How Unauthorized Immigrants Help Finance Social Security Benefits

Published On Jan 13, 2025, 12:01 AM

Undocumented immigrants contribute significantly to the U.S. Social Security system, paying about $25.7 billion in taxes in 2022, despite being unable to collect benefits. As the Trump administration plans potential mass deportations, economists warn this could lead to a reduction of around $20 billion in cash flow for Social Security, exacerbating existing funding challenges due to demographic shifts such as an aging population and declining birthrates.

Stock Forecasts

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Negative

The potential mass deportation of undocumented workers could negatively impact Social Security funding, leading to concerns about the stability of this program. If characterized as a broader economic slowdown due to decreased workforce participation, the stocks related to social services and retirement plans may suffer.

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