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 data shows Albany’s immigrants paid $715 million in taxes in 2017, a more than 10 percent increase in just one year
New York – Today New American Economy (NAE), a bipartisan research and advocacy organization focused on immigration, released new data highlighting the significant contributions immigrants make to the community and economy in and around Albany. The data shows that immigrants in the Albany metro area are crucial… Read More
New data shows Philadelphia’s immigrant household income increased by nearly $3 billion in just one year
New York – Today New American Economy (NAE), a bipartisan research and advocacy organization focused on immigration, released new data highlighting the significant contributions immigrants make to the Philadelphia community and economy. The data shows that immigrants are crucial contributors to Philadelphia’s economy — the area’s immigrant… Read More
New data shows the number of immigrant entrepreneurs in the Twin Cities grew by 19 percent in just one year
New York – Today New American Economy (NAE), a bipartisan research and advocacy organization focused on immigration, released new data highlighting the significant contributions immigrants make to the Twin Cities’ community and economy. The data shows that immigrants in the Twin Cities are driving growth in the… Read More
New data shows Grand Rapids’ immigrants earned close to $2 billion in household income in 2017, an increase of more than $100 million in just one year
New York – Today New American Economy (NAE), a bipartisan research and advocacy organization focused on immigration, released new data highlighting the significant contributions immigrants make to Grand Rapids’ community and economy. The data shows that immigrants in Grand Rapids, Michigan are driving economic growth — the… Read More
Colorado Business Leaders Strengthen Commitment to Colorado Compact and Call for Immigration Reform
Denver, CO — Today, a bipartisan coalition of Colorado business, civic, academic, and faith leaders came together to promote the Colorado Compact on Immigration, a set of key principles outlining the need for smart immigration policies at the national level that will ensure the future growth and stability of… Read More
The Salt Lake Tribune Commentary: American economy needs more skilled immigrants
When I came to the United States from Cape Town, South Africa, in 1983 at age 22, I was fortunate that an American accounting firm sponsored my visa. Within a couple of years, I was able to apply for a green card — permanent legal status that gave me confidence… Read More
New data shows San Jose’s immigrant household income increased by more than $4 billion in just one year
New York – Today New American Economy (NAE), a bipartisan research and advocacy organization focused on immigration, released new data highlighting the significant contributions immigrants make to San Jose’s community and economy. The data shows that immigrants in San Jose are driving economic growth — the area’s… Read More
Knoxville News Sentinel Opinion: Welcoming refugees like me is what makes America great
Two years ago, when my restaurant was vandalized with a white supremacist slogan, I decided not to press charges. Instead, I told my customers and friends that whomever was responsible was welcome to come in for a meal and ask me any questions he or she might have about my… Read More
Chicago Tribune Commentary: I helped refugees in Iraq. Now I’m a refugee working in the U.S.
As an aid worker in Iraq, I worked with the U.S. Agency for International Development and the United Nations to help Syrian refugees fleeing the Islamic State. Now, I’m an immigrant myself, building a new life in Chicago and contributing to my new home as an administrator at a local… Read More
New Report Shows A Quarter of STEM workers in Mecklenburg County Are Immigrants
Mecklenburg County, NC – Immigrant households earned nearly $4.9 billion and contributed over $1.2 billion in taxes in 2017, according to new research by New American Economy (NAE) in partnership with the City of Charlotte. The report illustrates the impact… 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.
