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Amnesty Only Makes SS Solvent For More 2 Years

From the Washington Examiner:

Immigration reform won’t make Social Security solvent

By BYRON YORK | JULY 1, 2013

Advocates of comprehensive immigration reform give many reasons for their effort… But there are other reasons that don’t receive as much attention. For example, during the recent Senate debate, reform supporters expressed hope that a new generation of immigrants would pay for the Baby Boomers’ golden years — and get the nation out of a huge fiscal jam.

"Eighty million Baby Boomers are going to retire in the next 40 years," said Sen. Lindsey Graham, a Republican member of the Gang of Eight. "We are going to need a lot more legal immigration than is in this bill. Who is going to take care of the Baby Boomers when we retire?"

"Our changing demographics have put a strain on our Social Security system," added Democratic Sen. Al Franken. "More young workers paying into the Social Security system will help ease that, and that is precisely what this bill will provide." …

The Congressional Budget Office found that the Gang of Eight bill would increase the deficit by about $14 billion in its first decade. But it would also result in $211 billion in new Social Security tax revenues from legalized immigrants who would be paying taxes but not collecting benefits [for ten years]. It is those new Social Security tax revenues — which theoretically are supposed to go toward paying for Social Security — that allow the Gang to claim their bill reduces the deficit by $197 billion…

But only because they have frontloaded the revenue, just like they did with Obama-Care. But does anyone believe that this requirement will actually be enforced for ten years? But never mind, let’s assume it will for the sake of argument.

But what about the long term? According to Goss, the bill’s long-term benefits are also positive — but just barely, and not in a way that will strengthen the Social Security system as Graham and others claim.

The Social Security Administration’s most recent estimate says the system will become insolvent in 2033. Under the Gang bill, according to Goss’ estimate, even with all those new immigrants paying taxes, the system will become insolvent in 2035. Not much difference there. And after that, when the immigrants hit retirement age and begin collecting benefits, they will increase Social Security’s deficit.

Of course, the immigrants will have children, who will also pay into the system. Put it all together, according to Goss, and immigration reform will add about $2 trillion in tax revenues in the next 75 years, while costing about $1.5 trillion in benefits. That’s a net plus, but not much of a boon, since it is stretched out over more than seven decades — and certainly not when one considers the tendency of federal programs to grow in cost…

In any event, it won’t solve the Boomers’ problem.

Heck, the boomers will all be dead by 2033, let alone 75 years later.

This article was posted by Steve Gilbert on Tuesday, July 2nd, 2013. Comments are currently closed.

One Response to “Amnesty Only Makes SS Solvent For More 2 Years”

  1. Liberals Demise

    FULL STEAM AHEAD ……. DAMN THE CONSEQUENCES
    DAMN THE WILL OF THE PEOPLE
    AND LASTLY ……. DAMN THE POLITICIANS, DOJ, IRS, NSA, MAIN STREAM MEDIA, CBO, SCOTUS
    SELL OUTS ……. ONE AND ALL

    Btw al Frankenstein ……. you are a waste of time and space.
    A slug at best.


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