NC Budget and Tax Center

We are largely a nation of immigrants, and relatively recent ones at that. Waves of immigrants have come to the United States over the past several centuries, transforming the county from a colonial backwater to the wealthiest nation on the planet.  A report just out shows how important immigrant business owners are to communities across the country. As can be seen below, immigrants are over-represented as business owners, and it turns out they make up a particularly large share of main street proprietors.

Immigrant Percentage of Workforce and Business Ownership

The role that immigrants play as local business owners tends to be overshadowed in the policy debate surrounding immigration policy in the U.S.  Amidst the talk about border security, paths to citizenship, and human rights, we tend to overlook the fact that immigrants are vital to the economic backbone of the United States, small businesses. The Fiscal Policy Institute report shows that while immigrants make up 16% of the labor force, they own 28% of the main street businesses in the U.S. In many communities, immigrants make up a larger share of small businesses owners today than they did a decade ago, which is clearly shown in the graph below. Moreover, the report underscores how important immigrant businesses can be as early instruments of community revitalization, going into neighborhoods and communities when larger firms are still hesitant to invest.

Immigrant Business Ownership in Major Cities 2000 to 2013

Here are some of the other highlights from the report:

  • Immigrants are more important to metro small business communities than ten years ago. The report shows that the share of businesses owned by people born outside the United States has gone up in virtually every major metropolitan area in the country in the last 10-15 years. This includes both Charlotte and Raleigh, which saw marked jumps in immigrant small business ownership from 2000 to 2013.
  • Immigrants are particularly likely to own very small businesses. More than 80% of businesses owned by immigrants had ten or fewer employees, compared to just over 70% for native-born business owners. Many of these immigrant businesses are in main street service sectors, like laundries, barber shops, restaurants, groceries, and travel accommodation.
  • Immigrants are less likely to use a bank loan to start their businesses. Particularly on main street, native born business owners are more likely to get bank loans while immigrants are more likely to rely on personal savings. There are a host of reasons for this, but it is a point of concern. Access to capital is the lifeblood of small business, so if immigrants find it difficult to secure startup and operating capital, communities may lose businesses that are otherwise solid, or miss out of new businesses that never got off the ground.
  • Case studies in engaging immigrant business owners show the importance of public policies in supporting the success of these entrepreneurs. The report highlights economic revitalization efforts in Philadelphia, Minneapolis/St. Paul, and Nashville that focus on the needs of immigrant business owners.

When you take a sober look at the economic data, its clear that immigrants are essential to the economic well-being of the United States. Whatever you think about recent Executive actions, or what needs to be done about immigration policy generally, this is not an issue that we can afford to ignore. Immigrants have always been part of the U.S. economic history and, if we want to remain one of the most dynamic economic markets in the world, immigrants will be at the heart of those future stories as well.

Commentary

Please join us next week for a special NC Policy Watch Crucial Conversation luncheon —

“Fraud in the workplace: How numerous North Carolina employers are cheating their competitors and stealing from employees and taxpayers (and what should be done about it)”

Click here to register

There’s a multimillion dollar crime spree underway in North Carolina. Unfortunately, save for the efforts of a few intrepid journalists and lawyers, it’s a problem that’s mostly being ignored and swept under the rug. The issue is wage theft and the “misclassification” of workers by employers. As Raleigh’s News & Observer reported in a special report last fall entitled “Contract to Cheat”:

“Employers treat many of these laborers as independent contractors. It’s a tactic that costs taxpayers billions of dollars each year. Yet when it comes to public projects, government regulators have done nearly nothing about it, even when the proof is easy to get.

The workers don’t have protections. The companies don’t withhold taxes. The regulators don’t seem to care.”

Mandy Locke

Please join us as we explore this huge and poorly understood problem and how state lawmakers and regulators might properly address it with the lead author of the “Contract to Cheat” series, investigative reporter Mandy Locke.

Since joining the N&O in 2004, Locke has written extensively about the legal system, child welfare and hospital disputes. Her investigative work has been honored nationally by the Michael Kelly Award and the Gerald Loeb Award for business reporting.

