- Most workers pay into the programs for their working careers, between 40 and 50 years. But millions of Obama's newly legalized are working-age adults with children, so many could be in their 40s or older. Thus they could pay FICA taxes for the next, say, 15 or 20 years — less than half the average American worker — and be eligible for the full array of Social Security and Medicare benefits.
- In addition, most will be lower-income workers. The U.S. Bureau of Labor Statistics estimates that foreign-born, full-time workers earn about 80% of native-born Americans ($33,500 vs. $41,900). Social Security is a social insurance program and is structured to provide disproportionately more benefits for lower-income workers. Medicare pays the same regardless of how much a worker pays in.
- Given the demographic unknowns, estimating the amnesty's financial cost to our retirement programs — and so to U.S. taxpayers — can only be approximate. But using a basic simulation model, we believe the government will receive about $500 billion in payroll tax revenue (including Part B and drug premiums), and expect it to pay out some $2 trillion in benefits over several decades.
- In one executive order Obama may have created his biggest income transfer scheme yet, and imposed the worst financial challenge to our two already-struggling retirement programs. And millions of Americans can expect to see their taxes go up in the future to pay for it.
Source: Obama's Amnesty Will Create a Fiscal Nightmare for Entitlements, Merrill Matthews and Marke E. Litow, Investor's Business Daily
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