Monday, April 7, 2008

How Immigrants Saved Social Security

April 2, 2008

How Immigrants Saved Social Security

Immigration is good for the financial health of Social Security because more workers mean more tax revenue. Illegal immigration, it turns out, is even better than legal immigration. In the fine print of the 2008 annual report on Social Security, released last week, the program’s trustees noted that growing numbers of “other than legal” workers are expected to bolster the program over the coming decades.
One reason is that many undocumented workers pay taxes during their work lives but don’t collect benefits later. Another is that undocumented workers are entering the United States at ever younger ages and are expected to have more children while they’re here than if they arrived at later ages. The result is a substantial increase in the number of working-age people paying taxes, but a relatively smaller increase in the number of retirees who receive
benefits — a double boon to Social Security’s bottom line.
We’re not talking chump change. According to the report, the taxes paid by other-than-legal immigrants will close 15 percent of the system’s projected long-term deficit. That’s equivalent to raising the payroll tax by 0.3 percentage points, starting today.
That is not to suggest that illegal immigration is a legitimate fix to Social Security’s problems. It is another reminder, however, of the nation’s complex relationship with undocumented workers. Would the people who want to deport all undocumented workers be willing to make up the difference and pay the taxes that the undocumented are currently paying?
It is also a reminder of Social Security’s dynamism. As society and the economy evolve, so does the system, responding not only to changes in immigration and fertility, but also in wage growth and other variables. As such, it is adaptable to the 21st century, if only the political will can be found to champion the necessary changes. Those include modest tax increases and moderate benefit cuts that could be phased in over decades — provided the country gets started soon.

1 comment:

Anonymous said...

This persons views are not correct. The undocumented/illegal workers actually did not save Social Security, but actually are Causing it for the past couple of Decades to be over burdened by cost picked up by Medicare/Medicaid Most illegal individuals come to the USA not only to work but to get health care free of charge which in some cases per individual could be in the hundreds of thousands of dollars depending on the type of injury. Also many file for disability and manage to get it although they are not U.S. Citizens. They are allowed to do this because a loop hole in the law that lets them file. Imagine this since the last 1986 Amnesty, illegal Visa Over stayers, illegal crossers utilize our Social Security Tax System to pay their medical bills and also some as getting SSI checks which have cost our County hundreds of Billions of dollars, yep thats right hundreds of Billions of Dollars. Why Social Security is endanger of actually failing or retiring baby boomers.

They give the argument they pay taxes, which is bull, many of these illegal workers use someones identity and when hired put down many dependents so the amount deducted from their paychecks is very minimal. Like who puts 10 dependents on the Federal forms to determine what the company will deduct per check.

The only taxes they can honestly say they pay is sales tax due to everyone pays that at stores across the United States. but those taxes are not for Social Security, most local taxes are for other things.

The fact is these individuals use about 80 percent more than they actually contribute.

Here is an example. Illegal worker comes to U.S. makes 7.000 a year gross you figure out what the Social Security deductions are not that much. Then this individual goes the hospital and/other Health and Social agencies for Medical Care, Food Stamps, etc and say their doctor bills come out to 45,000 that year cause they had a bad disease but can still work, but Medicare paying for all the expensive doctor and therapy visits, and medication at no charge to the illegal or visa over stayer.

These are not exaggerated figures many come to U.S. not for just the JOB but for expensive free health care. To make matters worse many send back to Mexico what little they make and live off of the American Tax payer in the form of disability and food stamps.

Even if they get caught and get sent back many just come right back, meaning our border is not secure. Why would any Citizen want illegals that are hurting our Senior Citizens Social Security Retirement money and Health Services.