You might want to thank an illegal migrant worker — at least the majority of them — for helping keep Social Security afloat.

They are infusing $13 billion a year into the pay-as-you-go program. That’s the conclusion of various think tanks based on a report issued a few years back by the chief actuary of the Social Security Administration.

That $13 billion represents collectively what illegal immigrants working as employees and the businesses that hire them pay annually to Social Security based on a payroll tax that is split 50-50 between worker and employer.

The New American Economy Think Tank cites data that shows 11 million undocumented migrants that are in the United States that have no legal authorization  to work. That said, an estimated 8 million do work.

Many are on the books and many aren’t.

Mentioning the words “illegal immigrants” quickly distorts clear-headed thinking on a lot of economic issues the government faces that impact everyone.

And given we live in California the fallout from distortions politicians on both sides of the aisle use when it comes to economic issues impacted by illegal immigrants impacts us more proportionately than  any other state.

The Public Policy Institute of California notes that nearly a quarter of the country’s 12 million plus undocumented immigrants live in this state.

Those illegal migrants make up more than 6 percent of the state’s population of 39.24 million residents.

And as a reality check, keep in mind more than a quarter of California’s residents are migrants. That means just over 3 out of every 4 migrants are here legally.

Many of the illegal migrants who are working do so using fake Social Security numbers or Social Security numbers they borrow from someone else.

And while they  and their employers pay into the system, the illegal immigrants cannot legally collect benefits as the eight digit number that is sent into the government isn’t tied to a legally established Social Security account in their name.

This happens because the E-Verify process is not required of the vast majority of employers — basically are among smaller business of 20 or so less workers — that provide 88 percent of this nation’s jobs.

A large chunk of illegal migrants are paid under the table meaning both they and their employees escape payroll taxes such as those collected to fund Social Security.

That does the under the table worker no good but it does benefit the businesses by saving them the cost of legally required payroll taxes.

The $13 billion illegal workers and their employers pay each year is just over 11 percent of the $1.222 trillion Social Security generated in 2022. Data published by Social Security shows  $66 billion was generated from interest. Another $49 billion from taxation of benefits when a recipient’s overall  income exceeds established income thresholds.

The payroll taxes collected for the pay-as-you-go program was $1.107 trillion of which $13 billion is what agency number crunchers indicate are funds collected from illegal immigrants who are working.

Illegal immigrants provide great cover for politicians that don’t want to “reform” Social Security.

Those reforms are either one — or a combination of — the following:

*Increasing either the payroll tax rate.

*Reducing the household income of those that can receive benefits in retirement.

*Upping the tax rate on those making about whatever six-figure income level floats someone’s boat  at a particular time it is proposed.

*Deliberately reduce benefit payouts as opposed to when they will be forced to do so.

Outside of expected lifespans plummeting or a significant increase in the birthrate that eventually means more workers, nothing else except general tax dollars shoring up Social Security is going to reduce promised benefits.

Against that backdrop, we need to be clear one point — Social Security is not going broke.

The day is fast approaching, though, where Social Security will not be able to pay full benefits  that people are already receiving or those benefits of those who will eventually receive them.

That is the true bottom line — not the hysterical myth that is also whipped up — when the annual Social Security and Medicare trustees report is used as it was last week.

Based on current payroll deductions, inflation, and economic activity:
*Social Security starting in 2033 will only be able to pay 77 cents of every $1 is committed to potential pay in benefits to retirees.

*Medicare starting in 2031 will be able to cover only 89 percent of Medicare costs.

*The disability trust  fund — that is not Social Security per se — is excepted to be able to cover 100 percent of its projected costs through 2098.

Given all that, if all illegal workers regardless whether they are paid  above or under the table get legal status of migrants it would make Social Security’s outlook worse.

It’s because those paying $13 billion that they cannot tap for retirement now due to their illegal status would be able to tap into Social Security benefits eventually.

That is only half the equation.

There becomes the issue of how do illegal migrants support themselves when they are too old to work? California is addressing that problem in the most expensive way possible which is essentially making them eligible for a wide repertoire of welfare-style programs.

Before someone queues up the usual response that they are getting free handouts, those working illegal migrants are contributing to the general economy by reducing imports, keeping jobs from moving offshore, and filling jobs — construction to the service industry to agriculture — that would go unfilled.

Those that benefit the most, of course, are those businesses that don’t play by the rules.

Given how both sides of the aisle have passed on low hanging fruit to straighten out the migration mess in the form of making so-called Dreamers legal migrants — those brought illegally to this country by their parents  — the Democrats and Republicans share equal blame.

Perhaps it is because the majority of red and blue politicians know making illegal migrants legal will cost their big campaign donors as well as make government funding messes that elected leaders lacking backbone have created by ignoring issues like inadequate Social Security  funding even worse.

 This column is the opinion of editor, Dennis Wyatt, and does not necessarily represent the opinions of The Bulletin or 209 Multimedia. He can be reached at dwyatt@mantecabulletin.com