No one is discussing the impact that illegal aliens have on the Social Security system, but a recent comment by Art Cashin raised an interesting point.
There are said to be about 11 million undocumented folks around the country who need immigration reform. Most of them are working at any job they can find to make ends meet.
In order to get most of those jobs, they have to supply their employers with a Social Security number. Since they are undocumented, they don't have a Social Security number so many have to submit a false Social Security number.
That, in turn, means a great many have FICA deducted and sent to a Social Security system from which they will never collect. For each, their employers also contribute in their name.
If those perceptions are correct, those folks and their employers have poured millions and millions of "bonus" dollars into Social Security, yet the system remains broken.
If immigration reform comes, the undocumented may finally get be able to collect Social Security.
The bottom line is this: Social security is headed toward insolvency. Immigration reform will bring insolvency closer.
2 comments:
Excellent point ... which raises the bar for the meaning of "comprehensive reform" ... like, of the entire federal budget.
Good point, I agree with you completely
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