FOR IMMEDIATE RELEASE: February 1, 2021
Media Contact: communications@fiscalpolicy.org, 518-786-3156
Concrete Gains for New Yorkers from Federal Immigration Proposal
Removing Barriers for Immigrants Boosts Earnings and Tax Revenue
Read the report: A Pathway to Citizenship: Doing Well by Doing Good
(Albany, NY) A new report by the Fiscal Policy Institute (FPI) in conjunction with the Institute for Taxation and Economic Policy (ITEP) shows the ways New York State would benefit if undocumented immigrants could gain work authorization and apply for citizenship, as is being proposed by the Biden-Harris Administration.
Statement from David Dyssegaard Kallick, Director of Immigration Research Initiative:
“A pathway to citizenship would unleash economic power by allowing currently undocumented immigrants to advance in their careers. That would bring all kinds of positive ripple effects, from more spending in local economies to higher tax revenues for state and local government. That would be a real bright spot in the midst of this stressful COVID recession.”
Removing Barriers to Advancement, Strengthening the Economy
Today, an estimated 10.5 million people live in the United States as undocumented immigrants, including 680,000 in New York State. Ensuring work authorization allows immigrants to advance in ways that produce both immediate and long-term economic benefits. Studies show that within a five-year period of gaining work authorization immigrants can be expected to earn about 10 percent more than they did when they were undocumented, and the step to gaining citizenship brings with it another nine percent gain. Today, the average family income for undocumented immigrants is $33,000. With citizenship that can be expected to increase by $6,500 to $39,500—enough to make a very real difference in family life. Those gains contribute directly to the local economy as immigrants spending their earnings in local stores, rent or purchase homes, and start or expand businesses.
Undocumented immigrants currently pay $890 million in state and local taxes in New York through sales tax, property tax (directly if they own property and indirectly if they rent), and income tax (with about half currently filing income tax returns). The step to work authorization is predicted to increase that revenue to $1.09 billion, and if all then took the further step to become citizens the total would be $1.19 billion, a $300 million gain over today’s revenues.
Today’s release is a preliminary update of a previous collaboration between ITEP and FPI. ITEP is readying the release of updated data for all 50 states plus DC.
Read the report: A Pathway to Citizenship: Doing Well by Doing Good
The Fiscal Policy Institute is a nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all. FPI’s Immigration Research Initiative looks at immigration issues in New York State, and around the country.
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FOR IMMEDIATE RELEASE: February 1, 2021
Media Contact: communications@fiscalpolicy.org, 518-786-3156
Concrete Gains for New Yorkers from Federal Immigration Proposal
Removing Barriers for Immigrants Boosts Earnings and Tax Revenue
Read the report: A Pathway to Citizenship: Doing Well by Doing Good
(Albany, NY) A new report by the Fiscal Policy Institute (FPI) in conjunction with the Institute for Taxation and Economic Policy (ITEP) shows the ways New York State would benefit if undocumented immigrants could gain work authorization and apply for citizenship, as is being proposed by the Biden-Harris Administration.
Statement from David Dyssegaard Kallick, Director of Immigration Research Initiative:
“A pathway to citizenship would unleash economic power by allowing currently undocumented immigrants to advance in their careers. That would bring all kinds of positive ripple effects, from more spending in local economies to higher tax revenues for state and local government. That would be a real bright spot in the midst of this stressful COVID recession.”
Removing Barriers to Advancement, Strengthening the Economy
Today, an estimated 10.5 million people live in the United States as undocumented immigrants, including 680,000 in New York State. Ensuring work authorization allows immigrants to advance in ways that produce both immediate and long-term economic benefits. Studies show that within a five-year period of gaining work authorization immigrants can be expected to earn about 10 percent more than they did when they were undocumented, and the step to gaining citizenship brings with it another nine percent gain. Today, the average family income for undocumented immigrants is $33,000. With citizenship that can be expected to increase by $6,500 to $39,500—enough to make a very real difference in family life. Those gains contribute directly to the local economy as immigrants spending their earnings in local stores, rent or purchase homes, and start or expand businesses.
Undocumented immigrants currently pay $890 million in state and local taxes in New York through sales tax, property tax (directly if they own property and indirectly if they rent), and income tax (with about half currently filing income tax returns). The step to work authorization is predicted to increase that revenue to $1.09 billion, and if all then took the further step to become citizens the total would be $1.19 billion, a $300 million gain over today’s revenues.
Today’s release is a preliminary update of a previous collaboration between ITEP and FPI. ITEP is readying the release of updated data for all 50 states plus DC.
Read the report: A Pathway to Citizenship: Doing Well by Doing Good
The Fiscal Policy Institute is a nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all. FPI’s Immigration Research Initiative looks at immigration issues in New York State, and around the country.
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