Illegal Immigration & Your Business - Why Illegals May Be Staying

Yesterday, I said how the “concern” about illegal aliens could affect small business people dramatically.

Given how the government is seemingly quick to move on publically popular issues, and even unpopular and stupid issues when it suits them, why is this issue not being addressed?

Perhaps Newsmax.com gives us the reason.

Many illegals who have stolen Social Security numbers in order to work pay into the system.

Because nobody has equity in the system (you pay into a pool that’s immediately distributed unlike, for instance, an IRA or 401k) the money is put into play right away.

That’s a convenient way to boost up a faltering social welfare system without raising new taxes.

That’s good for the feds, but it’s local infrastructure … especially local health care and education that seems to be hit hardest by the influx of illegal workers.

Property taxes normally fund schools and it’s higher paying jobs that normally command health benefits or at least some ability to repay.

Normally the property taxes collected for American workers (even as apartment dwellers) exceeds the amount of property tax revenue per illegal foreign worker.

The ability to collect past due medical expenses on American workers who will show up on the debt collection radar screen is also much higher than for transient foreign workers.

Employers who hire illegals and save a few dollars per hour also leave the rest of the country with the tab for these educational and health services.

Illegal immigrants are creating a huge windfall for the Social Security trust fund, a new analysis by the investment research firm Standard & Poor’s reveals.

Undocumented workers often get jobs using fake Social Security numbers. Wages are withheld from their paychecks for Social Security and Medicare taxes. But when the Social Security Administration gets W-2 forms from their employers, it can’t match their names and Social Security numbers with information in its records.

The taxes these workers have paid go into the Social Security trust fund and their wage data goes into an electronic “earnings suspense file,�? according to a report on the S&P analysis in the San Francisco Chronicle.

“The undocumented workers can’t claim the Social Security benefits they have earned, creating a windfall for the system,�? the Chronicle discloses.

In recent years about $7 billion in taxes were credited to the trust fund annually based on wage items placed in the suspense file, according to Social Security Administration.