Policy: Entitlements

Pro-amnesty Republicans push Obamacare tactics on immigration costs

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Politics,Beltway Confidential,Conn Carroll,Immigration,Obamacare,Republican Party,Entitlements

Pro-amnesty Republicans are pushing an Associated Press story reporting that Schumer-Rubio immigration bill would “boost Social Security.” From the AP:

An analysis by the Social Security Administration says a bipartisan immigration bill pending in the Senate would boost the retirement program’s trust fund by adding millions of taxpayers to the economy.

The finding comes in a letter to Sen. Marco Rubio, R-Fla., who requested the analysis, from Stephen C. Gross, chief actuary for the agency.

The analysis says the bill would add more than $300 billion in net additional revenues to Social Security and Medicare over the coming decade.

This finding is actually entirely consistent with The Heritage Foundation study on immigration costs which found that amnesty would cost taxpayers $6.3 trillion. There are two big differences between the two studies, however. First, the Social Security Administration looked at just Social Security and Medicare while Heritage looked at all federal, state, and local programs. Second, and more important, the SSA study only looks at the costs of the first ten years. The Heritage Foundation study, on the other hand, looks at the long-term costs of amnesty to the Social Security system.

As The Heritage Foundation study acknowledges, revenues will increase as illegal immigrants become legal and contribute more in taxes. However, the average illegal immigrant is only 34 years old and therefore will not draw any Social Security benefits within the next ten years. Hence the $300 billion surplus.

This is the exact same tactic the Obama administration used when they tried to sell Obamacare to the American people. First, for programs like the now defunct CLASS Act, the bill banked revenues for a program that would not pay out any benefits for years to come. Obamacare also delayed implementation of the health exchange subsidies so that the full cost would not be realized until it was outside the Congressional Budget Office’s ten-year budget window. In just two years, the true cots of Obamacare have already almost doubled.

Conservatives were not fooled when Obama tried this tactic and they won’t be fooled when Rubio tries it.

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