New immigration reform legislation could have a positive effect on social security and retirement expenses. In a letter to Florida Republican Senator Marco Rubio, a member of the “Gang of Eight” Senators, analysts at the Social Security Administration said the overall effect of the bill on Social Security’s finances could create a net 3.22 million jobs over the next decade and boost U.S. gross domestic product by 1.63 percentage points over that same period. The letter came days after a report from the Heritage Foundation showed that the new bill could cost taxpayers trillions of dollars.
“We estimate a significant increase in both the population and the number of workers paying taxes in the United States as a result of these changes in legal immigration limits,” SSA wrote in the letter.
Social Security Actuary Chief Stephen Goss said most immigrants who do not have citizenship don’t pay taxes. He noted that providing immigrants with a path to citizenship will allow them to be included in taxes, thus helping the nation’s economy. In addition, Goss projected that if the bill’s security stipulations were designed to reduce illegal immigration in the U.S. by half , it would create a positive net growth for the nation’s retirement program.
Senator Marco Rubio said that the Heritage Foundation study is not accurate, and that more people in the system will mean more people paying taxes and benefiting the United States economy.
“The study is not a legitimate study,” Rubio said on “CBS This Morning” on May 9. “It overestimates the number of people that are going to be counted in the system … it includes four million kids that are already living here now … a quarter of the costs are for traffic and police and … public services that are already being provided.”
This information comes as the Senate prepares to debate amendments to the new legislation. Vice President Joe Biden said he is hopeful that the bill will be completed by the end of the summer.