Social Security Heading South of the Border

TownHall.com ^ | 1/11/03 | Joel Mowbray

[kattracks]

If top officials at the State Department and Social Security Administration have their way, up to $345 billion—or more—could be siphoned from the Social Security “trust fund” over the couple decades, mostly to pay benefits to Mexican citizens who worked illegally in the United States.

The ill-conceived plan was hatched as part of an accord currently being negotiated with Mexico to help align its social-security system with America’s. The U.S. already has similar agreements with 20 nations, mostly in Europe, known as Totalization Agreements. “Totalization” is government-speak for combining, or "totalizing", the Social Security taxes paid into America’s and a foreign country’s respective systems—which allows people who split their careers between two countries to get a harmonized retirement benefit from the two governments.

When media reports of the Mexico pact surfaced last month, the cost was pegged at hundreds of millions of dollars per year, to be paid out to roughly 37,000 Mexican citizens living legally in the U.S. But not mentioned is how the accord with Mexico, as now written, would differ from existing agreements in one key respect: illegal aliens from Mexico would also become eligible for Social Security benefits, which would force costs to skyrocket.

Under current law, people who worked illegally in the United States can only receive Social Security benefits based on taxes paid during that time by becoming citizens or permanent legal residents. Once living lawfully in the U.S., though, someone can receive benefits based on work performed while in the country illegally. The Totalization Agreement with Mexico, however, would make illegal aliens from that country eligible for the same treatment under Social Security as U.S. citizens—without ever becoming legal residents or citizens.

Although the press office from the Social Security Administration (SSA) cautions, “Discussions are still in the preliminary stages,” government sources familiar with the negotiations say that there has been agreement on most significant issues—including the expansion of eligibility for illegal aliens.

An internal SSA memo also indicates that the pact will allow illegal aliens to qualify for Social Security benefits: “Mexican nationals working illegally in the U.S. can currently become entitled to benefits if they have made payments to the Trust Fund that meet the vesting requirements. The Totalization Agreement would include this population of Mexican workers within the overall population of workers covered by this agreement.”

With anywhere from 7 to 11 million illegal aliens in the U.S.—the majority of whom are from Mexico—including illegals in the pact would cost many more billions of dollars per year. The best indicator of how much illegals would receive in benefits would be the amount they have paid in over the years. Since 1990, the amount of Social Security taxes paid into the Earnings Suspense File (ESF)—which consists mostly of sums contributed by illegal aliens—has been increasing rapidly, for a total of nearly $300 billion during that time span, according to SSA's own figures. (Like all government “trust funds,” there’s no money in the ESF, just an accounting of money.) In Social Security's entire history, some $345 billion in Social Security taxes have been paid under bogus or non-work Social Security numbers, the hallmark of taxes paid by illegal aliens.

Some argue that illegal aliens deserve benefits since they already pay Social Security taxes, the fact is that allowing illegals to tap into the entitlement—aside from rewarding illegal behavior—substantially undermine the financial ability to “pay” for a transition to personal account-based reform if the money that would have gone to the accounts is instead funneled to illegal aliens because of the Totalization Agreement.

Finals negotiations—which are overseen by State, but handled on the ground by technocrats from SSA—could be finalized next month, according to an internal SSA memo. And an internal State Department memo indicates that the accord could be implemented as early as this fall. Although the White House would no doubt love to shower Mexico with affection, officials there are not aware of the true size and scope of the agreement—nor is Congress, which has the final say.

A Totalization Agreement with Mexico similar to the others—meaning no inclusion of illegals—would actually be a wise move. Such a deal would allow Mexican citizens who play by the rules to take full advantage of Social Security taxes paid both here and south of the border. But as things stand right now, it is officials at State and SSA who are not playing by the rules—and Congress and the White House should not play along.

©2003 Joel Mowbray

Contact Joel Mowbray | Read his biography

[Pelham]

Another Karl Rove idea?

[Libertarianize the GOP]

http://www.freerepublic.com/perl/bump-list

[Uncle Bill]

Siphoning off Social Security

[patriciaruth]

I think this is another article meant to scare conservatives into peeling away from the Bush administration. I can't believe President Bush or the Republican Congress would do anything this fiscally irresponsible.

[Uncle Bill]

A Pox on Mr. Fox - George Putnam
"It is this reporter's opinion that there are very few political figures, top to bottom, that have the guts to put their political well-being on the line, taking a stand on the continuing invasion of illegal aliens across our porous borders. There are two who have taken a stand: Congressman Ron Paul, R-Texas, and Congressman Tom Tancredo, R-Colo."

