Economics
Alabama’s Extreme Immigration Law Could Cost State Billions, Report Finds
Implementing Alabama’s extreme immigration law (HB 56) would be incredibly expensive. That is the bottom line of a new report by University of Alabama economist Samuel Addy entitled A Cost-Benefit Analysis of the New Alabama Immigration Law. According to the report, the law could cost Alabama up to $11 billion in GDP and nearly $265 million in state income and sales tax. The loss includes 1) implementation, enforcement, and litigation expenditures; 2) increased costs and inconveniences for citizens and legal residents and businesses; 3) reduced economic development opportunities because it creates a poor business climate; and 4) the economic impact of reduced aggregate demand due to some unauthorized immigrants leaving and therefore not earning and spending income in the state. Read More
New Report Highlights Contributions of Immigrant Entrepreneurs to U.S. Economy
BY MARCIA HOHN, IMMIGRANT LEARNING CENTER At last night’s State of the Union Address, two immigrant entrepreneurs were among the President's guests—Japan-born Dr. Hiroyuki Fujita, founder, president and chief executive officer of Quality Electrodynamics (QED) in Cleveland, Ohio and Brazil-born Mike Krieger, co-founder of Instagram, a fast growing social mobile startup. Dr. Fijuita and Mike Krieger were rightfully recognized for their entrepreneurial drive and hard-earned success (both businesses are now worth millions of dollars), but they are just two examples of immigrants who came to this country and started businesses. There are many more unsung immigrant entrepreneurs whose U.S. businesses continue to create jobs for Americans and strengthen the U.S. economy. Read More
New Report Says Legalization Would Result in $1.4 billion in Revenues for Houston, Texas
A new report issued this month by the Greater Houston Partnership (GHP), a business advocacy organization, confirms that legalization of unauthorized workers would result in those workers earning higher wages and paying more taxes. Potential Tax Revenues from Unauthorized Workers in Houston’s Economy uses data from the Pew Hispanic Center to estimate the number of unauthorized immigrant workers, by industry, in the Houston area. Then, assuming that legalized workers would earn the prevailing wage in their industry, GHP estimates their projected incomes to which it applies the standard tax rate. Read More
Immigrants, Latinos and Asians Contribute More to Your State Than You Think
Immigration has never been a numbers game. When people think of immigration in America, they likely call to mind fear-fueled myths perpetuated by immigration restrictionists, like “immigrants are stealing American jobs” or “immigrants are a drain on our system.” Sadly, numbers and facts have rarely been part of the discussion, especially as state legislatures continue to take immigration law into their own hands. Today, however, the Immigration Policy Center published 50 state fact sheets updated to show just how much immigrants, Latinos and Asians contribute to our country as consumers, taxpayers, workers, entrepreneurs and voters—facts state legislators would do well to consider before passing legislation that drives immigrants, undocumented and documented, from their state. Read More
New Report Finds that Immigration Creates U.S. Jobs
Immigration creates jobs for native-born Americans. That is the fundamental finding of a new study from the American Enterprise Institute and the Partnership For A New American Economy, entitled Immigration and American Jobs. The study—authored by Madeline Zavodny, a professor of economics at Agnes Scott College—reinforces the findings of numerous other studies which have demonstrated that there is no correlation between immigration and unemployment. Specifically, Zavodny analyzes Census data with the aim of answering one pivotal question: “In states with more immigrants, are US natives more or less likely to have a job?” Zavodny focuses on two groups in particular: immigrants with advanced degrees, and immigrants of any skill level who are in the country on temporary visas. Read More
Just in Time for the Holidays: Congress Moves 4 Million Children Closer to Poverty
Congress has been unable to pass any meaningful immigration legislation this year, but the House couldn’t miss a chance to stick it to immigrants by going after their U.S. citizen children in a recent tax bill. While Americans are debating whether taxes on millionaires should be raised, the House, at least, is planning to raise taxes on the most vulnerable of American citizens. Read More
New Report Shows Immigrant Women Entrepreneurs Create Jobs and Contribute to Economy
Economists readily acknowledge the economic contributions of immigrant entrepreneurs to the U.S. After all, we wouldn’t have one-quarter of all public companies in the U.S.—companies like Google, Yahoo!, and Intel which employed 220,000 people and generated more than $500 billion in one year—without them. But lost in that acknowledgement are the contributions of immigrant women entrepreneurs who last year made up 40% (or 980,575) of all immigrant business owners in the U.S. This week, a new report, Our American Immigrant Entrepreneurs: The Women, takes a closer look at these women and examines the obstacles and pathways to establishing successful businesses—businesses that have created American jobs and generated millions in taxable revenue. Read More
Alabama’s Immigration Law Digs Deeper Hole for State Economy
Although some Alabama lawmakers credit the state’s overall drop in unemployment to their new immigration law (HB 56), the reality is that many industries and sectors in the state are losing workers and jobs. This week, the Birmingham News reported that Alabama’s construction industry is losing jobs faster than nearly any other state—a loss experts say is due in part to HB 56’s draconian provisions. To make matters worse, Alabama’s crackdown on those who look or sound foreign (a Honda employee stopped this week and the arrest of a Mercedes executive last week) is causing many to fear Alabama’s anti-immigrant reputation will detract foreign investors from doing business in the state. In fact, according to the Tuscaloosa News, “the law is becoming the greatest threat to the state’s economy and job creation, overshadowing even the record-setting bankruptcy of Jefferson County.” Read More
New Report Predicts Continuing Integration of Immigrants into U.S. Society
Anti-immigrant activists like to pretend that immigrants are destined to be poor and to never successfully integrate into U.S. society. However, a new report from the Center for American Progress (CAP) concludes that, in reality, “immigrants are integrating into American life, learning English, and becoming homeowners.” When socioeconomic advancement is tracked over time, it becomes clear that “far from a life in poverty, immigrants are exemplifying the American Dream.” The report, entitled Assimilation Tomorrow, was co-authored by renowned demographer Dowell Myers (a professor in the School of Policy, Planning, and Development at the University of Southern California) and by John Pitkin (president of Analysis and Forecasting, Inc., in Cambridge, Massachusetts). This report is the companion piece to another study which was released by CAP last year, entitled Assimilation Today. Read More
Even Facebook Feels Brunt of Broken U.S. Immigration Policy
You know things are bad when a company as popular as Facebook has problems finding qualified talent. In a recent interview, Facebook’s chief operating officer, Sheryl Sandberg, remarked that our outdated immigration policy is a big reason Silicon Valley tech companies are fighting each other for highly skilled workers. Current immigration policy limits high-skilled worker visas (H-1B) to only 65,000 per year—a number that hardly meets demand. Even technology giant Microsoft recently testified before Congress that current immigration policies make finding talent a serious challenge. Until lawmakers revamp our outdated immigration system, technology companies like Facebook and Microsoft will continue to lose out on the foreign talent they need to stay ahead of the curve. Read More
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