Taxes and Jobs: How Immigrants Affect the US Economy

Over the past two decades, Americans' perceptions of immigrants have changed to a more positive one. According to a Gallup Poll poll conducted in 2019, only 23% of Americans consider immigrants a serious problem for the United States, which is less than in previous years, writes Wallet Hub.

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In recent years, the percentage of people wishing to immigrate to the United States has increased. It is noteworthy that two-thirds of Americans consider this a good factor for the country. Immigration reform remains one of the most important political problems in 2020. The Pentagon may direct $ 7,2 billion for the construction of the border wall

WalletHub decided to look at how immigration affects the US economy. To determine which states benefit most from immigration, WalletHub compared 50 states and the District of Columbia for 23 key indicators: from average immigrant household income to jobs created by immigrant-owned businesses, etc. Later, all this was transferred to a 100-point scale, where 100 is a strong positive influence of immigrants on the state economy, 0 is the absence of such.

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State data

Most immigrants affect the economy of the following five states (in points):

• New York - 70,84
• California - 68,01
• New Jersey - 66,87
• Massachusetts - 66,36
• Maryland - 61,52

In the following states, immigrants contribute a minimal amount to the economy (in points):

• South Dakota - 21,18
• Montana - 20,6
• Idaho - 20,38
• Wyoming - 17,88
• Mississippi - 15,32

Additional data

In California, the largest number of immigrants is 26,9% of the state’s population, which is 16,6 times higher than in West Virginia, where only 1,62% of immigrants are.

Maryland has the highest average household income for immigrants - $ 79 a year, 141 times higher than New Mexico, where immigrants have the lowest income ($ 2,1).

In New Mexico, 63,5% of immigrants own their homes. This is 2,2 times higher than in North Dakota, where this figure is the lowest - 29,30%.

In New Jersey, the highest proportion of immigrants working in the field of STEM (science, technology, engineering, and mathematics) is 43,80%. This is 54,8 times higher than in Wyoming, where this indicator is the lowest - 0,80%.

In the District of Columbia, the highest share of direct and indirect jobs created through immigrants is 1,59%. This is 53 times higher than in Alaska, where this indicator is the lowest - 0,03%.

On the subject: Our People of 2019: U.S. Immigrants

Expert Comments

Are immigrants profitable for the state in terms of economy?

“The benefits are clear. Immigrants create a network of new businesses in the United States. They revitalize cities, ”said Alan Hyde of Rutgers Law School. - In their areas a low crime rate. They do a lot of useful work. Their taxes and social security contributions keep it afloat. The main cost for immigrants is public education, as a quarter of US students are immigrants or their children. We train children to become even more productive than their parents, and these investments will pay off over time. ”

“Immigrants bring great benefits to states,” says Misha Gellman of Emerson College. “They pay much more to the state treasury than citizens who count every dollar.”

“It is a myth that immigrants do not pay taxes or that they receive more from social services than they pay taxes. Unregistered immigrants pay taxes every time they buy clothes or new equipment, along with many other taxable goods. For example, households headed by undocumented immigrants in the United States paid more than $ 2010 billion in local taxes in 11. These workers pay sales taxes and property taxes. More than half pay income tax. Three quarters of illegal immigrants pay federal, state, and local taxes, including billions of dollars in social security taxes, for benefits they will never receive, ”says Misha Gellman.

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