Undocumented workers and their exclusion from Social Security benefits

by time news

2023-08-15 04:18:53

Undocumented immigrant workers, even after paying taxes using an individual taxpayer identification number (ITIN), cannot receive the Social Security retirement benefits that other people generally get when they reach age 65 or older.

These ITINs are issued to people without a Social Security number for the sole purpose of paying the federal taxes that all workers must pay. But despite contributing significantly to the Social Security system, these workers are excluded from the social safety net. This, of course, has consequences that go beyond the individual, since it affects the financial well-being of thousands of immigrant families who already tend to have much lower incomes than other socioeconomic groups.

The report and a legislative initiative

The report from the Community and Labor Center, published in March and entitled “A Golden Age: California’s Aging Immigrant Workforce and Its Implications for Safety Net Policies”, indicates that in 2019 California workers born outside the country were almost 3 million. Of them, 1,253,625 would be undocumented. Among these workers, a considerable number were over 55 years of age; including 9,558 aged 75 or older, 67,960 between 65 and 74, and 316,539 between 55 and 64.

Given the political polarization surrounding immigration issues and the improbability of Congressional action to resolve this issue, some California politicians and immigrant rights activists are taking action on their own.

In March, Assemblyman Juan Carrillo (D-Palmdale) introduced a bill, AB 1536, which aims to include undocumented immigrants residing in California in the Cash Assistance Program for Immigrants (CAPI). Currently, this program provides monthly benefits only to permanent residents with proper documentation, refugees, and migrants who have applied for asylum. AB 1536 would extend this assistance to undocumented immigrants who are ineligible for other programs because of their immigration status.

Contributions to the Social Security System

Despite their exclusion from benefits, there is clear evidence that undocumented immigrants make substantial contributions to the Social Security system.

In 2019, more than 2.5 million tax returns were filed using an ITIN. This represents almost $6 billion dollars in taxes. A study conducted by New American Economy revealed that undocumented immigrants contribute approximately $13 billion to Social Security and $3 billion to Medicare each year.

This more than significant financial contribution highlights the urgency of addressing exclusion from your benefits. According to California’s legislative agenda, AB 1536 is due to be addressed by the Appropriations committee on August 14. A fundamental test that you must pass.

Undocumented Mexicans among the most affected

By focusing the problem on specific groups, it is concluded that working, paying taxes and not receiving benefits disproportionately affects Mexicans residing in the United States. Due to geographic and historical considerations, this ethnic community constitutes a substantial number of all undocumented immigrants. Of the almost 11 million undocumented, it is estimated that 4.9 million are Mexican.

United States has agreements with 30 countries to protect workers who have been working and paying taxes part of their lives in their home country and part in the United States. These treaties serve to avoid duplicating tax liabilities and provide retirement benefits to those who qualify. Although in 2001 they began negotiations for an agreement with Mexicothis was not legislated and therefore never implemented.

So considering the large number of Mexicans who have worked in the United States and who have made contributions to the Social Security system through their taxes, it is alarming that when they reach old age they do not have a single penny or benefits due to the lack of income. a comprehensive agreement between the two countries. An agreement that recognizes contributions made in one country as valid for the pension system of the other.

a light of hope

This situation, which affects not only Mexican undocumented immigrant workers, but much of the undocumented labor force, and especially those who have reached retirement age, is a pressing concern that requires immediate attention. In this sense, the report from the University of California at Merced underscores the need for policy changes to prevent vulnerable immigrant families from falling into extreme poverty. The proposed bill, AB 1536, offers a beacon of hope, providing relief to those who have contributed significantly to the Social Security system. As this issue progresses, it is essential that legislators and policymakers prioritize equity, inclusion, and the well-being of all those who have contributed to the nation’s prosperity.

This article was supported in whole or in part by funds provided by the State of California, administered by the California State Library and the Latino Media Collaborative.

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