Latino Households Account for Over 20 Percent of Texas and Calif. Economy
A study by the Partnership for a New American Economy found that Latino households make over 20 percent of the economy in Texas and California.
Last year, the United States Census Bureau showed the average income for Latino households was $39,005, which was a significant change from two years before the 2013 study.
Latino consumers contribute to the economy in many ways but mostly through consumption.
"The Hispanic community's buying power is already important: $1 of every $10 in the U.S. economy comes from them," Rudy Fernandez, Hispanic affairs adviser in the President George W. Bush administration, told EFE.
University of Miami marketing professor Arun Sharma said in a teleconference that Latino consumption patterns have a great impact in the market, especially for entertainment.
Latinos are more frequent movie-goers than other communities and for many businesses the challenge is now to "reach and get in touch with them," he said.
Also, Fernandez made a point that Latinos pay more in taxes than they receive in benefits.
According to the study, Latinos paid over $190 billion in taxes last year including $98 billion in Social Security taxes and $123 billion in Medicare.
The U.S. Census Bureau's 2013 report on income and poverty showed that Latino households income increased by 3.5 percent when compared to the previous year.
Growing incomes allow for Latinos to consume more. According to a recent Gallup poll, Latinos spend $6 more than the median for the rest of the U.S. adult population.
Fernandez predicts that the future of tax programs depends on Latinos who are now about 18 years old.
Overall, the number of men and women in the workforce has increased.
More Latinos own businesses, as well, with some of them expanding to more locations owned by family members.
American-born Latinos and Latino immigrants combined have an after-tax income of $605 billion.
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