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 Americans in the Columbus Metro Area
New research from New American Economy shows that immigrants paid more than $2.1 Billion in taxes in central Ohio in 2019. The new report, New Americans in the Columbus Metro Area, was prepared in partnership with US Together, the Columbus City Council, and the Franklin County Commissioners. In addition… Read More
New Report Shows Immigrants in Central Ohio Paid More than $2 Billion in Taxes in 2019
Immigrants in the Columbus region accounted for 26.4 percent of the population growth between 2014 and 2019. COLUMBUS, OH – Immigrants paid more than $2.1 Billion in taxes in central Ohio in 2019, according to new research from New American Economy (NAE) through the Gateways for Growth program, operated… Read More
Crain’s Cleveland Business: Ohio business leaders will push for place-based immigration in 2021
The push for more immigration targeted to specific regional areas as a means to replace declining population while growing the workforce is one of the main focuses for Ohio Business for Immigration Solutions and other organizations. As Ohio’s 134th General Assembly and the 117th Congress prepare toconvene new legislative… Read More
City of Brownsville Uses New Research to Inform Immigrant-inclusive COVID-19 Relief Measures
New Research from New American Economy shows that immigrants in Cameron County play an outsize role in critical industries, making up over 34 percent of all food sector workers and 30.1 percent of all healthcare workers. Brownsville, TX– New research from New American Economy (NAE) released today in partnership… Read More
Detroit Uses New Research to Inform Immigrant-inclusive COVID-19 Relief Measures
New Research from New American Economy shows that immigrants in Detroit play an outsize role in critical industries like Healthcare, Pharmacies, Groceries and Restaurants. Detroit, MI– New research from New American Economy (NAE) released today in partnership with the City of Detroit, Detroit Regional Chamber, Global Detroit, Oakland County,… Read More
New Data Shows Immigrants Contributed $920 Million to Longview’s GDP in 2017
Immigrants accounted for 11.8 percent of all entrepreneurs in the Longview Metropolitan Area LONGVIEW, TX – Immigrants contributed $920 million to the GDP of the Longview metropolitan area in 2017, according to new research from New American Economy (NAE) in partnership with the Longview Chamber of Commerce. In… Read More
GROW NKY Releases Regional Immigrant Integration Plan
First-ever plan in Northern Kentucky has recommendations for better integrating immigrants into the local community, economy, and workforce Covington, KY – GROW NKY, the strategic workforce collective working to leverage Northern Kentucky’s assets to grow, attract and retain a globally competitive workforce, released a regional immigrant integration community plan today. Read More
As Georgia Considers Expanding In-State Tuition, New Research Shows Legislation for Dreamers Could Lead to $3.4 million in Additional Tax Revenue for Georgia
New data shows significant economic benefits for the state, including $27.6 Million More in Immigrants’ Spending Power Every Year Atlanta, Georgia – Today New American Economy (NAE), a bipartisan immigration research and advocacy organization, released a new study showing how extending in-state tuition to all residents, regardless of immigration… Read More
Michigan Business and Industry Leaders Launch Michigan Compact on Immigration and Call for Reform
New research from New American Economy finds that immigrants contribute $2.1 billion in state and local taxes and hold $18.4 billion in spending power Lansing, Michigan — Today, a coalition of business and industry leaders came together at the Lansing Regional Chamber of Commerce to launch the Michigan Compact… Read More
New Research Shows Banning In-State Tuition for Dreamers Could Cause Missouri to Miss Out on Millions in Additional Tax Revenue and Spending Power Every Year
As the Missouri Legislature considers prohibiting access to in-state tuition for Missouri Dreamers, new data shows there are significant economic benefits the state would bypass. Jefferson City, MO – Today New American Economy (NAE), a bipartisan immigration research and advocacy organization, released a new study showing how offering in-state… 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.
