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See other Immigration ArticlesTitle: Social Security Sell-out
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Published: Jan 31, 2007
Author: Crusader
Post Date: 2007-01-31 21:31:53 by Crusader
Views: 826
Well, once again Commissar ... uh President Bush has sidestepped the people's elected Congress and excercised his unlimited dictatorial powers by signing the totalization agreement with Mexico. This he did a few days before the elections so as to divert attention. With the stroke of his pen, he guaranteed the rapid and total bankruptacy of the Social Security Slush Fund. And he managed to keep it quiet until the last week or so. The GAO estimates that about 300,000 Mexican nationals will be immediately eligible to draw Social Security Benefits with the number reaching as many as 3,000,000 in a few years.This will include illegal aliens that managed to work in this country for 18 months without getting caught. Eighteen months is all it takes to get the American taxpayer to support them and their families for life. And if the "sponsor" dies, the spouse and children continue to rape the system as long as they are alive. Heck of a retirement package if I do say so myself.
We have totalization agreements with 20 other countries. The number of foreign nationals from these countries combined is miniscule compared to the number of Mexican nationals waiting for the gravy train. It is estimated that the Mexicans will account for 69% of the foreign nationals in the system. For the other 20 countries, the totalization numbers are just about a wash. We see some payments going out, but we also see a moderate income as well. In the case of Mexico we get virtually nothing and pump millions into the Mexican economy. When questioned about this imbalance, Mr. Bush responded that there are millions of Mexicans living in abject poverty and this will help them come closer to some kind of minimum standard of living.. He probably meant parity with the working middle class here in America. We will be the paymaster and it won't be long before we are working poor.
Few people understand how the "Trust Fund" works. Well in a few words, THERE IS NO TRUST FUND! It is a general ledger cost center. There isn't a dimes difference between the federal income tax and the FICA tax. All monies collected go into the general fund and are spent immediately. All the so-called trust fund has is a large fistful of worthless IOU's from the federal government. When politicians talk about the fund going bankrupt in year such and such, they are actually talking about the point where the federal government takes in less (from ALL sources) than it is paying out to Social Security and Medicare. At this point, the entire income stream of the federal governemnt will be needed just to pay the benefits owed. Last year, the government collected about 160 Billion from FICA taxes. A big IOU went into the pot and the 160 billion was used to deflate the budget deficit numbers.Some economists estimate that by 2040 there will be a need to tax income at about 65-75% just to cover these costs. And we just added another potential 3 million piggies to the trough.
Here in the US, a person is vested in 10 years (40 quarters). In Mexico it takes 24 years to be fully vested. Here in this country, the payout is biased so lower income contributors get back more than they put in. In Mexico, they get what they put in plus interest...no more. This makes the US system very attractive. Many of the potential Mexican participants never worked a day in their lives in Mexico. But after 18 months here they can furnish documentation that they have worked the remaining 8.5 years in Mexico and the US will pony up the pesos. Does the potential for massive fraud exist here? And what happens if they grant amnesty to the estimated 12.5 million illegals already in this country. They all immediately become "taxpayers". Again they can work 18 months and retire simply by supplying the aforementioned "documentation". Remember, they are still Mexican citizens, they are just working here legally. Does anyone really believe that they will pay in anywhere near what they take out?
Fortunately, all is not lost ... yet. When the Congress got wind of the nefarious deed, they pitched a fit. Granted it may just be for show, but there seems to be a movement in Congress to abrogate the agreement over the President's wishes. Will it happen? Will Congress risk Presidential egg-on-face or impoverished American citizens? With the state of affairs in Washington DC ... don't hold your breath.
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