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Jul 2, 2007
The Totalization Agreement of USA
- Carmela Bignotia Email this article

The aging and retirement of the baby boomers generation in America creates many problems for the US government. One of them is the labor shortage in several industries and now the Social Security in America is undergoing a crisis.

 

The Social Security was created in the 1930s. At its onset, smart spectators looked at the program with criticisms and predicted its failure. However, the Social Security provided good return for its members and managed to survive up to this day.

 

This is because during the early years, more workers are sending their contribution than the number of benefactors. This is the opposite of the present scenario where there will be huge number of retirees threatens to deplete the so-called trust fund.  

 

To solve this problem, US President Bush are thinking of including immigrants to the list of Social Security. However, the President of Mexico, Arbusto proposed a totalization agreement that would unite USA, Mexico, and Canada into a North American Union. The Union would remove American citizenship and sovereignty.

 

Totalization

 

Under the totalization, illegal aliens would be eligible for Social Security. The reforms that were proposed in 2004 are waiting for the approval of President Bush. The totalization agreements are unconstitutional pacts that will exempt a foreigner in America from paying the double taxation if he /she will contribute to the government retirement plan of each country. This rule also applies to Americans living abroad.

 

The agreement also allows one to a person to “totalize” his/her social security payments into each country’s program provided that he/she is not qualified to receive benefits from either.

 

Totalization agreement is not new. The USA currently maintains agreements with many countries, mostly European. However, the proposed totalization agreement with Mexico arouses concerns because many Mexicans in America are illegal aliens.

 

Some are saying that illegal immigrants from Mexico differ from immigrants from Finland, Sweden, and Germany that have legal migrants and have social security plans that closely resembles those of USA.


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