Wednesday, September 22, 2021

White House Ignores Amnesty's $1 Trillion Cost to Social Security and Medicare

To buttress support for the amnesty that Democrats tried to include in the upcoming budget reconciliation bill, the White House Council of Economic Advisers on Friday touted the economic benefits of allowing illegal immigrants to become permanent residents.

The estimate is consistent with recent CBO scores of amnesty legislation, including a $26 billon cost of a smaller amnesty called the "Dream Act" back in 2017.

A detailed report published by CIS back in April found that Social Security and Medicare Part A would incur a net cost of $129,000 per amnesty recipient.

The eight million amnesty recipients in the reconciliation bill thus would have imposed a cost of $1 trillion on the Social Security and Medicare trust funds.

The aforementioned CIS report on Social Security and Medicare found a large net cost despite assuming a 7 percent average wage increase for amnesty recipients.

The Heritage Foundation's 2013 report on the fiscal cost of amnesty also built wage increases into its model, but still came away with trillions of dollars in new spending.

In particular, its omission of amnesty's single largest cost - the effect on the Social Security and Medicare trust funds - suggests that even the CEA knows that such a policy is difficult to defend on fiscal grounds.

https://cis.org/Richwine/White-House-Ignores-Amnestys-1-Trillion-Cost-Social-Security-and-Medicare 

No comments: