brownsville, Dallas and… Read More
New Research Shows Immigrants in Gainesville Paid $76 Million in Taxes and Held nearly $242 Million in Spending Power in 2019
GAINESVILLE, FL — A new report released today by New American Economy in partnership with the City of Gainesville and the R??ural Women’s Health Project, underscores the critical role immigrants in Gainesville play in education, business creation, and STEM innovation. Despite making up 11.3 percent of Gainesville’s population, immigrants… Read More
New Americans in Washoe County
New research from New American Economy underscores the critical role immigrants in Washoe County play in the community’s labor force, both as workers in critical industries and as entrepreneurs. The new report, New Americans in Washoe County, was prepared in partnership with the Northern Nevada International Center,… Read More
The Economic Contributions of Hispanic Americans
In celebration of Hispanic Heritage Month, we are partnering with UnidosUS, the nation’s largest Latino civil rights and advocacy organization, to highlight the contributions of Hispanic Americans to our society and economy. To celebrate Hispanic Heritage Month, we take a look at the most recent data from the… Read More
New Research Shows Immigrants in Erie are Playing an Outsize Role in Several Key Industries, including 8.2 Percent of STEM, 6.8 Percent of Professional Services, and 6.3 Percent of Manufacturing
Immigrants paid over $261 million in total taxes, and held over $192 million in spending power. Erie, PA – A new report released today by New American Economy in partnership with the city of Erie and Erie Regional Chamber and Growth Partnership, underscores the critical role immigrants… Read More
New Report Shows Immigrants and Refugees in the Minneapolis Area Paid Over $443 Million in Taxes and Held $1.2 Billion in Spending Power in 2019
Immigrants and refugees in the Minneapolis area make up 13.2 percent of business owners and 13.4 percent of STEM workers MINNEAPOLIS, MN – A new report released today by New American Economy (NAE), in partnership with the Minneapolis Regional Chamber of Commerce and the… Read More
Household Income of Immigrants
In 2014, more than 72 percent of foreign-born population in the United States was working-aged, compared to less than half of U.S.-born residents. This reality allowed immigrants to earn well over a trillion dollars of income in 2014—a greater amount than their portion of the U.S. population overall.
Tax Contributions
A notable portion of the income earned by immigrants each year funnels directly back to our government in the form of tax revenues. In some states, immigrants contribute more than one out of every four tax dollars paid by local residents each year—supporting taxpayer-funded services like public schools and police departments.
States Where Immigrants Contributed the Largest Share of Total Tax Revenues, 2014
Spending Power
Spending power is the disposable income left to households after deducting their annual tax contributions. The $9.3 billion in total spending power held by immigrant led households in 2014 allowed them to hold considerable power as consumers. By spending on goods and services, immigrants strengthen the U.S. economy and provide jobs to American workers as well as the businesses dependent upon paying customers.
Foreign-Born Population’s Amount and Share of Spending Power by State, 2014
Medicare and Social Security
Our Social Security and Medicare programs are already facing serious financial challenges—a pattern expected to worsen as large numbers of Baby Boomers retire and leave the workforce altogether. While the United States had roughly 16 workers paying into our entitlement programs for every one retiree in 1950, that number is projected to drop to just two workers for every retiree by 2035.1 Immigrants are already playing an important role supplementing our entitlement programs: One NAE study found that between 1996 and 2011 immigrants contributed $182.4 billion more to Medicare’s Hospital Insurance Trust Fund—the core trust fund in the program—than was expended on their care.
Sources:
1 “10 Truths About America’s Entitlement Programs, Address by R. Bruce Josten Executive Vice President of Government Affairs U.S. Chamber of Commerce,” U.S. Chamber of Commerce, accessed September 21, 2016. Available online.
Bolstering the Housing Market
By purchasing homes in neighborhoods formerly in decline, immigrants in recent decades have had a positive impact on U.S. housing values overall. From 2000 to 2010, each of the 40 million immigrants in the United States added, on average, 11.6 cents to the value of a home in their local county. That seems small, but it adds up. In fact, it resulted in immigrants growing U.S. housing wealth by $3.7 trillion during that period.2 Immigrants are also expected to play a key role buying up homes as baby boomers downsize in the coming years: Almost 30 percent of American homeowners were older than age 65 in 2014.
Sources:
2 Jacob Vigdor, “Immigration and the Revival of American Cities,” New American Economy, 2013 Available online.
Immigrant Subgroups
Regardless of where the immigrants came from, they contribute a tremendous amount of money to the U.S. economy as taxpayers and consumers. In this section, we show the amount earned and contributed in taxes by different ethnic and national origin groups within the foreign-born population.
Taxes & Spending Power of Major Immigrant Subgroups
Make a contribution
Make a direct impact on the lives of immigrants.
