U.S. Social Security Ties with Mexico is Bad for America

Insight ^ | September 9, 2004 | James R. Edwards

[ApesForEvolution]

TFTP

[Ron H.]

The propaganda "fact" sheet put out by the SSA:

---

Fact Sheet

Social Security

UNITED STATES/MEXICO TOTALIZATION AGREEMENT  

(Aquí en Español)
 

Totalization

• Since the late 1970’s, the U.S. has established international social security agreements that coordinate the U.S. Social Security program with the comparable programs of other countries.

• These international social security agreements are called “totalization agreements” and have two main purposes:

  • Eliminate dual social security taxation that occurs when a worker from one country works in another country and is required to pay social security taxes to both countries on the same earnings. As a result of existing totalization agreements, U.S. workers and employers currently are saving about $800 million annually in foreign taxes they do not have to pay.

  • Help fill gaps in benefit protection for workers who have divided their careers between the U.S. and another country, but who have not worked long enough in one or both countries to qualify for social security benefits. With totalization, workers are allowed to combine work credits from both countries to become eligible for benefits. The benefit amount paid is proportional to the amount of credits earned in the paying country.

An agreement with Mexico

• An agreement with Mexico would save U.S. workers and their employers about $140 million in Mexican social security and health insurance taxes over the first 5 years of the agreement.

• An agreement would also fill the gaps in benefit protection for U.S. workers who have worked in both countries, but not long enough in one or both countries to qualify for benefits.

• Mexico is the second largest trading partner with the U.S. Agreements are already in effect with Canada, the largest trading partner with the U.S., and 19 other countries.

• With Mexico, the U.S. now has signed agreements with eight of its top ten trading partners. Many of these agreements have been in effect for nearly two decades. The two exceptions are China and Taiwan. By law, the U.S. could not enter into agreements with these two countries because they do not have generally applicable social security systems that pay periodic benefits or the actuarial equivalent.

Costs of an agreement with Mexico

• Social Security actuaries estimate that a totalization agreement with Mexico would have a negligible long-range effect on the Trust Funds.

• Costs to the U.S. Social Security system are estimated to average about $105 million per year over the first five years. These costs are for additional benefits to eligible U.S. and Mexican workers and reduced Social Security tax contributions under the dual taxation exemption.

• To put this in perspective, in 2002, costs to the U.S. system for the existing agreement with Canada were about $197 million.

Effective date of an agreement with Mexico

• In the United States, once the agreement is signed, the President will submit the agreement to Congress where it must sit in review for 60 session days. If Congress takes no action during this time, the agreement can move forward.

• In Mexico, once the agreement is signed, the Mexican Senate must approve it.

Countries already having totalization agreements with the U.S.

• The United States currently has Social Security agreements with Canada, Chile, South Korea, Australia and most of Western Europe.

  Country	Effective Date	Country	Effective Date
  Italy	November 1, 1978	Portugal	August 1, 1989
  Germany	December 1, 1979	Netherlands	November 1, 1990
  Switzerland	November 1, 1980	Austria	November 1, 1991
  Belgium	July 1, 1984	Finland	November 1, 1992
  Norway	July 1, 1984	Ireland	September 1, 1993
  Canada	August 1, 1984	Luxembourg	November 1, 1993
  United Kingdom	January 1, 1985	Greece	September 1, 1994
  Sweden	January 1, 1987	South Korea	April 1, 2001
  Spain	April 1, 1988	Chile	December 1, 2001
  France	July 1, 1988	Australia	October 1, 2002

  
   

• More detailed information about these totalization agreements can be found at http://www.socialsecurity.gov/international/.

(Toll-Free) 800-772-1213	www.socialsecurity.gov	(Toll-Free) TTY 800-325-0778

June 2004

[Happy2BMe]

Giving Mexicans Social Security benefits is one of the last dominoes to fall before the house of cards falls in.

[Ron H.]

Have you tried a FOI request?

[azhenfud]

Social Security actuaries estimate that a totalization agreement with Mexico would have a negligible long-range effect on the Trust Funds.

Of course not. Once it's busted, it's busted.

[raybbr]

Entitling Mexican illegal aliens and their family members to Social Security benefits would amount to a subsidy and a huge incentive to immigrate illegally to the United States.

Oh for God's sake. Don't any of these politicians get this???????

I am frustrated to the point of instant anger at these headlines.

[millefleur]

Shouldn't the AARP be all over this one ?
They represent a large voting bloc don't they ?

I'm not retirement age so I may have missed it if they are active in opposing this.

