Economic Effect of EB-5 Investments

 Almost any argument against the EB-5 immigration by investment visa program is based on some philosophical on hypothetical argument. The arguments run from the sublime to the ridiculous. Two of the most common stem from concerns about potential fraud and the ill-informed misunderstanding that these foreign investors will take jobs from American citizens.

A study published by EB-5 Investors magazine in October 2013 demonstrated the actual average impact of a single $500,000 immigrant investment.

·         The average contribution to the GDP by industry sector (directly, indirectly or induced) came to $881,309 and included the creation of 11 jobs, one more than required. In addition, the average investment would generated about $210,000 in federal, state and local taxes.

·         The economic impact of a typical individual investor household income was estimated at $583,202 in addition to the actual investment, with the assumption that $130,000 in federal state and local income taxes would be generated.

It is hard to argue with the numbers – especially when they underscore common sense thinking. There should be no doubt in anyone’s mind that the EB-5 program has developed into an economic boon to the United States of America.

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