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.
Immigrant from China Builds Business in Seattle to Aid Other Immigrants with Naturalization
Two years ago, Chinese native Xiao Wang founded Boundless Immigration, a Seattle-based business that has helped over 30,000 immigrants apply for green cards and go through the naturalization process efficiently and economically. He was inspired by his own parents’ story: When they were graduate students in electrical engineering and… Read More
Louisville-Based College President Applauds City’s Commitment to Diversity, International Students
Only 750 of the 12,000 students at Louisville’s Jefferson Community and Technical College are foreign-born, but college president Dr. Ty Handy calls them an inspiration. “Our international student population is absolutely an example to our other students,” he says. “Their retention rates, GPA exceed our institutional averages. They know… Read More
Foreign-Born Residents Contributed $1.2 Billion to Portland Metro Area GDP in 2016
PORTLAND, ME – Immigrants in the Portland, ME metro area contributed $1.2 billion to the area’s GDP in 2016 and paid $133 million in federal taxes and $62 million in state and local taxes, according to a new report by New American Economy (NAE), in partnership with the Portland… Read More
New York State Assemblyman Reflects on Immigrant Legacy in New York City
When Ron Kim’s family immigrated to the United States from South Korea in 1987, his parents chose to settle in New York City because they knew it had a strong immigrant community. Kim, who was seven years old at the time, explains that this community provided the family with… Read More
Steve Rao’s August 2018 Interview with NAE Executive Director Jeremy Robbins for “Leaders and Legends”
Listen to the interview below from Monday, August 20. https://www.americanimmigrationcouncil.org/wp-content/uploads/2018/08/Leaders-and-Legends-Steve-Rao-Jeremy-Robbins-Interview.mp3… Read More
Missoulian: Report: Immigrants in the Missoula region generate over $26M in tax revenue each year
Although immigrants make up only 2.3 percent of the total population of Missoula and four surrounding counties, those 4,654 people contributed $219.9 million to the goods produced and services provided in the region, $19.3 million in federal taxes and $7 million in state and local taxes in 2016 alone. That… Read More
News4SanAntonio: Are immigrants the lifeblood of our economy? Study shows they’re spending billions in SA
SAN ANTONIO — New study based on census and other government data shows immigrants in San Antonio are spending billions of dollars, adding major money into our local economy. New American Economy research shows immigrants in San Antonio in 2016 held more than $5.1 billion in spending power and contributed… Read More
Immigrants Were Responsible for One-Quarter of Population Growth in Fort Wayne and Northeast Indiana between 2011 and 2016
FORT WAYNE, IN – Immigrants in Fort Wayne and Northeast Indiana accounted for 24.7 percent of overall population growth in the region between 2011 and 2016 according to a new report by New American Economy (NAE), in partnership with Welcoming Fort Wayne, the Northeast Indiana Regional Partnership, and the… Read More
Foreign-Born Residents in Alexandria Paid $365 Million in Taxes in 2016
ALEXANDRIA, VA – Immigrants in the City of Alexandria paid $364.6 million in taxes in 2016, including $262.4 million in federal taxes and $102.2 million in state and local taxes, according to a new report by New American Economy (NAE), in partnership with the City of Alexandria Workforce… Read More
New American Economy Statement on Failed Immigration Legislation in the House of Representatives
NEW YORK – “Today proves it’ll take votes from both sides of the aisle for this Congress to get to yes on an immigration deal,” said John Feinblatt, President of New American Economy. “The right step for the House now is a successful discharge petition that advances a bipartisan solution… 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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Make a direct impact on the lives of immigrants.