[FITZ]

Mexico's own social security system is in huge trouble and I think this is just another big bailout. Mexicans have been out in the streets protesting changes to their own system --- being given access to checks from the USA certainly helps calm them down.

[FITZ]

It's interesting that such a big plan isn't being discussed at all with the American people. I doubt they really wanted to push this through right before an election but Vicente Fox's political party is having difficulties in Mexico so it's time to hand him something else. Right now we're doing whatever it takes to keep the current elites in power in Mexico even if they won't reform that country.

[mtbopfuyn]

This is disgusting. Follow the money back to Vincente. Welcome to the United States of Mexico.

[FITZ]

It seems that all this give-away is more about keeping those in power in Mexico secure. We're spending ghastly amounts of money to stave off the revolution in Mexico. The longer they don't reform the place -- and reform it the right way -- the more we are going to have to give them.

[television is just wrong]

Not only have they not ever been honest, they laugh at us and think we are really stupid.

Social security is falling apart. There is not enough money now. Add in millions of illegal aliens collecting, and we've got a real mess.

My sisters ex father inlaw from Iran, came here with his work record from Iran and they take his word for who when he worked for. He is receiving a check monthly without never having paid into the system. Someone at S.S. told me that this is happening all over the world. People go to the embassy, and file for SS benefits.

[american spirit]

I believe you're right and I think this whole program to include illegals for $$ is just the beginning. As the FTAA becomes reality and economies are merged under the American Union I bet this program is expanded into Central and S. America. NAFTA greased the skids for all this B.S.

[Ol' Dan Tucker]

texastoo wrote:
You can write the social security department and they will send you a copy of the bill. Good luck on receiving it before this becomes law.

Ron H. wrote:
Have you tried a FOI request?

Just for grins and giggles, I was going to call them today. I imagine it's the sort of like adult entertainment --available if you ask, but not on public display.

[Ol' Dan Tucker]

It's interesting that such a big plan isn't being discussed at all with the American people. I doubt they really wanted to push this through right before an election but Vicente Fox's political party is having difficulties in Mexico so it's time to hand him something else. Right now we're doing whatever it takes to keep the current elites in power in Mexico even if they won't reform that country.

I don't know.

With all of the important issues facing the `merican people, like which elite white boy served less in a war that ended 32 years ago is much more relevent to this election than billions of taxpayer dollars going to Mexican illegal aliens every year.

Now why would Bush want to keep the corrupt power structure in Mexico intact?...

[Ol' Dan Tucker]

Oh for God's sake. Don't any of these politicians get this???????

Of course they get it. They wrote it!

They also know what would become of their political careers if it came out that they wrote it.

This is why both presidential candidates are talking about their service in the Vietnam war.

Naturally, the group of people most able to stop this (FReepers) are asleep at the switch because they've allowed themselves to believe they elected a moral and just man --Jorge W. Arbusto.

Nothing could be further from the truth.

In March, 2004 the GAO rapped Arbusto's knuckles over propaganda created by the Arbusto HHS in order to sell the Medicare package to the `merican people.

An honest man doesn't need to resort to propaganda to move his ideas forward. Which means that Arbusto is neither honest nor is his medicare package good for the country.

And still Bush will probably win the election and FReepers couldn't be happier.

Where is Sean Hannity? Ann Coulter? Rush Limbaugh? Michael Reagan?

All drinking deeply from the Republican trough.

[junta]

Every Mexican with half a brain will enroll this will be huge an entire industry will spring up because of this nonsense.

[FITZ]

Now why would Bush want to keep the corrupt power structure in Mexico intact?...

I don't know if he cares about them per se --- but a lot of American businesses are also down there in Mexico --- and many thanks to NAFTA. They're goal is to get rich --- not make Mexico more stable which those low-paying jobs bringing them all up to the border aren't doing obviously. Someone would stand to lose a lot of money if Mexico goes into it's next revolution. It's not about changing the underlying conditions --- but about holding it off for as long as possible.

[FITZ]

Mexico's own Social Security system is already bankrupt --- we're certainly not combining the two systems to get either one of them working since both are failing --- theirs faster than ours.

This is a major bailout --- we'll add to our growing large deficits to keep their heads above water a little longer --- then maybe we'll go down under together. Both countries pulled under by massive socialism.

[Ron H.]

With all of the important issues facing the `merican people, like which elite white boy served less in a war that ended 32 years ago is much more relevent to this election than billions of taxpayer dollars going to Mexican illegal aliens every year.

Diversion tactics still working as well as they ever did in past elections!