April 5, 2005
DON'T WORRY, THE MINUTEMEN WILL MAKE UP THE DIFFERENCE:
Illegal Immigrants Are Bolstering Social Security With Billions (EDUARDO PORTER, 4/05/05, NY Times)
Since illegally crossing the Mexican border into the United States six years ago, Ángel Martínez has done backbreaking work, harvesting asparagus, pruning grapevines and picking the ripe fruit. More recently, he has also washed trucks, often working as much as 70 hours a week, earning $8.50 to $12.75 an hour.Not surprisingly, Mr. Martínez, 28, has not given much thought to Social Security's long-term financial problems. But Mr. Martínez - who comes from the state of Oaxaca in southern Mexico and hiked for two days through the desert to enter the United States near Tecate, some 20 miles east of Tijuana - contributes more than most Americans to the solvency of the nation's public retirement system.
Last year, Mr. Martínez paid about $2,000 toward Social Security and $450 for Medicare through payroll taxes withheld from his wages. Yet unlike most Americans, who will receive some form of a public pension in retirement and will be eligible for Medicare as soon as they turn 65, Mr. Martínez is not entitled to benefits.
He belongs to a big club. 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."
Will we never tire of them exploiting our kindness.... Posted by Orrin Judd at April 5, 2005 11:36 AM
A couple of immediate questions come to mind:
1) How exactly does an illegal immigrant have his or her SS taxes withdrawn by the employer?
2) In the near future SS will almost certainly be means tested. How much do you want to wager that we won't see the NYT run articles pointing out that some randomly selected wealthy American "contributes more than most Americans to the solvency of the nation's public retirement system" because they pay in but don't collect anything?
Posted by: b at April 5, 2005 12:03 PMb:
Ever work with them? It's hilarious. Here are guys with not so much as a drivers license and they have taxes withheld on their paycheck every week.
Posted by: oj at April 5, 2005 12:10 PMNeato. What other "illegal" activities can we legitimize simply because we can tax them?
"...contributes more than most Americans to the solvency of the nation's public retirement system."
More than most? Really?
And, while you're at it, please provide for me the government official who can absolutely, positively and without any reservation whatsoever guarantee that Mr. Martinez won't be entitled to benefits at age 37 years from now? Nevermind, he's probably too busy selling bridges in Brooklyn.
I'll trade SS the difference between Mr. Martinez's $2k/year and what I contribute for an explicit entitlement to do whatever I want with the balance of the contribution and all earnings thereon.
Posted by: John Resnick at April 5, 2005 1:05 PMJohn:
Yes, because they don't get the benefit no matter how much they contribute.
Posted by: oj at April 5, 2005 1:10 PMI'm sure Marcelo Surez-Orozco, co-director of immigration studies at New York University is completely unbiased.
By the way, if these people ever gain legal status via established means or via some future amnesty they can claim SS, and no effort is made to collect back payroll taxes due on past income. So the argument that illegals have positive economic beneftis for SS is not consistent with advocating amnesty or with making it easier for illegals to gain legal status.
Mr. Resnick fears future payments 37 years from now, but under the terms of the currently proposed Bush 'totalization' agreement with Mexico illegal immigrants who worked in the US could become eligible to recieve SS payments in Mexico and without ever having had legal status. So the argument that illegals have positive economic beneftis for SS is not consistent with advocating totalization either.
Posted by: carter at April 5, 2005 5:28 PMProposing to correct their being treated unfairly isn't consistent with saying they are treated unfairly?
Posted by: oj at April 5, 2005 7:55 PMOJ: So there's consequences for doing something illegal(ly)? Who'da thunk? LEGAL immigrants are merely stuck suffering the same "unfairness" as the rest of us when it comes to Social Security. Meanwhile, illegal immigrants aren't betting on the (37 years away Social Security Payments) come -- just ask the overburdened medical system in California.
Posted by: John Resnick at April 6, 2005 5:05 PMJohn:
Yes, but since we depend on them it seems only fair to treat them better.
Posted by: oj at April 6, 2005 5:09 PM