On Friday, we got even more proof of the high costs of inaction on bipartisan commonsense immigration reform.
In a letter to Senator Rubio released on Friday, the independent Social Security Office of the Chief Actuary provided a long-term analysis of the bipartisan Senate-passed Immigration Reform bill, demonstrating that commonsense immigration reform will strengthen Social Security over the long-term. Reform will ensure full Social Security solvency through 2035 and reduce Social Security unfunded liabilities by nearly half a trillion dollars through 2087.
The Social Security long-term report follows the recent analysis from the nonpartisan Congressional Budget Office that showed commonsense immigration reform is good for the budget and good for economic growth. The new Social Security report confirms that the bipartisan Senate-passed Immigration Reform Bill is also good for Social Security. The Senate-passed bill will strengthen the solvency of the Social Security Trust Fund in the short run and the long run by reforming the legal immigration system and by allowing undocumented workers to work above-board and thus ensuring that they pay payroll taxes.
The Actuary’s long-term report confirms that the net effect of the bipartisan Senate-passed Immigration Reform Bill is to strengthen Social Security solvency. The Actuary found that the Senate-passed immigration reform bill will keep the Social Security Trust Fund fully solvent through 2035. (Without reform, the Social Security Actuary and Trustees expect the Social Security Trust Fund to be depleted by 2033.) The Chief Actuary notes that, “Even after depletion of the trust fund reserves, however, the actuarial status of the program is improved because continuing income would be sufficient to pay a higher percentage of scheduled benefits than under current law.” In fact, the Senate-passed bill will reduce the 75-year Social Security shortfall by nearly half a trillion dollars, in present value terms.