Uncle Sam's men cheat on Desis pros--Nice way to balance deficit

K

kizakka

Registered Users (C)
Here's how: Over 200,000 Indian professionals working in the US have about 20% of their salary deducted for social security retirement benefits, which go to the US treasury. Logically, this money should be given back to them when they return to India, since they won't be spending their retired life in the US. But American law stipulates that retirement benefits will be made available only after one has completed 40 quarters of work in the US.

Most Indians don't stay that long, and therefore end up contributing that money to the US treasury. IT professionals alone contribute $600 million annually, according to Nasscom. Professionals in medicine, financial services, consultancy, among others, are also heavy contributors

please read the news appeared in India Times link

http://timesofindia.indiatimes.com/articleshow/810151.cms
 
Social Security is one of the taxes that we pay in the US. US workers pay it, whether or not they collect any benefits. Aliens get very limited benefits from paying state and federal taxes too, but that does not mean that the alien is exempt from them. Wealthy individuals and individuals who continue to work until the day they die obtain limited benefits from Social Security too, but again they must pay. BTW, the 2004 contribution rate, also known as the FICA tax rate, is 7.65% for employees and 15.30% for self-employed People, not 20% as you stated.
 
As usual the Indian Print media roaming between Juptier and Saturn. As mentioned by Jim for most of the Nascomm related professionals, the Social Security tax will be around 7%.
 
Yes, you guys are right as far as "Printing mistake or accuracy related with % social security" in article is concerned but as far as " Ethics" are concerned article seems to be right.. Don't you think so? Put yourself in shoes of those returning back professionals.. Both governments should sit together to work out this problem.. 1) As a layman I can think of transferring those social security fund (Contributed till permanent exit out of USA) to provident fund (Prevalent in India) once the person moves in India permanently. 2) If person goes out of USA to other country then his Social security fund should go to such system which may be prevalent in that particular country if any such system exists otherwise that person should get this fund ... The only logical and ethical thing I can see in present system is that person gets it back at retired age but that to if he has gathered 40 credits.. so If you are an alien and if you are out of USA before gathering those 40 credits you are a looser..
 
bharatpremi said:
Both governments should sit together to work out this problem
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That is the key out here. But why would the US govt. want to waste time on this if there is no benefit for them?!
 
What would happen to US Citizen's contribution in the social security fund if he/she would stop working permanently till death (Hypothetical Scenerio) before gathering 40 credits ? What I belive if US Citizen does not get back his/her accumulated fund in above mentioned scenerio then it is not worth to go into logical arguments further for "Alien Professional" and if not then to me Alien Professional's case is ethically stronger.
 
>That is the key out here. But why would the US govt.
>want to waste time on this if there is no benefit for them?!

Are we talking about ethics here or benefit ? You deposit your money in a bank for future use, for instance. What if bank does not give it back to you when you need it ? What do they lose ? Nothing. You are the loser. In bank's case, they can't do that, because there are laws governing them. In the above case of social security, the system is not designed for foreigners. So aliens cant do anything, but accept the injustice, unless Uncle Sam wakes up one day, and feels bad when he looks at himself in the mirror !
 
nshalady said:
So aliens cant do anything, but accept the injustice, unless Uncle Sam wakes up one day, and feels bad when he looks at himself in the mirror !
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:D :rolleyes: :D
 
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