Freedom Folks

Tuesday, January 02, 2007

Social Security Totalization Or Mexitude?

Source: tscl

President bush is finalizing a deal to further subsidize Mexican corruption. What? You didn't know that was the purpose of this country?

Totalization agreements exist so that folks living in a foreign country aren't double taxed. Seems fair enough, until it's Mexico's turn...
The U.S. currently has 21 similar agreements in effect with other nations, which are intended to eliminate dual taxation for persons who work outside their country of origin. All of the agreements are with developed nations with economies similar to that of the U.S.

For example, a worker who turns 62 after 1990 generally needs 40 calendar quarters of coverage to receive retirement benefits. Under totalization agreements, workers are allowed to combine earnings from both countries in order to qualify for benefits. The Agreement with Mexico, like other totalization agreements, would allow workers to qualify with just six quarters, or 18 months, of U.S. coverage.

But Mexico's retirement system is radically different than that of other participating countries. For example, only 40 percent of non-government workers participate in Mexico's system, whereas 96 percent of America’s non-government workers do. In addition, the U.S. system is progressive, meaning lower wage earners get back much more than they put in; in Mexico, workers get back only what they put in, plus accrued interest.
Special treatment for a country that treats us like a urinal cake, how lovely.
The Totalization Agreement could allow millions of illegal Mexican workers to draw billions of dollars from the U.S. Social Security Trust Fund.
Or, Mexitude!

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