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.
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
Foreign-Born Residents Paid $430 Million in Taxes in Louisville in 2016
LOUISVILLE, KY – Immigrants in the Louisville metro area paid $430 million in taxes in 2016, including $282 million in federal taxes and $148 million in state and local taxes, according to a new report by New American Economy (NAE), released in partnership with the Louisville Mayor’s Office for… Read More
Sioux City Journal: Report: Immigration fuels metro Sioux City’s recent population growth
Foreign-born newcomers accounted for more than 75 percent of metro Sioux City’s population growth between 2010 and 2015, a new report shows. The number of immigrants in the metro area were estimated at 14,817 in 2015, or 8.8 percent of the combined population of 169,069 for Plymouth and Woodbury counties… Read More
KMEG: One Siouxland received a big grant from a local employer
One Siouxland is a non-profit group that helps local immigrants is getting a big boost from an area employer. Tyson Foods which employs many newcomers to the US and Siouxland at its facilities in Storm Lake and Dakota City gave the group an $85,000 grant today. The head of One… Read More
Immigrants in Siouxland Contribute Millions to Regional GDP and Play an Integral Role in the Local Workforce
SIOUX CITY, IA – Immigrants in Iowa’s Plymouth and Woodbury counties contributed $522.2 million to GDP and held $137.7 million in spending power in 2015, according to a new research brief released by New American Economy in partnership with One Siouxland. The report highlights the demographic and economic contributions… Read More
Foreign-Born Residents Contributed Over $564 Million to Warren County’s GDP in 2016
BOWLING GREEN, KY – Immigrants in Warren County contributed $564.3 million to the county’s GDP in 2016 and paid $43 million in federal taxes and $21.1 million in state and local taxes, according to a new research brief by New American Economy (NAE), in partnership with the City… 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
