I have long felt this was the fundamental reason our politicians, both parties, won't do anything about illegal immigration. If not #1, surely among the top 3. Social Security is the most massive Ponzi scheme ever inflicted on our nation. It was fiscally unsound from the get go and "reforms" and expansions over the years have only made it more so.
"One of the ironies of the challenging financial future faced by the Social Security Administration is this seldom-discussed fact: Undocumented workers contribute about $13 billion per year to the Social Security Trust Fund, and only get back a small fraction, adding a bit of black ink to a balance sheet in sore need of a boost. As President Obama mulls whether and when to enact executive orders that would affect the status of up to 11 million undocumented immigrants in the country, these Social Security payments are a proxy of sorts for the potential power of these workers who now stand in the shadows of the economy.
These immigrants are often accused of creating outsize social services costs, but in this important instance the opposite is true. Undocumented workers using fake, invalid, or borrowed Social Security numbers are subject to payroll taxes but usually receive nothing back. The extent of their contributions hints at the vast scale of the underground economy — and at the economic benefits that could be harnessed by giving undocumented workers a legal way to move out of it.
The chief actuary of the Social Security Administration recently told Vice News that, out of the estimated 7 million unauthorized workers currently in the US labor force, about 3 million use either false or expired Social Security numbers. The payroll taxes paid by these unauthorized workers go into the Social Security’s “earnings suspense file” — in effect, money without a lawful home. “You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,” the chief actuary told MSNBC. He said undocumented immigrants have contributed $100 billion into Social Security over the last decade.
Critics may say it is a small price for those to pay to work here illegally. But the large dollars at stake argue for legitimizing more of the undocumented workforce and reaping the economic windfall."
This is not an argument for continuing our present (non)policies but rather an explanation for why Washington does nothing about illegal immigration. The politicians know the Social Security program is a financial wreck.
If ISIS Is Not Islamic, then the Inquisition Was Not Catholic~~Jerry Coyne at NewRepublic.com
Quote: Cincinnatus wrote in post #1I have long felt this was the fundamental reason our politicians, both parties, won't do anything about illegal immigration. If not #1, surely among the top 3. Social Security is the most massive Ponzi scheme ever inflicted on our nation. It was fiscally unsound from the get go and "reforms" and expansions over the years have only made it more so.
"One of the ironies of the challenging financial future faced by the Social Security Administration is this seldom-discussed fact: Undocumented workers contribute about $13 billion per year to the Social Security Trust Fund, and only get back a small fraction, adding a bit of black ink to a balance sheet in sore need of a boost. As President Obama mulls whether and when to enact executive orders that would affect the status of up to 11 million undocumented immigrants in the country, these Social Security payments are a proxy of sorts for the potential power of these workers who now stand in the shadows of the economy.
These immigrants are often accused of creating outsize social services costs, but in this important instance the opposite is true. Undocumented workers using fake, invalid, or borrowed Social Security numbers are subject to payroll taxes but usually receive nothing back. The extent of their contributions hints at the vast scale of the underground economy — and at the economic benefits that could be harnessed by giving undocumented workers a legal way to move out of it.
The chief actuary of the Social Security Administration recently told Vice News that, out of the estimated 7 million unauthorized workers currently in the US labor force, about 3 million use either false or expired Social Security numbers. The payroll taxes paid by these unauthorized workers go into the Social Security’s “earnings suspense file” — in effect, money without a lawful home. “You could say legitimately that had we not received the contributions that we have had in the past from undocumented immigrants . . . that would of course diminish our ability to be paying benefits for as long as we now can,” the chief actuary told MSNBC. He said undocumented immigrants have contributed $100 billion into Social Security over the last decade.
Critics may say it is a small price for those to pay to work here illegally. But the large dollars at stake argue for legitimizing more of the undocumented workforce and reaping the economic windfall."
This is not an argument for continuing our present (non)policies but rather an explanation for why Washington does nothing about illegal immigration. The politicians know the Social Security program is a financial wreck.
As all justifications for illegals, this one is to put it kindly misleading. The following study was released in 2010 and used the government's notoriously under reported number of illegals.
Executive Summary This report estimates the annual costs of illegal immigration at the federal, state and local level to be about $113 billion; nearly $29 billion at the federal level and $84.2 billion at the state and local level. The study also estimates tax collections from illegal alien workers, both those in the above-ground economy and those in the underground economy. Those receipts do not come close to the level of expenditures and, in any case, are misleading as an offset because over time unemployed and underemployed U.S. workers would replace illegal alien workers.
KEY FINDINGS
Illegal immigration costs U.S. taxpayers about $113 billion a year at the federal, state and local level. The bulk of the costs — some $84.2 billion — are absorbed by state and local governments.
The annual outlay that illegal aliens cost U.S. taxpayers is an average amount per nativeheaded household of $1,117. The fiscal impact per household varies considerably because the greatest share of the burden falls on state and local taxpayers whose burden depends on the size of the illegal alien population in that locality
Education for the children of illegal aliens constitutes the single largest cost to taxpayers, at an annual price tag of nearly $52 billion. Nearly all of those costs are absorbed by state and local governments.
At the federal level, about one-third of outlays are matched by tax collections from illegal aliens. At the state and local level, an average of less than 5 percent of the public costs associated with illegal immigration is recouped through taxes collected from illegal aliens.
Most illegal aliens do not pay income taxes. Among those who do, much of the revenues collected are refunded to the illegal aliens when they file tax returns. Many are also claiming tax credits resulting in payments from the U.S. Treasury.
Algernonpj, you are absolutely correct in pointing out illegals cost us far more than they contribute. Even the article itself hints at this: "These immigrants are often accused of creating outsize social services costs, but in this important instance the opposite is true."(emphasis added)
This article, however, was only addressing how their contributions to one financially unsound program, Social Security, are helping to keep it alive, and that may help explain why Washington won't get serious about doing something about them.
If ISIS Is Not Islamic, then the Inquisition Was Not Catholic~~Jerry Coyne at NewRepublic.com