Many states in the USA have various factors that contribute to their growing local economic statuses. Studies have shown Texas as the second largest states in America with a growing economy. The studies reveal that several factors such as the oil and petroleum industry, education, and immigration play a significant role in the growth of the economy. On the other hand, the factor of immigration has received mixed reactions concerning its effects on the state’s economy and hence an impact on the nation is economic growth. Notably, different research studies report that Texas has the highest rate of legal and illegal immigrants.
On the same note, the studies reveal that the number of legal immigrants in the state has higher education such as degrees and diplomas from their countries as well as those earned in Texas compared to the higher academic qualification from native-born citizens. In so doing the legal immigrants occupy the STEM (Science, Technology, Engineering, and Mathematics) industry. Therefore, these immigrants contribute directly to taxes paid in the states hence positively affecting the US economy. Moreover, both legal and illegal immigrants contribute to the economy of the state by paying taxes for school fees.
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According to various studies, the legal immigrants pursuing an education in a different institution in the nation pay higher tuition fees than the local student. This in general means that the state contributes to the US economy through the collection of educational funds provided by international students learning at various academic levels in that state. Similarly, Texas has a thriving business arena occupied by both natives, legal and illegal immigrants. The business sector contributes a substantial amount of money to the economy of Texas by paying trade taxes and other forms of taxes that relates to business activities. Similarly, the study reveals that the state also contributes to the local and national economy though income taxation paid by legal, illegal, and native born Texans. However, the study also reveals that it is impossible to calculate the amount of money that the state loses in income evasion by illegal immigrants since Texas does not have a defined income tax collection method.
The study also reveals that the immigrants, both legal and illegal play a significant role in influencing the economy of Texas through property taxes. Particularly, studies reveal that i n 2010, the state of Texas collected an amount of $178 million in property taxes given by both legal and native citizens. On the other hand, the state collected $1.4 billion from unauthorized immigrants in sales taxes. The study has also revealed that Texas receive more taxes from unauthorized and authorized immigrants than any states in the USA. However, despite the positive contribution of taxes by both legal and illegal immigrants, the same study has shown that Texas use a lot of money in sustaining illegal immigrants. For example, the state uses $62 million per year for Medicaid to undocumented immigrants. Similarly, Texas spends $1.3 million on family violence program; $717 million goes to uncompensated care while the state pays $33million for Texas CHIP perinatal services. This results in a total of $803.3 million per year. Away from the state's expenditures, studies have also shown that the states of Texas receive high amounts of property taxes from legal and illegal immigrants than they do from natives. This is because both legal and illegal immigrants pay higher taxes on property rate than natives born citizen do.
On the other hand, the state of Texas directly contributes to the US economy through its fast growing oil and petroleum industry. Current research reveals that the oil and petroleum industry in Texas is projected for further growth in the coming years. The study reveals that the sector will generate about $374 billion in economic output. Similarly, research shows that the oil and petroleum industry will generate $212 billion in added gross state products and provide $19.5 billion to local and state government tax revenues between the year 2016 and 2024. This projected growth indicate the positive impact the petroleum and oil sector in Texas will provide to the general US economy within the stated period. The increased growth in the sector will also lead to increased creation of jobs not only for the local citizens but also for citizens from across the US. The study reveals that the growth in the petroleum and oil industry resulted in the creation of 165,000 jobs in 2013 alone. The statistics in job creation is expected to grow further in the coming years hence contributing positively not only to the local economic growth but the growth in the over US economy.
Available studies reveal that the oil and petroleum industry in Texas will also sustain the creation of around 171,000 jobs per year. The additional employment rate will further lead to a contribution of $18.7 billion in value added taxes and $33.1 billion in output tax generation. The study reveals that as long as the industry maintains effective transportation capabilities, then it will be able to contribute positively to state and local revenues of Texas. On the other hand, the sector will be able to contribute to the national economy through activities such as refining, exploration, and products as long as the leaders in the industry have effective transportation methods. The study also reveals that the leaders in the sector need to have the effective and skilled workforce to be able to maintain higher production in the oil and petroleum sector. On the other hand, the oil and petroleum industry will positively affect the state and US economy through exportation of petroleum and oil to different parts of the nations. Similarly, an exporting product from this sector also contributes to the US economic growth. Studies reveal that the leaders need to maintain lean and efficient functions in the states to ensure continued economic growth in the industry.
