America’s economy has been in decline for years, and 78 Million Baby Boomers are about to retire. They will then be eligible for massive Social Security Administration (SSA), benefits.
The unlikely happens in a period of economic decline. “saving grace”is the immigrant community, who pays into the Social Security system but does not receive benefits.
The U.S. employs approximately 5 percent of undocumented immigrants. Contrary to popular belief between one-quarter and three-quarters (or more) of undocumented immigrant pay federal, state, and Medicare income taxes. These taxes include Social Security, Medicare, and Social Security taxes. According to the SSA, undocumented immigrant contributed $520 billion to Social Security system in October 2005. This number would grow exponentially if all immigrants were required to get legal status and pay their share.
Despite the lack of progressive immigration policy reforms, immigrants’ tax contributions are quite evident. Undocumented immigrants pay more taxes than they use for public services, even at the state level.
– In 2006, Texas State Comptroller concluded that undocumented immigrants generated $1.58 Billion in state revenues. This was more than the $1.16 Billion they received in state services.
The Oregon Center for Public Policy estimated in 2007 that undocumented immigrant pay the following: state income, excise taxes, property taxes and federal Social Security taxes. “$134 million to $187 million annually.”Oregon employers spent an average of $97 million to $136 millions annually for undocumented workers.
Iowa Policy Project concluded that “undocumented immigrants pay an estimated aggregate amount of $40 million to $62 million in state taxes each year.”
Through their immense purchasing power, immigrants also contribute to tax. The Center for Urban Economic Development at Chicago found that Chicago’s undocumented immigrant population spent $2.81 Billion in 2001. “sustained 31,908 jobs in the local economy.”
As baby boomers retire and the SSA becomes more stretched, immigrants will begin to subsidize Social Security benefits. This will allow millions of Americans to retire. The requirement that undocumented immigrants come out of hiding and obtain legal status will ensure that they not only pay taxes but also play a major role in strengthening the Social Security system. This will provide a fiscal boost for American taxpayers.
Visit The American Immigration Lawyers Association for more information www.aila.org.
