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U.S. is being 'totaled' by Bush
By Dimitri Vassilaros
TRIBUNE-REVIEW
Sunday, July 16, 2006

Totalization would be a total disaster for Social Security. President George W. Bush is on the verge of giving the lockbox key of the social welfare system to Mexico. Yes, the legal Ponzi scheme that soon will not have enough money for American retirees will need that much more to support Mexicans, too. Mr. Bush's messianic mission to merge this republic with Mexico suggests that unlike his dad, Dubya has the vision thing.

"Totalization" is a contract between the U.S. and another country to equalize the tax burden for Americans working overseas so they will not be taxed twice, according to Marti Dinerstein, fellow at the Center for Immigration Studies and president of Immigration Matters. Another benefit of totalization is that it permits the expatriates working in the other country to qualify for retirement benefits that usually are at least as generous as those here.

The U.S. has totalization agreements with 21 countries that, more or less, would be considered developed, Ms. Dinerstein says. At the end of the day, it's a win-win for both countries.

But "Mexico is profoundly different," she says.

Totalization with Mexico is a rotten deal for the U.S. worker there since the Mexican formula ensures he will get very little while his Mexican counterpart working in America will make out like a bandit. It's a win for only one country.

"Millions of Mexicans here could qualify for Social Security," Dinerstein says. "Unfortunately most of them do not make high salaries; thereby they will get a disproportionate amount of Social Security benefits for themselves and their relatives.

"Most totalization agreements have a clause that makes the family eligible for the retirement benefits," Dinerstein says of the multiplier effect. "When the recipient dies, the spouse is eligible to continue cashing the Social Security checks even if she did not live one minute in America."

It is profoundly unequal because the United States has so few workers in Mexico and illegals from Mexico use fraudulent Social Security numbers, Dinerstein says.

The Social Security Administration's Earnings Suspense File is a little-known but deeply disturbing aspect of illegal immigration. The ESF collects the money the agency should have paid out but could not because of false identities and wrong Social Security numbers. The General Accounting Office claims that a disproportionate share of the money comes from eating and drinking establishments and construction.

Whoda thunk it?

By the end of 2005, $519 billion was credited to the ESF. Guess who gets much of that pot of gold if illegals are granted amnesty or if a totalization sweetheart deal with Mexico allows illegals to collect Social Security benefits on their ill-gotten gains. Given Mr. Bush's track record, that story line is more than plausible.

The Retired Enlisted Association Senior Citizens League recently filed a lawsuit demanding to know the specifics of the totalization agreement with Mexico drawn up in 2004 and awaiting Bush's signature -- probably right after Election Day.

Well, at least America still owns the Grand Canyon.


Dimitri Vassilaros can be reached at dvassilaros@tribweb.com or 412-380-5637.