Re: US Taxes on X-Pats (getting off topic)

At 11:24 PM 8/18/96 -0400, you wrote:
>As I understand the proposal, the immigrant-benefits thing would be for 
>immigrants admitted AFTER the act was, uh, enacted. So, no ex-post-facto 
>problems.
>
>
I know this is getting way off topic...but what I am not clear about is this:

1. Americans living and working in London used to be eligible for certain
benefits from the British social security system, into which they are
required to pay. There is a reciprocal arrangement between the US and UK on
soc sec benefits and payments. The new US law seems to alter that, which
could affect the US citizen living in London, as in, "sorry mate, you can't
come in here with that knife wound, not without your cheque book you can't."

2. Making legal immigrants living in the US pay soc sec "taxes" without
being eligible for benefits sounds pretty unfair, even "unamerican."

Maybe someone who knows more about the law in these matters can clarify.

Stephen

It sounds unfair, for sure. However, the whole thing is a fraud based 
upon a myth. FICA witholding is NOT credited to an individual's account, 
or even to Social Security benefits in general. By statutory law, all 
such receipts go into the Treasury's general fund.

So, they are NOT "social security contributions". Period.