Undocumented Immigrants are Bolstering Social Security With Billions
Saturday, April 9, 2005 at 09:13PM
TheSpook
As the debate over Social Security
heats up, the estimated seven million or so illegal immigrant workers
in the United States are now providing the system with a subsidy of as
much as $7 billion a year. While it has been evident for years that
illegal immigrants pay a variety of taxes, the extent of their
contributions to Social Security is striking: the money added up to
about 10 percent of last year's surplus - the difference between what
the system currently receives in payroll taxes and what it doles out in
pension benefits. Moreover, the money paid by illegal workers and their
employers is factored into all the Social Security Administration's
projections. Illegal immigration, Marcelo Suárez-Orozco, co-director of
immigration studies at New York University, noted sardonically, could
provide "the fastest way to shore up the long-term finances of Social
Security." It is impossible to know exactly how many illegal immigrant
workers pay taxes. But according to specialists, most of them do. Since
1986, when the Immigration Reform and Control Act set penalties for
employers who knowingly hire illegal immigrants, most such workers have
been forced to buy fake ID's to get a job. Currently available for
about $150 on street corners in just about any immigrant neighborhood
in California, a typical fake ID package includes a green card and a
Social Security card. It provides cover for employers, who, if asked,
can plausibly assert that they believe all their workers are legal. It
also means that workers must be paid by the book - with payroll tax
deductions. IRCA, as the immigration act is known, did little to deter
employers from hiring illegal immigrants or to discourage them from
working. But for Social Security's finances, it was a great piece of
legislation. [more]
Article originally appeared on (http://brownwatch.com/).
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