And This Is Supposed To Reassure Us?

Take a look at a piece from the Department of Homeland Security (DHS) trying to reassure us that the E-Verify error rate is not that high. Using a rather optimistic assumption, DHS comes up with one-half of one percent of all workers having to contact the Social Security Administration to straighten out the mismatch between their name and Social Security number. There are 138 million people employed in the United States, according to the Bureau of Labor Statistics. This would mean only 690,000 people desperately trying to contact the Social Security Administration at a time when the agency cannot adequately answer its telephones and has lines forming outside the doors of some of its offices because they are afraid of losing their jobs. That is a nightmare for Social Security and for those 690,000 people right there.

What I love about this DHS piece is the placid assumption that the 5.3% of people with mismatches who fail to straighten out their records must be illegal aliens and that anyone who worries about that 5.3% is a nasty lover of illegal aliens. No doubt that a lot of that 5.3% are illegal aliens, but anyone who thinks they are all illegal aliens is naive. There is a lot of procrastination in the world. Some significant part of that 5.3% are procrastinators. No one knows what percent of people with mismatches are U.S. citizens who will get thrown out of their jobs because they fail to promptly resolve the mismatch -- or will only make a serious effort to resolve the mismatch after they get thrown out of their jobs.

Wall Street Journal On E-Verify

From a Wall Street Journal editorial:

The Secure America Through Verification and Enforcement Act (SAVE) was introduced by Heath Shuler, a North Carolina Democrat. The bill does nothing to increase legal immigration, which is the only realistic way to decrease illegal immigration. Instead, it throws more money at a mandatory employment verification system (E-Verify) for the nation's six million employers.

The Democrats never intended to pass the measure, mind you. While collecting co-sponsors, Mr. Shuler assured Democrats there would be no action this year. The idea was to provide election-year cover for House Democrats from red states, letting them cite the Shuler bill as proof they are cracking down on illegal immigration.

However, Republicans saw an opportunity to embarrass Democrats by forcing a floor vote on the SAVE Act. Restrictionists Brian Bilbray and Tom Tancredo began a discharge petition drive in early March, eventually gathering 189 of the 218 signatures needed to force a House vote on the bill. Democrats are now backing off the legislation, lest it divide their caucus. ...

This political theater notwithstanding, the SAVE Act deserves to die on the merits. E-Verify is pitched as a check on undocumented workers. But this law would require that every worker in the country run this new verification gauntlet to change jobs.

E-Verify is currently a voluntary pilot program for new workers. About 50,000 employers use it, and studies have revealed problems galore, partly because the Social Security Administration (SSA) database on which it relies contains an error rate of around 4%. With about 55 million new hires in the U.S. annually, a 4% error rate means erroneously flagging some two million people each year. They would then have to visit their local SSA office to prove in person that they have permission to work in their native land.

Keep in mind that the SSA isn't exactly a model of speed and efficiency. By its own admission 50% of calls to branch offices and 25% to the 1-800 number aren't even answered. And what of calls that do get through? It currently takes, on average, more than 500 days to get a decision on a disability appeal. Even if E-Verify were ready for prime time, there's little chance it would reduce illegal immigration. As the CBO analysis concluded, an employment verification mandate is more likely to drive illegal aliens – most of whom now work on the books – into the underground economy, not out of the country.

Poll Results

What do you expect will be the result for Social Security if the "no match" letters go out?

Getting rid of illegal immigrants is so important that I don't care what happens at Social Security (5)	7%
I don't think it will be a big deal for Social Security (2)	3%
I expect some problems for Social Security, but nothing serious (11)	15%
I expect significant problems for Social Security (16)	22%
I expect major problems at Social Security (21)	29%
I expect an incredible crisis for Social Security (18)	25%

Total Votes: 73

Political Pressure Gets Buffalo More ALJs

From the Buffalo News:

In a step to alleviate the severe backlog of disability claims in Western New York, the Social Security Administration will appoint two more administrative law judges to Buffalo area hearing offices, Rep. Brian Higgins announced Friday. ...

