June 23, 2007

Trillions and Trillions of Dollars: Immigration-Bill Costs Old Media Won’t Talk About

The late Senator Everett Dirksen had a famous saying on federal spending: “A billion here, a billion there, pretty soon it adds up to real money.”

When it comes to the immigration bill currently being considered by the Senate, Old Media apparently believes: “A trillion here, a trillion there, if it’s a cause we’re okay with, we won’t talk about it.”

The Senior Citizens League issued a press release on Tuesday (HT One News Now) on what it believes is a trillion-dollar (rounded) Social Security-related loophole in the bill:

June 19, 2007 (Washington, DC) – The immigration bill being debated by the Senate would allow over two million illegal workers who received Social Security numbers prior to 2004 to receive more than $966 billion in Social Security benefits by 2040.

Senator Kay Bailey Hutchison introduced an amendment to the bill (S.A. 1415), subsequently passed by voice vote, that would prevent illegal workers who performed illegal work and then obtained a Social Security number after January 1, 2004 from receiving credit for Social Security taxes paid in previous years. However, the amendment does nothing to prevent aliens who obtained “non-work” Social Security numbers prior to 2004 and then performed illegal work from claiming benefits.

The loophole was revealed by TREA Senior Citizens League, a nonpartisan seniors advocacy organization with 1.2 million supporters, based in Alexandria, Virginia.

….. Between 1974 and 2003, the Social Security Administration issued more than seven million “non-work” Social Security numbers, which entitled some foreign nationals – some of whom were illegal aliens – to services such as Medicaid and food stamps. The majority of non-work Social Security numbers were issued during an era of less restrictive immigration policy; in some cases, aliens didn’t need proof of citizenship to receive a number.

Despite their “non-work” status, millions performed unlawful work. Under the Senate legislation currently being considered, this group would be eligible for Social Security benefits.

I have done the math, and believe that if the League is correct about the 2 million eligible illegals, the $966 billion in estimated payouts between now and 2040 is an accurate estimate.

Previously, Robert Rector of the Heritage Foundation has looked at the burdens taxpayers would take on if the immigration bill passes, and has estimated (quote is from a National Review column by Heritage’s Brian Darling) “that this bill will cost the taxpayers $2.6 trillion dollars in retirement costs for the beneficiaries of this bill.” It is not clear whether the amount noted earlier by the Senior Citizens League is in addition to or is already part of what Rector has estimated.

Regardless, Old Media’s coverage of the huge costs of the bill has been rare to non-existent. By contrast, those who remember the late 1990s will recall that media coverage of impeachment-related events rarely failed to mention the cost of Ken Starr’s legal efforts, which ended up being in the neighborhood of $40 ….. million.

A Google News search on “immigration trillion” (without quotes) shows virtually no Old Media items within the past week. The same search at the New York Times on the last 30 days comes up bone dry. The Washington Post? A few op-eds, but no hard-news stories.

How are Old Media’s readers to evaluate the bill without information about its costs? This journalistic failure is one more reason why more and more news consumers are turning to New Media to get basic facts.

Cross-posted at NewsBusters.org.

2 Comments

  1. Rector was on C-SPAN this weekend. I have links and transcribed some of his response to the White House report claiming that immigration is a net positive.

    See: Must See TV: Heritage’s Robert Rector on C-SPAN Washington Journal takes on White House report: Immigration’s Economic Impact

    Comment by Porkopolis — June 25, 2007 @ 12:36 pm

  2. $2.6 trillion extra? Not to worry Tom, it won\’t affect us today or 10 years from now, the extra money will be tacked onto the National Debt like the rest of the SS taxes collected and spent. So instead of SS going bust in 2042, it will happen a lot earlier. Of course none of the politicians in office today will be around to take responsibility for their foolishness, they got their\’s.

    Let\’s see SS holds about $4 trillion in current national debt, system goes bust 2042, that\’s 35 years from now, which is a spending rate of 8.75 years per trillion dollars. So $2.6 trillion represents 22.75 years of payments, which SS was counting on before saying sorry there isn\’t anymore money and we have to jack up your SS taxes to 50%. 35 years minus 22.75 is 12.25 years which puts the SS trust fund going bust in 2019, just two years after the annual SS tax receipts no longer cover the current expenses.

    Yup, the whole PONZI scheme is going to fall apart in 12 years IF they pass this immigration bill and allow illegally earned money to be credited toward SS benefits. Well, I guess I might be wrong about none of the politicians being in office to take responsibility, in fact, they may not be able to collect on their retirement either. Small consolation to the rest of us who paid in for years to get nothing back. You know I am beginning to question whether being an Amercian citizen has any value to it. It looks like all debts and minuses to me.

    Comment by dscott — June 25, 2007 @ 9:30 am

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.