Tuesday, April 05, 2005

Illegal immigrants Help Fund Social Security

The New York Times today points out that the illegal immigrants from Mexico who come here and work pay the FICA and Medicare taxes, but will not be entitled to benefits.

"...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. [...]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."

So perhaps the solution to the Social Security problem is to simply open the borders to illegal immigrants and make sure that they can't draw benefits.

That's a joke, people. But it does indicate the high variability of the estimates that go into the projections. The further a projection is carried into the future, the more uncertain its accuracy is.


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