Impact of Immigration to the U.S.
Posted May 13, 2000

In this edition of the MurthyBulletin, we are highlighting some fascinating and interesting facts, which establish that immigrants contribute far more to U.S. education and the economy than they take from the U.S. The varied and far reaching contributions of the immigrants are symbolized in some revealing facts summarized below. The American Immigration Lawyers Association (AILA) recently released a fact sheet on the effects of immigration on America. The information, drawn from government and private studies, includes the following.

Immigration and Education:

a. During the 1999 academic year, enrollment in the nation's public and private schools is expected to reach 53.2 million. The major factors in this increase are increased birth rates (the "baby boom echo"), expanded pre-school programs and increased recognition of the importance of education. Immigration proved to be only a minor factor.

b. More than 70% of immigrants are over 18 years of age; thus, they do not use our elementary and secondary schools.

c. Almost two-thirds of recent immigrants (63.2%) have a high school degree.

d. The median level of education for newly arriving immigrants is 10 years, all of which was received abroad.

e. 17% percent of recent immigrants have bachelor's degrees, and 12% have graduate degrees, while only 16% of U.S. citizens have bachelor's degrees, and only 8% have graduate degrees.

These facts indicate that immigration does not pose a threat to the U.S. educational system and its educational standards. In fact, during the 1990's, student achievement scores have risen. These facts also indicate that recent immigrants tend to be educated individuals, who are able to make major contributions to the U.S.

Immigration and the Economy:

a. The National Academy of Sciences found that immigrants add $10 billion a year to the U.S. economy.

b. Each immigrant adds between $20,000 and $80,000 to the economy.

c. Approximately $133 billion in personal income taxes is paid by immigrants, while businesses owned by immigrants contribute an additional $29 billion in taxes.

d. Immigrants pay more in taxes than they receive in benefits.

These facts indicate that immigrants make a major contribution to the U.S. economy by adding more to the economy for the benefit of long time residents and citizens.

Social Impact of Immigration:

a. Immigrants pay $80,000 more in taxes than they receive in total lifetime benefits.

b. More immigrants start small businesses than do native-born citizens. In fact, immigrants own nearly half of all inner-city firms.

c. A recent issue of Forbes Magazine listed that 23 of the 200 Best Small Companies were immigrant-owned.

d. Immigrants have an average adjusted gross income of $40,502, and average taxable income of $32,585, while the averages for natural-born citizens are $35,249 and $27,076 respectively. This is the first time in U.S. immigration history that immigrants are earning more than Americans!

e. Immigrants pay an average of $6,580 a year in federal taxes; the average federal tax bill for native-born citizens is $5,070.

f. Businesses owned by immigrants pay, in the aggregate, $29 billion a year in taxes.

g. Even prior to the 1996 immigration laws, immigrants are less likely than native-born citizens to collect welfare. 4% of non-refugee immigrants received welfare in 1990, while in the same year 4.2% of natural-born citizens received welfare benefits. 3.2% of long-term immigrants (those who have been in the U.S. for at least a decade) were on welfare in 1990. This is the same rate as for native-born citizens during that time.

These facts indicate that immigrants contribute to the economy by earning higher incomes, creating jobs, paying higher taxes and not straining the welfare system.

The Law Office of Sheela Murthy, P.C.