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The Power of the Purse: The Contributions of Hispanics to America’s Spending Power and Tax Revenues in 2013

March 3, 2015 Comments off

The Power of the Purse: The Contributions of Hispanics to America’s Spending Power and Tax Revenues in 2013
Source: Partnership for a New American Economy

The Partnership for a New American Economy’s new report, “The Power of the Purse: The Contributions of Hispanics to America’s Spending Power and Tax Revenues in 2013,” highlights the important role that both native and foreign-born Hispanics play as consumers and taxpayers, as well as their contributions to Medicare and Social Security programs.

Key findings include:

  • Hispanic households, both native and foreign-born, account for a large portion of America’s overall spending power. In 2013, Hispanics had an estimated after-tax income of more than $605 billion. That figure is equivalent to almost one out of every 
10 dollars of disposable income held in the United States that year. Foreign-born Hispanic households made up a sizeable portion of that figure: We estimate their spending power totaled $287 billion that year.
  • The growing earnings of Hispanic households have made them major contributors to U.S. tax revenue. In 2013, Hispanic households contributed more than $190 billion to U.S. tax revenues as a whole, including almost $67 billion in state and local tax payments. Of this, foreign-born Hispanics contributed more than $86 billion in tax revenues nationwide. That included almost $32 billion in state and local taxes and more than $54 billion in taxes to the federal government.
  • In some states, Hispanics now account for a large percentage of spending power and tax revenues overall. In both Texas and California, Hispanic households had more than $100 billion in after-tax income in 2013, accounting for more than one of every five dollars available to spend in each state that year. In Arizona, a state with a rapidly growing Hispanic population, their earnings after taxes accounted for almost one-sixth of the spending power in the state. In Florida, Hispanics contributed more than one out of every six dollars in tax revenue paid by residents of the state.
  • Hispanics, and foreign-born Hispanics in particular, play an important role sustaining America’s Medicare and Social Security programs. In 2013, Hispanic households contributed more than $98 billion to Social Security and almost $23 billion to the Medicare’s core trust fund. Foreign-born Hispanics in particular contributed more than $46 billion to Social Security, while paying in more than $10 billion to the Medicare program. Past studies have indicated that in Medicare in particular, immigrants draw down far less than they put in to the trust fund each year, making such tax contributions particularly valuable.

Closing Economic Windows: How H-1B Visa Denials Cost U.S.-Born Tech Workers Jobs and Wages During the Great Recession

June 9, 2014 Comments off

Closing Economic Windows: How H-1B Visa Denials Cost U.S.-Born Tech Workers Jobs and Wages During the Great Recession
Source: Partnership for a New American Economy

The Partnership for a New American Economy’s new report, Closing Economic Windows: How H-1B Visa Denials Cost U.S.-Born Tech Workers Jobs and Wages During the Great Recession, shows how existing H-1B visa lottery caps disproportionately hurt American-born tech workers by slowing job and wage growth in more than 200 metropolitan areas across the United States. H-1B visa denials in 2007 and 2008 caused these areas to miss out on creating as many as 231,224 tech jobs for American-born workers in the years that followed and cost U.S.-born, college-educated workers in computer-related fields as much as $3 billion in aggregate annual earnings.

Immigrants Boost U.S. Economic Vitality through the Housing Market

June 21, 2013 Comments off

Immigrants Boost U.S. Economic Vitality through the Housing Market

Source: Partnership for a New American Economy

New research by Americas Society/Council of the Americas (AS/COA) and Partnership for a New American Economy (PNAE) finds that the 40 million immigrants in the United States have created $3.7 trillion in housing wealth, helping stabilize less desirable communities where home prices are declining or would otherwise have declined.

Evidence already shows that immigration helps stem the aging crisis that afflicting developed economies around the world. Since immigrants are more likely to be of working age, they help fill gaps in the labor force as the U.S. baby boom generation retires at a rate of more than 10,000 per day. But less attention has been paid to how immigration affects the housing market.

Immigrant workers strengthen the housing market in three ways:

  • They directly drive housing demand through their own purchasing power. The 40 million immigrants in the United States represent a powerful purchasing class—reflected by their demand for housing, as well as for other locally produced goods and services—that bolster the value of homes in communities across the country.
  • They indirectly generate demand by drawing U.S.-born individuals to opportunities in growing areas. The research shows that for every 1,000 immigrants settling in a county, 250 U.S.-born individuals follow, drawn by increased economic opportunity.
  • They shift demand for housing within metro areas toward neighborhoods that had fallen out of favor. The research finds that immigrants often contribute to the stabilization of less desirable neighborhoods, helping those areas become viable alternatives for middle- and working-class Americans. This opens up new opportunities for those without homes to consider purchases in areas once in decline—an important trend in expensive metro areas.

Open For Business: How Immigrants Are Driving Small Business Creation In The United States

August 24, 2012 Comments off

Open For Business: How Immigrants Are Driving Small Business Creation In The United States
Source: Partnership for a New American Economy

“Open For Business: How Immigrants Are Driving Small Business Creation In The United States” analyzes the increasing importance of foreign-born entrepreneurs on U.S. economic growth and job creation. Picking up and moving to another country is brave and risky, so perhaps it is not surprising that immigrants are venturing out and starting new businesses at a rate that far outpaces their share of the population. From local neighborhood shops to America’s largest companies, immigrant business owners contribute more than $775 billion dollars in revenue to our annual Gross Domestic Product and employ one out of every ten American workers at privately-owned companies across the country.

Key findings of the report include:

  • Immigrants started 28% of all new U.S. businesses in 2011, despite accounting for just 12.9% of the U.S. population
  • Over the last 15 years, immigrants have increased the rate by which they start businesses by more than 50 percent, while the native-born have seen their business generation rate decline by 10 percent
  • Immigrants are now more than twice as likely to start a business as the native-born
  • Immigrants start more than 25% of all businesses in seven of the eight sectors of the economy that the U.S. government expects to grow the fastest over the next decade. These include health care and social assistance (28.7%), construction (31.8%), retail trade (29.1%) and leisure and hospitality (23.9%), among others
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