Only yesterday I spoke with Congressman Ron Paul, who speaks loud and clear that we are now facing a global Social Security giveaway. He refers to what we have recently discussed as the hijacking of our Social Security system – a looming deal between the administration and the government of Mexico, which would make hundreds of thousands of Mexican citizens eligible for U.S. Social Security benefits.

...It's time for American citizens of all political stripes to stand up for the continuation of the sovereignty of our great nation. Let's stop this horrendous giveaway. Let's stop "totalization" and "globalization."

[Uncle Bill]

FORMER SOCIAL SECURITY EMPLOYEE SENTENCED TO PRISON FOR SELLING SOCIAL SECURITY CARDS TO ILLEGAL ALIENS

If she would have only waited

[Uncle Bill]

The Great Global Social Security Giveaway - Rep. Ron Paul

Immigration Corrupts

Townhall.com
By Paul Craig Roberts
December 11, 2002

If the government cannot control the documents it issues, what is the point of issuing more documents, such as a national identity card?

Last week, U.S. Attorney William S. Duffey Jr. announced the arrest and indictment of Social Security Administration employees in Atlanta for selling Social Security numbers to illegal aliens. The U.S. Attorney's Office described the scheme as a large and lucrative business run by the 28 defendants. [1]

A Social Security number is an important identification document. A person with a Social Security number can easily create an American existence for himself. If an illegal alien can buy a number for work purposes, a terrorist can purchase a number for his purposes.

If a Social Security number can be purchased in Fulton County, Ga., numbers can likely be bought in other locale, as well. If Social Security numbers can be purchased, so also can other identification documents. It recently came to light that a U.S. consular office was selling visas to Muslims.

The U.S. government is very relaxed about illegal aliens. Little is done to protect our borders or to find illegals and deport them. As the Immigration and Naturalization Service does not perform its tasks, why does it exist?

The failure of the INS to protect the United States against entry and the presence of illegal immigrants endangers the integrity of government. Prior to the presence of millions of illegals in our country, there was no illicit demand for Social Security numbers and, thus, no temptation to corruption of Social Security employees. Face it, there is a huge and overlooked cost of illegal immigration -- the corruption of government agencies with power to issue important documents.

Last August, I reported in a column that in its annual report to Congress the U.S. Office of Personnel Management bragged that "preferred minorities" were vastly over-represented in federal employment. As almost all immigrants into the United States, both legal and illegal, are classified as "preferred minorities," recent immigrants will be over-represented in federal employment.

The United States no longer draws its immigrant population from England and Europe, where behavior in accord with the rule of law is second nature to the people. For three decades the United States has been drawing its immigrants from Third World countries, where an office in government is understood by all as a license to collect bribes.

The United States cannot import tens of millions of Third World peoples, forsake assimilation, celebrate multiculturalism and avoid Third World mores. Once the United States has Third World immigrants as prosecutors and police, criminals will be able to purchase their freedom with bribes. Punishment will fall on those who can't meet the price of a bribe.

There is no rational basis for U.S. immigration policy. What drives U.S. immigration policy is the soppy assumption that environment determines behavior. Soppy-minded immigration enthusiasts actually believe that the mere act of crossing our frontier turns the immigrant into an American and infuses the immigrant with American beliefs and habits. The immigrant becomes a law-abiding person in spite of everything his life has taught him to that point.

When Greek and Latin were taught in our schools, Americans understood the challenge of immigration. It was clear to all that Rome under the Germans was different from Rome ruled by Romans.

Today, English itself is falling by the wayside as multiculturalists brand it a "racist" language and stress teaching immigrants their own language and culture. If our language and culture are not passed on to immigrants, where will they learn to value integrity in government and the rule of law?

People are different. Cultures are different. If multiculturalism snuffs out assimilation, America will be the next to go.

[I_Love_My_Husband]

Why not??

He's BEEN doing it all along.

[Mo1]

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[BlackbirdSST]

Damn clintoon's! Oh, they ain't in charge any more. Who to blame? Blackbird.

[BlackbirdSST]

I think this is another article meant to scare conservatives into peeling away from the Bush administration. I can't believe President Bush or the Republican Congress would do anything this fiscally irresponsible. Thanks for clearing that up! So this is just a rumor, is that what I should read from your comment's? Or is it just wishful thinking? Blackbird.

[Crusader21stCentury]

It is President Bush who is leaving the Conservatives. Selling our country down the tubes for cheap labor.

[CyberAnt]

I agree with you - and I also agree that THIS president is more aware of the fragility of the SS system - and for this reason, I do not believe this admin would even discuss such a dissolution of SS monies.

Now, there may be some "appeasers" left over from the x42 tribe in the State Dept who would like to see this happen. The public will not allow this - Bush will be in serious trouble in 2004, if he proposes such a thing.