AILA FACT SHEET

FACT: Immigrants improve U.S. social situation.

Immigrants contribute to the American economy. Immigrants and their children raise the incomes of American workers by $10 billion each year. Immigrants pay $80,000 more in taxes than they receive in total benefits over their lifetimes. One landmark study reported, “All of these findings lead to one inescapable conclusion about the fiscal impact of the new immigrants: They do not cost — they pay. The net fiscal impact is positive.”

Immigrants create jobs. Numerous studies have shown that most jobs are created by small and medium-sized businesses. More immigrants start small businesses than do natural-born citizens. Nearly half of all inner-city firms are owned by immigrants. Twenty-three of the 200 Best Small Companies listed by Forbes Magazine in a recent issue were immigrant-owned.

Immigrants have high incomes. Immigrants have average adjusted gross incomes of $40,502, and average taxable income of $32,585.  The averages for natural-born citizens are adjusted gross income of $35,249, and taxable income of $27,076. Immigrants pay an average of $6,580 a year in federal taxes, while natural-born citizens pay an average of $5,070 in federal taxes. Business owned by immigrants pay $29 billion a year in taxes.

Immigrants keep Social Security afloat. Without the contributions of immigrants, the unfunded liability of the Social Security system from 1988 to 2002 would be $500 billion higher. If you look at the unfunded liability through the year 2072, it would be $2 trillion higher without the economic contributions of immigrants.

Immigrants don’t strain healthcare. A recent study reports that children in immigrant families appear to experience better health than do children in natural-born families. The same study notes that infant mortality rates are lower for some immigrants than the rates of infants of natural-born women.

Immigrants don’t abuse welfare. Even before the passage of the 1996 immigration laws, immigrants are less likely than native-born citizens to receive welfare. Four percent of non-refugee immigrants received welfare in 1990; 4.2 percent of natural-born citizens received welfare benefits that same year. Among long-term immigrants (those who have been in the U.S. for at least a decade), 3.2 percent were on welfare in 1990. Among native-born citizens, 3.2 percent were on welfare over the same period.

Sources: “A Fiscal Portrait of the Newest Americans,” Cato Institute, July 1998; “The New Americans: Economic, Demographic, and Fiscal Effects of Immigration,” National Research Council, 1997; “Emerging Health Issues of Children in Immigrant Families,” Dr. Fernando A. Guerra, July 16, 1999.

May 1, 2000  38med9020