The problem, as noted in some of the posts above, is the the various governments aren't so shy about identifying Latinos on Census Forms, in school admissions, as the victims of hate crimes, or in police reports.
If you take a look at some of the sex offenders, their heritage is primarily not Caucasian. There are double-standards and dishonesty at work here.
I know that the government used this term in forms and census to identify people with Spanish heritage. Let me just emphasize that Hispanics or Latins are not a race. They come from all races and physical traits. The name Hispanic is just a translation of the Old World word Hispania (Spanish).