According to a recent article, experts are forecasting that the Social Security system will be utterly insolvent by 2034. The survival of this essential system is entirely dependent on the tax payments of younger workers to support the older workers who are retiring and drawing benefits. As the American population ages and people live longer, the costs of paying out Social Security benefits soon may outweigh the taxes paid by workers. Under the current system, the only thing that can fix this problem is for more workers to pay in more tax dollars.
Immigrants are a valuable part of sustaining the Social Security system. Immigrants, including those who are undocumented, pay billions of dollars into Social Security each year. As these individuals are not eligible to receive Social Security benefits at retirement, they are contributing to Americans’ ability to draw Social Security benefits without deriving any benefit from doing so.
In 2016, which is the most recent year for which data is available, undocumented immigrants added $3.3 billion to the Social Security system. These individuals also added $3.3 billion to Medicare, a benefit that they too will forego, and $9.4 million in state and local taxes. On the whole, undocumented immigrant workers tend to be younger and more likely to be in the workforce than native-born Americans.
Undocumented immigrants who are working in the U.S. receive an Individual Tax Identification Number (ITIN), which allows individuals who have no social security numbers to file tax returns. Even those who do not file tax returns have federal, state, and local taxes deducted from their paychecks. The net result is a significant influx of money to Social Security that is not paid out in benefits to many of the immigrants who are contributing to it. The immigration lawyers of Peek & Toland have handled the immigration cases of countless individuals and businesses facing immigration-related issues. We are here to protect your rights and advocate on your behalf to get the outcome that you are seeking. Call our office today at (512) 474-4445 to set up an appointment with our immigration attorneys.