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To: eno_
They most certainly do pay U.S. income taxes, and FICA, and the employer pays their FICA contribution, too, and they cannot be reimbursed for FICA even though many leave after the term of their visas (6 years max - versus 10 years minumum for SS benefits).

That is CURRENTLY true concerning Indians. I may have misread an article that I had found in relation to totalization agreements which do in fact exempt foreign nationals from US FICA. However, Indians amongst others are lobbying Congress to pass totalization treaties with them.

Taxing times: Nasscom pitches for totalisation deal with US, UK

There are bilateral tax treaties with Canada and some Eurpoean countries that enable H1-Bs to pay into their home SS system. But no treaty with India, and no treaty with Russia, at least when I employed a bunch of Russians.

There's MANY countries that have totalization agreements with the US.

From U.S. INTERNATIONAL SOCIAL SECURITY AGREEMENTS

U.S. Social Security Agreements

Country Entry into Force
Italy November 1, 1978
Germany December 1, 1979
Switzerland November 1, 1980
Belgium July 1, 1984
Norway July 1, 1984
Canada August 1, 1984
United Kingdom   January 1, 1985
Sweden January 1, 1987
Spain April 1, 1988
France July 1, 1988
Portugal August 1, 1989
Netherlands  November 1, 1990
Austria November 1, 1991
Finland November 1, 1992
Ireland September 1, 1993
Luxembourg   November 1, 1993
Greece September 1, 1994
South Korea April 1, 2001
Chile December 1, 2001
Australia October 1, 2002

We get and keep ALL their FICA. More than 10 billion per year.

For NOW we get to keep the FICA from Indian nationals. That may change. As far as this 10 billion dollar figure, do you have any source information on that?

135 posted on 11/04/2002 9:14:25 AM PST by FormerLurker
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To: FormerLurker
If H1-B wages are $80B, and the bulk are from low-wage countries (SS tax treaties are mainly with first-world countries with comparable SS tax rates and benenfits), then we are, in fact, raking in nearly 15% of that (which would be $12B) in FICA without any obligation to pay benefits.

That's not counting normal income tax.

And where do you get the idea we pay for universities in India, much less China? Like I said, unless these people are frauds (some certainly are - I have seen some firsthand) or seat-warmers for dishonest consulting firms, smart immigrants are a huge benefit.

I also make a lot of money from working for overseas companies. Last year 30% of my billable hours and 40% of my gross were on project located in Europe. We need to make high-value professional work more easily internationalizable. It's good for us.

I would like to see secure borders and wetbacks out of our schools, hospitals, prisons, and welfare programs first. Sriram the software guy is the least of our worries.

138 posted on 11/04/2002 9:59:58 AM PST by eno_
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