A Partnership for a New American Economy report highlights the economic punch both native and foreign-born Latinos provide, particularly in states like California and Texas:
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.
The data also shows how Latino tax revenues put more into Medicare and Social Security programs than they take out:
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.
Rian Bosse tells companies to take notice:
With the growth, Latinos represent more purchasing power and are becoming the “backbone” of the economy in the United States while more and more enter the middle and upper classes, Cartagena said. One in six consumers in the country are already Hispanic and, since 2000, the percent of the Latino population making over $100,000 a year has doubled from 7 to 13 percent.
The full New American Economy report can be found here.