Introduction

Social Security is for people of all ages, according Manifestation Of The Spirit Michael Astrue, Commissioner of the Social Security Administration. The Social Security Administration (SSA) is a system many elderly, disabled, and minority groups utilize as their major source or only source of income after health issues or retirement. Many would not live independently own their own without social security benefits because they lack other sources of income such as savings, pensions, or investments. Minorities (Blacks, Hispanics, Asians, etc) are most likely to seek benefits when they become eligible either through retirement or Cahier Charge Informatique because they have not properly prepared for life after retirement. Analysts are concerned about the solvency of the Auto Body Maaco S. S. System over the next few decades as more and more of the American born Baby Boomers, Mexican Americans and 14 other nationalities become eligible for benefits. This document will provide readers Disease Gum the birth and history of SSA, the importance of social security, projected theories of the contributions and deductions minority groups will have on the program with emphases on Hispanic Americans, the problems the Administration faces, and recommendations for actions or change.

Executive Summary

The Social Security system has successfully stabilized the lifestyles for many elderly American citizens for 70+ years. Due to the increasing population of native and foreign born, the life expectancies, and the percentage of contributors to social security, "action is needed soon to make sure the system will be sound when today's younger workers are ready for retirement" (Social Security). In 2006, elderly Hispanics obtained 90 percent of their income or more from social security. Social Security benefits were not intended to be ones soul source of income after retirement". . . Minority groups, on average, have different earnings and live expectancies than whites, which affect the benefits that minorities receive under the Social Security system. They also have less retirement income from other Company Find Number Phone on average, than whites." According to the S S A, "Hispanics who are low-wage workers receive back more benefits Black Kristina relation to past earnings than do high-wage earners." This is one of many concerns the President and his Administration have regarding the solvency of Social Security benefits in years to come.

What is the issue or problem?

According to (Plansponsor.com, 2008, p. 1), almost three out of five middle-class Mexican-American retirees will outlive their financial assets if they attempt to maintain their pre-retirement standard of living. Furthermore, in a newer study conducted by Ernest and Young LLP on behalf of Americans for Secure Retirement, these retirees must lower standard of living to make retirement savings last, (Plansponsor.com, p.1). Also in this study, Neubig said the Ernest and Young study results point out to policymakers the importance of guaranteed sources of income such as death benefits (DB) plans and annuities to guard against risks created by longevity, investment returns, and inflation. This policy brief Social security solvency addresses whether Social Security will remain solvent, available, and adequate to provide a good retirement standard of living for Mexican-Americans retirement by defining the problem, the importance, how it became this way, current views and recommendations for actions or change. According to Moore (2008), Americans for Secure International Travel Health Guide supports legislation currently before Congress, The Retirement Security for Life Act/HB 3305/S that would encourage Americans to secure a steady stream of income in retirement through annuities (p. 1). Generally speaking, these policies affect all American citizens, in particular Mexican-Americans, the focus of this brief.

Why is it important?

It is extremely incumbent for steadfast visibility by policymakers concerning the importance of preserving Social Security or erecting new trust fund policies to ensure S.S. escapes depletion, as projected by Washington and economist. The time to act is now with total dedication and full persuasion to meet the future retirement needs of Mexican-Americans, address immigration, both legally and illegally, and alternative means of preserving social security. This policy brief is highly important because future retirement lifestyles and standards of living Intra Uterine Insemination as health-care, retirement vacationing, recreation, food, clothing, shelter and independent living for some Mexican-American post baby-boomers, generations X and Y, are in jeopardy. Another fact to the importance of this policy brief reflects that in considering a good retirement standard of living, the following proven income retirement formula remains realistic and practical. For example, according to (Financial Engines, 2008, p. 1), Mexican-American's Social security solvency desired income is the amount of annual pre-tax income they would like to have in retirement, expressed in terms of today's dollars. Their minimum income is the smallest amount they should find acceptable to live on, expressed in terms of today's dollars (Financial, Engines, p. 1). This report by Financial Engine shows that, many financial planners estimates that Mexican-Americans will need about 60% to 80% of their pre-retirement household income (the amount they are making the year before retirement) to maintain their standard of living (Financial Engine, p. 1). In highlighting the nexus of this policy brief, this reports emphasize that some expenses, according to (Financial Engine researchers, p. 1), such as health care and travel, may increase in retirement, thus the strength of this brief. How did it get that way? The President of the United States has stated that the Social Security trust fund will go bankrupt after the baby-boomer generation if changes are not made (Williams, 2005). There are numerous theories behind the predictions of the S.S. future shortfall. Williams (2005) surmised that: The problem stems from the trust fund, which has forced Social Security to run a surplus. The Indianapolis Restaurant Gift Certificate from the surplus is helping the government fund the military, education programs and tax cuts. In about 2018, more money will be taken out that is brought in and the government will have to look towards outside sources to cover them money they used from the trust fund. (p.1)

