Civic Contributions: Immigrant Taxes in The DC

Metropolitan AreaThe Woodrow Wilson International Center for Scholars

Thursday, November 1, 2007

Michael FixMigration Policy Institute

Almost Half of Cities with 1 Million or More

Foreign-Born Residents Are in the US

• 2004: over 1 million immigrants in DC area.

• 2000: they paid almost $10 billion in taxes.

• Immigrants’ share of taxes (18%) was almost as high as their share of households (21%) despite lower incomes ($78,000 vs. $88,000).

• Immigrants paid almost a quarter of all taxes in Montgomery and Fairfax counties.

• NOVA and suburban MD immigrants paid 8% of all state taxes in VA and MD.

Our Tax Study of DC Area Immigrants: Main Findings

Immigrants Paid $10 Billion in Taxes

TaxImmigrant

HouseholdsAll

Households% from

Immigrants

Total, all taxes 9,771 55,174 17.7%

Federal Taxes 7,030 40,183 17.5%

Income Tax 3,924 24,366 16.1% Social Security1

2,420 12,225 19.8%Medicare2

686 3,592 19.1%

State Tax 1,643 9,425 17.4%

Income tax 1,079 6,328 17.0% Sales tax3

418 2,326 18.0%Auto taxes and fees4

120 592 20.4%Tax on cigarettes and alcohol5 26 179 14.7%

Local Tax 1,098 5,566 19.7%

Real property tax6627 3,145 19.9%

Income tax7226 1,254 18.0%

Sales tax876 400 19.0%

Auto taxes and fees9121 511 23.6%

Utility and telephone taxes1048 256 19.0%

Medicare$686 million

7%

Local Taxes $1.1 billion

11%

Social Security$2.4 billion

25%

Income Taxes$3.9 billion

40%

State Taxes$1.6 billion

17%

72% of Taxes Paid by ImmigrantsGo to Federal Government

$9.8 billion in taxes, 1999-2000

Federal Taxes$7 billion

72%

Rate of Total and LEP Enrollment Growth:Rate of Total and LEP Enrollment Growth:From 1994 to 2005From 1994 to 2005

-20%

0%

20%

40%

60%

80%

100%

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Maryland

Source: National Clearinghouse for English Language Acquisition & Language Instruction Educational Programs (NCELA), 2006

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Virginia

Source: National Clearinghouse for English Language Acquisition & Language Instruction Educational Programs (NCELA), 2006

Rate of Total and LEP Enrollment Growth:Rate of Total and LEP Enrollment Growth:From 1995 to 2005From 1995 to 2005

LEP Enrollment

Total Enrollment

$31

$26

$31

$27

$26

$13

Native-Born

Foreign-Born

NaturalizedCitizens

Legal PermanentResidents

Legal TemporaryMigrants

Unauthorizedand TPS

`

Note: Based on adjusted Census 2000 PUMS

Mean Household Taxes Paid, by Nativity and Legal Status

Mean Household Taxes Paid 1999-2000(in thousands of dollars)

$11 $12

$19

$36

$21

$45

No high school degree High school or somecollege

4-year college degreeor more

Native-Headed Households Immigrant-Headed Households

`

Note: Based on adjusted Census 2000 PUMS

Mean Household Taxes Paid, by Nativity and Education of Household

HeadMean Household Taxes Paid 1999-2000(in thousands of dollars)

$34$29

$18$13$11

SpeaksEnglish at

home

SpeaksEnglish very

well

SpeaksEnglish well

Does notspeak

English well

Does notspeak

English at all

`

Note: Based on adjusted Census 2000 PUMS

Mean Household Taxes Paid for Immigrant Households, by English Proficiency of

Household Head

Mean Household Taxes Paid 1999-2000(in thousands of dollars)

Natives = $31

DC ESL Need: LPRs

10,056 LPRs need English instruction

Assuming 110 hours to increase one ESL level

• 462 thousand hours per year ESL to bring LPRs to English proficiency

• 2.8 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

VA ESL Need: LPRs

74,022 LPRs need English instruction

Assuming 110 hours to increase one ESL level

• 3.1 million hours per year ESL to bring LPRs to English proficiency

• 18.5 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

MD ESL Need: LPRs

59,905 LPRs need English instruction

Assuming 110 hours to increase one ESL level

• 2.5 million hours per year ESL to bring LPRs to English proficiency

• 15.0 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

DC ESL Need: Unauthorized

14,939 unauthorized immigrants need English instruction

Assuming 110 hours to increase one ESL level

• 690 thousand hours per year to unauthorized to English proficiency

• 4.1 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

VA ESL Need: Unauthorized

95,764 unauthorized immigrants need English instruction

Assuming 110 hours to increase one ESL level

• 4.4 million hours per year to unauthorized to English proficiency

• 26.4 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

MD ESL Need: Unauthorized

69,066 unauthorized immigrants need English instruction

Assuming 110 hours to increase one ESL level

• 3.1 million hours per year to unauthorized to English proficiency

• 18.5 million hours over 6 years to reach English proficiency

Source: MPI tabulations of 2000 Census data and 2005 CPS, with imputations of legal status by Urban Institute

Employed College-Educated WorkersEmployed College-Educated Workersin in Unskilled Occupations by Nativity:

DC / VA / MD, 2005/2006 2005/2006

21%

26%

34%

14% 13%

31%

39%

15%

22%

US born Europe* Latin America Asia Africa

Long-term immigrants (arrived prior to 1996)

Recent immigrants (arrived in 1996 or later)

US born

Source: American Community Survey, pooled 2005 and 2006Notes: *Refers to persons from Europe, Canada, and Oceania.

Percent of college-educated workers in unskilled occupations

14%

US born Europe* Latin America

Asia Africa

Find data, reports and other analysisby state and for the nation at

www.migrationpolicy.org

… 2006 ACS data and newdatabases coming online soon!

www.migrationpolicy.org/DataHub

For More Information

For more information, contact:

Michael FixVice President

Migration Policy Institute1400 16th Street, NW

Washington, DC 20036

(202) 266-1940(202) 266-1940www.migrationpolicy.org