Outsourced SS taxes

In "Exporting America" Lou Dobbs says that "at least 750,000 American jobs were lost as a direct result of NAFTA". If these jobs were still in the US, the job holders would probably be making at least $30,000 a year. So, since the SS tax is about 12% a year, that's $3600 a year per worker that the SS system is not getting. Multiply $3600 by 750,000 workers and you get $2.7 billion. That's the amount lost to the SS system because of outsourced NAFTA jobs.

It might be a good idea for companies that outsource jobs to pay into the SS system the SS taxes being lost by the outsourcing. ARPA says that the amount the SS collects in recent years is about $627 billion, of which $461 billion is paid out and $165 billion is used to buy US Government bonds. That lost $2.7 billion is only 1.6% of the $165 billion going into the trust fund, but it is hardly negligible.

Further, Dobbs says that by 2015, $151 billion in wages will have been shifted from the US. If the SS tax stays the same, 12% of $151 billion is $18.12 billion. This is $18 billion that the SS system will lose every year unless Congress acts. Hardly trivial.

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