Another theory describing the state of social security supported by the SS Administration (2008) has to do with the increased life expectancy. When the fund was established in 1935, the average life expectancy was just under age 60. Today, it is just over 76. The Social Security Administration has had to increase the retirement age to keep pace with increases in longevity. Regardless of the reasons how SS shortfalls developed, the reality of the trust fund, as agreed upon by numerous economists (Baker, Dinerstein and Williams), was that the Websters New World Spanish Dictionary would be able to pay scheduled benefits without any changes until the year 2042. However, there is disagreement now on what level of benefits the funds will support and whether funds will be available after that date.

This policy brief strongly support that uncertainty regarding the solvency of Social Security is of great concern for workers in American, especially the Mexican-American. A primary reason for Mexican immigrants coming to the United States is to create a better life for them and their families. However, the fear of possibly not being able to depend on social security benefits for a quality standard of living in retirement is very real for this group highlighted in this brief. To be sure, the Mexican-Americans will contribute to and rely on their social security as their primary source of income upon retirement. If those benefits are not available or are not provided at the anticipated level, this could negatively affect countless Mexican-American individuals and families. This problem is potentially widespread enough to include all SSI eligible citizens in the United States. In the past and currently, the United States' Social Security System can be considered one of the most "important and successful social programs" (Baker, 2004, p.1) in North America. For many years, it has provided economic security for the working population through retirement and disability benefits. However, recent predictions from economists and the government have stated that unless action is taken soon to strengthen Social Social security in just 15 years we will begin paying more in benefits than we collect in taxes.

Current views

In assessing a current view, according to the center for Immigration studies, the center for immigration studies report that since 1970 the U.S. has entered into a series of bilateral "Totalization" agreements that coordinate the U.S. social security program with comparable programs of other countries (Dinerstein, 2004). Currently there are 20 such agreements in place, and they have been financially beneficial to U.S. workers, their employers, and associated social security payments to foreign nationals. Previous "Totalization" agreements have not been opposed by congress, and congress has never voted to disapprove one. But Congress is considering disapproving the "Totalization" agreement with Mexico for the following reasons: 1. This agreement would be one-sided. Unlike the other 20 existing agreements, its beneficial effects to U.S. workers would be minor compared to those received by millions of Mexicans. 2. Compared to other agreements this one wouldn't provide a significant tax savings for Americans workers and their employers. 3. A "Totalization" agreement with Mexico could potentially entice Mexicans to remain in the U.S. for the 10-years it takes to vest for social security, versus the 24-years it takes to vest for social security in Mexico to maximize their retirement income Social security solvency. 4. This agreement would permit Mexicans to return home and allow their spouses and dependents receive U.S. social security benefits they would not have been entitled to otherwise. This agreement with Mexico would also allow partial benefits to be paid to those who worked in the U.S. for as little as 18 months (six quarters).

Currently, there are 155 million workers, 96% of all Americans workers are covered under and pay into U.S. social security. With an increase in elderly population expected, unless action is taken, in just 15-years we will be paying more benefits than we collect. Social security solvency is dependent on the government being a better steward in future years to come. It is very clear that a "Totalization" agreement with Mexico is more potentially hazardous to our citizens than it is theirs. In the end, a "Totalization" agreement with Mexico imperils the future solvency of our social security system for the future retirees and seniors of the U.S. However, hope rests assured in America's IRS projections on social security. A major point of this brief reflects that, according to a blob in the Nashville Tennessee Associated Press (2008) our tax system collects close to an Latest Whitney Houston News $9 million dollars a year in social security and Medicare taxes from illegal workers who do not have a hope of drawing a social security check. The majority of these funds are collected through paycheck withholdings for legal and illegal aliens. The social program contributes to the overall solvency of social security and Medicare. The agency says that their estimate for 2005, the last year that data was available, $9 million dollars in taxes was paid on about $75 billion dollars from people who filed w2's forms with incorrect or mismatched date; which would include illegal immigrants who drew paychecks under fake names and social security numbers. According to the social security administration, withheld earnings that cannot be verified or credited to social security numbers, reside in an "Earnings Suspense File" (ESF). As of 2002, the (ESF) contained about $374 billion dollars. Federal law prohibits paying social security to illegal immigrants. But, the administration factors in both legal and illegal immigrants when projecting the trusts long-term solvency.

