On Tue, 14 Aug 2007 01:58:36 -0400, wrote:

On Mon, 13 Aug 2007 17:46:29 -0400, "Dave"
wrote:

What you've described is not the problem. They are hard working people. The
problem is they don't pay taxes


That is not true at all, in fact the employer is required to take out
the taxes on the SSN they provide, but since it is a phony number,
they will never get anything back from SS. (or a refund from IRS) That
is why the SS administration puts, in big print on the mismatch SSN
form,
"DO NOT TERMINATE AN EMPLOYEE BASED ON THIS REPORT"
They are getting the SS tax and income taxes that they will never have
to pay back.

This is just one of many news stories and reports on the topic that
demonstrate how much illegal immigrants contribute to the Social
Security fund. In fact, the federal government actually plans its
budget around these contributions, which will never return to the
actual workers who paid in the FICA taxes. The hypocrisy of the
Republican party on this issue is rich.

http://www.nytimes.com/2005/04/05/bu...c3 83&ei=5090

April 5, 2005
Illegal Immigrants Are Bolstering Social Security With Billions
By EDUARDO PORTER

[beginning cut]

While it has been evident for years that illegal immigrants pay a
variety of taxes, the extent of their contributions to Social Security
is striking: the money added up to about 10 percent of last year's
surplus - the difference between what the system currently receives in
payroll taxes and what it doles out in pension benefits. Moreover, the
money paid by illegal workers and their employers is factored into all
the Social Security Administration's projections.

Illegal immigration, Marcelo Suárez-Orozco, co-director of immigration
studies at New York University, noted sardonically, could provide "the
fastest way to shore up the long-term finances of Social Security."

It is impossible to know exactly how many illegal immigrant workers
pay taxes. But according to specialists, most of them do. Since 1986,
when the Immigration Reform and Control Act set penalties for
employers who knowingly hire illegal immigrants, most such workers
have been forced to buy fake ID's to get a job.

[more cut]

The file has been mushrooming ever since: $189 billion worth of wages
ended up recorded in the suspense file over the 1990's, two and a half
times the amount of the 1980's.

In the current decade, the file is growing, on average, by more than
$50 billion a year, generating $6 billion to $7 billion in Social
Security tax revenue and about $1.5 billion in Medicare taxes.

In 2002 alone, the last year with figures released by the Social
Security Administration, nine million W-2's with incorrect Social
Security numbers landed in the suspense file, accounting for $56
billion in earnings, or about 1.5 percent of total reported wages.

Social Security officials do not know what fraction of the suspense
file corresponds to the earnings of illegal immigrants. But they
suspect that the portion is significant.

"Our assumption is that about three-quarters of other-than-legal
immigrants pay payroll taxes," said Stephen C. Goss, Social Security's
chief actuary, using the agency's term for illegal immigration.

[cut]

Most immigration helps Social Security's finances, because new
immigrants tend to be of working age and contribute more than they
take from the system. A simulation by Social Security's actuaries
found that if net immigration ran at 1.3 million a year instead of the
900,000 in their central assumption, the system's 75-year funding gap
would narrow to 1.67 percent of total payroll, from 1.92 percent -
savings that come out to half a trillion dollars, valued in today's
money.

Illegal immigrants help even more because they will never collect
benefits. According to Mr. Goss, without the flow of payroll taxes
from wages in the suspense file, the system's long-term funding hole
over 75 years would be 10 percent deeper.

[cut]