Locke will be joined by Raleigh businessman Doug Burton, President and Owner of Whitman Masonry. Burton is one of the numerous North Carolina employers who treats his workers fairly, plays by the rules and is regularly disadvantaged as a result of the state’s lax law enforcement in this area.

When: Wednesday, January 28th, at noon — Box lunches will be available at 11:45 a.m.

Where: Center for Community Leadership Training Room at the Junior League of Raleigh Building, 711 Hillsborough St. (At the corner of Hillsborough and St. Mary’s streets)

Space is limited – preregistration required.

Cost: $10, admission includes a box lunch.

Click here to register

Questions?? Contact Rob Schofield at 919-861-2065 or rob@ncpolicywatch.com

News

All 16 campuses in the North Carolina’s university system want to raise tuition and fees over the next two years.

The combined increases for tuition and fees, if approved, would range from 2 to 7 percent increases for in-state students, and up to 6 percent for out-of-state students for the school year beginning this fall. Additional increases are also being proposed for 2016-17.

At the top end of the scale, the UNC School of the Arts wants to charge students $8,499 and  N.C. State University would like to charge in-state students $8,407 in 2015-16. On the lower end, Elizabeth City State University asked for increases that would bring tuition and fees to $4,657.

A finance and budget committee of the UNC Board of Governors members heard about the requested increases on Thursday. The full 32-member board, all of whom were appointed by Republican state leaders, will meet once more to discuss the tuition increases before a Feb. 27 vote on the increases.

The figures looked at Thursday did not include room and board estimates.

North Carolina’s university tuition rates continue to be lower than what in-state tuition costs at many of its peers, according to information presented at the meeting by university system staff.

But the state also is obligated through the state Constitutions to have higher education costs “as far as practicable, be extended to the people of the State free of expense.”

With significant cuts to the UNC system during the Recession (including $414 million for the 2011-13 biennium), students and their parents are paying a higher share of their education costs while levels of state support has dropped, according to a 2013 report by non-partisan legislative staff.

The report found that students paid $699 more for their education in 2013 than they did in 2007, while state support has dropped by $2,516 during that same time period.

Read More

Commentary

Notwithstanding the unceasing efforts to undermine and obstruct the Affordable Care Act, America’s health care law continues to pile up an impressive list of accomplishments. The latest was detailed this morning in this post by Tara Culp-Ressler at Think Progress:

“For the first time in a decade, the number of people struggling to pay their medical bills has started to decline, according to a new survey released on Thursday by the Commonwealth Fund. The researchers attributed the historic drop to the number of people gaining insurance under the health care reform law.

Between 2012 and 2014 — as Obamacare’s main coverage expansion took effect — the Commonwealth researchers found that the number of people who had issues paying for health treatment dropped from 41 percent to 35 percent. Over the same time period, the people who skipped out on health services because they couldn’t afford them declined from 43 percent to 36 percent:

commonwealth1

CREDIT: Commonwealth Fund

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CREDIT: Commonwealth Fund”

Commentary

Valentine’s Day 2015, February 14, will be especially memorable this year. This is from the good fols at the NAACP and HKonJ coalition:

On this Valentine’s Day, bring your sweetheart to Raleigh and JOIN THE LARGEST LOVE AND JUSTICE MOVEMENT SINCE SELMA!

We will show our LOVE for JUSTICE! We LOVE justice in Education; We LOVE Economic Sustainability, We LOVE Workers and Workers’ Rights and Livable Wages; We LOVE Health Care For All, Medicaid Expansion: We LOVE our Environment; We LOVE Equal Protection Under the Law, without regard to creed, race, gender, gender identity or sexual orientation; We LOVE Voting Rights For All; We LOVE criminal justice.

We LOVE the most vulnerable within our State and Nation; We LOVE the power and beauty of diversity within our State and Nation; We LOVE our neighbors; WE ARE IN THIS LOVE TOGETHER! And We are determined to go “FORWARD TOGETHER, NOT ONE STEP BACK!”

On February 14, 2015, we will gather at 9:00 a.m. in downtown Raleigh. The march will begin at 10:00 a.m. after which we will begin the mass people’s assembly on the doorstep of the State Capitol. Read More