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.
In the U.S. Since Age 13, Young Mother Calls DACA Her ‘Last Chance’
For Hyun Jung Kim, an undocumented immigrant from South Korea, last Thanksgiving in Anchorage, Alaska, was typical. “We had a big turkey and Jell-O salad,” she says. “As a family, we gathered, and had a meal together, and celebrated, and were thankful that we are all together.” Kim spent her… Read More
The Kangol Kid: Recycled Stereotypes Ignore Decades of Haitian Contributions
Shaun Fequiere was 7 years old when he first experienced the sting of discrimination. Classmates at his elementary school in Brooklyn had learned that his parents were from Haiti, where the main language is a French-based creole, and had started calling him “French fry” and “French poodle.” The teasing escalated,… Read More
In America Since Age 2, Texan Fears Deportation to El Salvador if TPS Ends
In 1997, the Iraheta family fled their native El Salvador, a country racked by political unrest following a 12-year civil war, for safety and opportunity in the United States. Claudia Iraheta was 2 years old. Her family settled in Farmers Branch, Texas, and has been able… Read More
WZZM 13: Study: Immigrants pay millions in taxes in Grand Rapids
The New American Economy partnered with dozens of national organizations to host the iMarch for Immigration Campaign – a nationwide campaign happening Wednesday, Dec. 6. As part of the campaign NAE released new data regarding the role of immigrants throughout the U.S. Their study revealed the following: In the Grand Rapids Metro Area,… Read More
Immigrants in Kansas City Metro Area Contribute $8.6 Billion to Local GDP and Hold $3 Billion in Spending Power
NEW YORK, NY – Immigrants contributed over $8 billion to the Kansas City metro area GDP in 2015, according to a new research brief released by New American Economy in partnership with the Greater Kansas City Chamber of Commerce. The report, which shows that immigrants in Kansas City are… Read More
Watch: Tech Entrepreneur Tom Chavez Joins the iMarch
https://youtu.be/2HjuyGUWF2o
DACA Recipient Wants to Give Her All to Only Country She Knows
In 2012, when Liz Cortez finally got her work permit under the Deferred Action for Childhood Arrivals (DACA), which allows undocumented immigrants brought to the country as young children to legally live and work in the United States, she treated the paper like a massive engagement ring. “I was obsessed… Read More
Company Founder, a Chinese Immigrant, Brings Factory Jobs from Asia to Maryland
In 2011, Chesapeake Bay Candle hit a unique milestone. That was the year the company, which manufactures high-end decorative candles, moved a significant portion of its production operations out of Vietnam and began manufacturing its products in a factory near Maryland’s Eastern Shore. Photo: Sherri Cunningham / CC… Read More
Immigrants are ‘Our Colleagues, Our Employees’ Says Advocate
Maria Teresa Borden, a journalist-turned-communications professional, was born in the United States, but she has an intimate understanding of the reasons people leave their native countries to start new lives. Her parents were refugees who fled Cuba after the revolution. And in Texas, where she lived from the age of… 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
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