After the Social Security Administration released data in March showing Buffalo’s large backlog of disability claims, Higgins, D-Buffalo, and Sen. Hillary Rodham Clinton, DN. Y., wrote to Social Security Administration Commissioner Michael Astrue, calling for the appointment of more judges in the district.

The new hires will reduce the time judges waste commuting back and forth between the Buffalo and Rochester offices, Higgins said.

Higgins said more must be done to lessen the strain on Buffalo- area offices.

“I’m not content with this action,” he said. “It’s wonderful news, but we’re going to keep seeking changes.”

Outcomes Chart

Courtesy of the National Organization of Social Security Claimants Representatives (NOSSCR). Click on the image to see it full size.

SSI County Data Released

Social Security's Office of Policy Data (is that a new name?) has issued a report entitled SSI Recipients by State and County, 2007. Useful for those objecting to a field office closure. Useful to an attorney who wonders where potential clients might live.

Congressional News

A legislative bulletin from the Social Security Administration:

House Passes H.R. 6081, the “Heroes Earnings Assistance and Relief Tax (HEART) Act of 2008”

On May 20, 2008, the House of Representatives passed H.R. 6081, the “Heroes Earnings Assistance and Relief Tax (HEART) Act of 2008,” by a vote of 403 - 0. H.R. 6081 is similar to H.R. 3997, different versions of which passed the House and the Senate last year. (See Legislative Bulletins 110-15 and 110-16.)

The new version of the HEART Act contains the following provisions of interest to SSA:

Taxable Wage Exclusions for Volunteer Firefighters and Medical Responders

• Would amend the Internal Revenue Code and the Social Security Act to exclude from FICA taxable wages any property tax rebate or other qualified benefit provided to volunteer firefighters and emergency medical responders in return for labor services. The IRS has previously ruled that such payments constitute compensation for services performed. Would be effective as if included in Section 5 of the Mortgage Forgiveness Debt Relief Act of 2007 (i.e., January 1, 2008).

Military and National Service Related Changes to the SSI Program

• Would treat most cash military compensation as earned income for SSI purposes, thus allowing the service member to benefit from the SSI program's more favorable consideration of earned income.

• Would codify SSA's policy regarding consideration of privatized military housing allowances. In situations where the allowance is withdrawn directly from a service member's pay by military payroll and paid to the landlord, the allowance would be considered in-kind income and the SSI benefit reduction attributable to the housing allowance would be capped at one-third of the Federal Benefit Rate. In other cases, housing allowances would be considered earned income.

• Would exclude State-provided pensions for aged, blind or disabled veterans (or their spouses) from income consideration for SSI purposes. Such payments would also be excluded as a resource for SSI purposes.

• Would exclude any cash or in-kind benefits provided under an AmeriCorps program from income consideration for SSI purposes. Under current law, AmeriCorp VISTA payments are already excluded from such consideration, but AmeriCorps National Civilian Community Corps and Americorps State/National program payments are countable.

• All SSI-related provisions would be effective for benefits payable for months beginning 60 days after enactment.

Consideration of Offshore Companies for FICA Tax Purposes

• Would end the practice of U.S. government contractors setting up shell companies in foreign jurisdictions to avoid payroll taxes. The legislation amends the Internal Revenue Code and the Social Security Act to treat foreign subsidiaries of U.S. companies performing services under contract with the United States government as American employers for the purpose of Social Security and Medicare payroll taxes. This change would affect U.S. citizens and U.S. residents working for these subsidiaries. Would be effective upon enactment.

The last provision is aimed at military contractors who have been making contract employees in Iraq employees of offshore subsidiaries.

Andrew Biggs Has A Blog

I hate to keep going back to the subject of Andrew Biggs, the vocal proponent of Social Security privatization to whom President Bush gave an interim appointment as Deputy Commissioner of Social Security, but Biggs has not had the good grace to stay out of sight after resigning his position. Biggs now has his own blog. If you wish to travel to an alternative universe, take a look.