At CNS News, Terry Jeffrey reports:
If you simultaneously accept estimates published by the Census Bureau and the Chief Actuary of Social Security, then illegal aliens who misused Social Security numbers to work illegally in the United States in 2010 earned more on average than American women did
What? How can this be? Let’s read on.
“Question: Of the unauthorized workers paying OASDI (Old-Age, Survivors, and Disability Insurance) taxes, what is the average level of earnings upon which the taxes are levied and how does that level compare with the broader U.S. labor force?
“Answer: We assume the average level of taxable earnings for these unauthorized workers equals about 80 percent of the average level for all workers. For 2010, we estimate this average level for these unauthorized workers to be about $34,000.”
The Census Bureau’s historical income Table P-43 lists “Workers (Both Sexes Combined) by Median Earnings and Mean Earnings.”
This table says that in 2010, American workers had mean earnings of $42,494. The $34,000 in average taxable earnings the Chief Actuary estimated for illegal aliens paying OASDI taxes does indeed equal 80 percent of that.
Meanwhile, the Census Bureau’s Table P-42 lists “Workers by Mean Earnings and Sex.” It says female workers in the United States in 2010 had mean earnings of $33,771 (in 2010 dollars).
That is slightly less than the $34,000 in average taxable earnings the Chief Actuary estimated for unauthorized workers misusing Social Security Numbers.
Of course, that’s all informed speculation because no one is really sure how many illegals are paying payroll taxes. Speaking of illegals working in the U.S., the article contains another very interesting tidbit about an Inspector General report on the misuse of Social Security numbers.
The Office of the Inspector General of Social Security published its own analysis last August on the misuse of Social Security Numbers.
In 2010, the IG said, employers filed 7.3 million W-2 forms on which the name and the Social Security Number did not match and that SSA could not attribute to a known Social Security Number holder. These W-2s reported $70.3 billion in wages — an average of $9,630 per W-2.
SSA accounted for this $70.3 billion in wages in what it calls the Earnings Suspense File. “The ESF,” said the IG, “has accumulated approximately 320 million wage items representing about $1.1 trillion in wages for TYs 1937 through 2010.”
Said the IG, “In previous reports, SSA acknowledged unauthorized noncitizens’ intentional misuse of SSNs has been a major contributor to ESF growth.”
“Furthermore,” said the IG, “a senior employment tax official at the IRS acknowledged that unauthorized noncitizens accounted for a high percentage of inaccurate wage reporting.”
“In addition,” said the IG, “the IRS was reluctant to impose existing fines or penalties against employers who consistently submitted erroneous or inaccurate wage reports.”
Given the government’s manifest tolerance toward those who employ illegal aliens, how consistent have some of those employers been in filing erroneous or inaccurate W-2s?
The IG looked at the 100 employers in 2007 through 2009 who filed the largest number of bad W-2s and the 100 who filed the largest as a percentage of their payroll. Collectively, these 200 employers filed 2,477,546 no-match W-2s over the three-year period — or 19 percent of all they filed.
One employer filed 117,792 in three years, said the IG, and another had 98 percent on which the name and Social Security Number did not match.as
I’m sure that the Obama regime is on the case getting after that employer.
Harrison J. Bounel has not weighed in.