Ryan Williams, New American Economy, email@example.com
One Out of Every Ten Dollars of Spending Power in U.S. in 2013 Held by Hispanics
New York, NY — Today, the New American Economy released a new report highlighting the important role that both native and foreign-born Hispanics play as consumers, purchasing goods and services that circulate money through the economy and help to grow and sustain businesses. The report also highlights their contributions to tax revenue, Medicare, and Social Security programs.
“This new report reveals how the spending power of native and foreign-born Hispanics is helping grow the economy in states across the country.” said John Feinblatt, Chairman of New American Economy. “These numbers offer more evidence of immigrants strengthening our communities – as workers, as contributors to tax revenue, and as consumers of goods and services.”
Report Key Findings
- 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.
See the full report, “The Power of the Purse: The Contributions of Hispanics to America’s Spending Power and Tax Revenues in 2013.”