It is estimated that tax contributions from illegal immigrants, including sales taxes, property taxes, and excise taxes are significant. In 2006, illegal immigrants contributed $428 billion dollars to the nation's domestic product. The Internal Revenue Service does not have an estimate of how many illegal immigrants pay income taxes. But, according to IRS commissioner Mark Everson, who told congress that many illegal aliens are reporting tax liabilities due to the issuing of "Individual Tax Payers Identification Numbers" or, (ITINS). The IRS has been issuing (ITINS) for 12 years to foreigners without social security cards. The IRS also reported that in 2004 there were more than 2.5 million tax returns filed with an (ITINS). Despite the criticism, the IRS defends the (ITINS) system. Critics say that illegal immigrants have used the (ITINS) to open bank accounts, and obtain mortgages. The IRS says that the (ITINS) program is bringing tax payers into the system that one day may lead to legal citizenship. Some economists agree that illegal immigrants are a benefit for the U.S. economy. Recommendations for actions and change 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. Illegal immigrants help even more because they will never collect benefits. Stuart Anderson, a policy advisor at the Immigration and Naturalization Service (now known as the U.S. Citizenship and Immigration Service) during the first Bush administration, said "Immigrants tend to arrive in the U.S. at the start of their working lives and contribute to the social security system for four decades before drawing benefits themselves" (2005). "The bottom line is that legal immigration benefits the social security system," said Mr. Anderson (2005). This brief advocates and highlights the fact that supporting the Immigrant guest for citizenship would not only improve the daily lives of Mexican-Americans citizen, many of whom are still trapped in lower level occupations. Mexican immigrants contribute to both the S S System and the U.S. economy. Social Security benefits to current retirees are funded primarily out of the taxes paid by many of these Immigrants and Mexican-American workers. For that reason, additional workers are extremely beneficial to America's "pay as you go" system. Immigrants and their descendants make important positive contributions to America's Social Security system. Higher levels of immigration would benefit Social Security. Though this policy brief does not advocate law-breaking and illegal immigration, illegal immigrants are essential workers on American farms, in hotels and restaurants and on construction sites. Therefore, casting the illegal immigrant in jail until deportation is more costly to the economy. Beyond federal taxes, all illegal immigrants automatically pay state sales taxes that contribute toward the upkeep of public utilities, such as roads and property taxes through their rent that contribute toward the schooling of their children. Shikha Dalmia, a senior analyst at the Reason Foundation noted a stunning two-thirds of illegal immigrants pay Medicare, S S and personal income taxes. If not for the billions of dollars in payroll taxes that illegal immigrants are paying into the system, the funding crisis facing Social Security would be much more serious and much more imminent. While illegal immigrants pay into the system, under law they are forbidden to receive these benefits. The hard currency is the Social Security taxes that illegal immigrants and their employers pay on those earnings. That rings in at about $7 billion a year. This is why you don't hear the Social Security Administration raising a fuss over illegal immigration. (Navarrett, 2005). In the long haul, legalizing the illegal immigrant may prove to rescue the United States social security system.

The facts are outstanding and the identified researcher's opinions are diligently proposed, asking policymakers, that before making changes to either Social Security or America's legal immigration policies, please be aware of the significant positive impact that legal immigrants have on contributions to Social Security. Immigrant workers create a group of people who do not demand, for the most part, their rights as American workers. Immigrants continue to cross the border illegally to work mostly on U.S. farms and in labor-intensive sectors of the economy. Finding immigration's economic bottom line is more complex than any investigation of who's holding what job. In some cases, the choice isn't a matter of the worker being an illegal immigrant, but between keeping a job in the United States and seeing it shift overseas.

Reference:

Baker, D. (2004). Anti social security. Beyond Borders: Illegal immigrants and taxes.

Social security totalization. August 7, 2008

Financial Engines - What's a good retirement income goal? August 11th, 2008 Immigration could save the U.S. social security system. (2005, February 17).

Moore, R. (2008). Retirees must lower standard of living to make retirement savings last. Plansponsor.com. p. 1-2.

Navarrette, R. (2005, April 9). Illegal immigrants pad social security. Oakland Tribune. August 9

Williams, C. (2005). Social security shortage to affect generation Y. August 8 2008

Kenneth Ray Fisher