- Research and Analysis
Power of the Purse: Contributions of Asian and Pacific Islander Residents in Texas
Published
New research from the American Immigration Council underscores the crucial role the Asian and Pacific Islanders (API) play in Texas’ labor force, housing market, population growth, and economy. The new report was prepared in partnership with Texans for Economic Growth, a statewide 160+ member business coalition powered by the American Immigration Council. The report focuses on the state of Texas with a spotlight on the Houston Metro Area.
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API Texans contributed billions in taxes and consumer spending. In 2023, API households earned $100.6 billion in income, with $19.7 billion going to federal taxes and $7.6 billion going to state and local taxes, leaving them with $73.4 billion in spending power that can be reinvested back into the local communities. Robust consumer spending by API households supports small businesses and keeps local economic corridors vibrant.
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API residents are helping Texas meet its labor force demands and will help meet future needs. In 2023, 68.9 percent of API residents were active in the labor force, compared with 66.0 percent of all Texans. This means API Texans played an outsized role in the state’s labor force.
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API Texans are helping drive population growth. Between 2013 and 2023, the API population in Texas grew by 65.7 percent to reach nearly 2.1 million. During this period, API residents accounted for 20.9 percent of overall population growth, with 10.5 percent attributable to immigrant API residents.
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Texans of Chinese origin hold substantial spending power. Chinese origin households in Texas earned $12.3 billion in 2023, with $2.5 billion going to federal taxes, $906.3 going to state and local taxes, leaving them with $8.9 billion in spending power.
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API households in Houston hold substantial spending power. In 2023, API residents in the Houston metro area made up 7.7 percent of the overall population and earned $32.8 billion in income. After contributing $8.8 billion to federal, state and local taxes, API Texans in Houston were left with $24.0 billion in spending power to reinvest into the Houston metro area.
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