US agrees to discuss social security tax burden of Indians working in America
USA/ INDIA The US has finally agreed to discuss the vexed social security tax issue, which is a first step towards arriving at a ‘totalisation agreement’ that could allow Indian professionals working in America to get beck their social security deposits after their working visa expire, three officials said. According to an industry estimate, Indians working in the US forfeit almost $1 billion annually as social security tax. For the first time in almost a decade, the US has recently acknowledged that social security tax is a bilateral issue and has agreed to discuss it, which is a major feat, said the officials working in three different ministries, requesting anonymity. “Last week, commerce secretary Wilbur Ross told commerce minister Piyush Goyal that the issue of social security tax could be discussed. This signifies India and USA are increasingly having stronger ties. It is certainly an extremely important development that India was trying bring on the table for several years without much success,” one of the officials mentioned above, who works in the ministry of external affairs (MEA) said. Indian workers, particularly IT professionals, make huge social security contributions in the US social security scheme while they work in America, but most of them come back home before they are eligible to withdraw money from their social security contributions, leave their savings behind. A Totalisation Agreement between the two countries would save them from this financial loss. A second person, who works in the commerce ministry, said Goyal had raised the matter in a teleconversation with Ross on July 16 and the US commerce secretary response was positive. Ross offered to arrange a meeting between the US Social Security Administrator and Indian officials to discuss the matter and find a possible solution, he said. It is expected that a team of Indian officials representing ministries of external affairs, commerce and labour would take this matter further. “This has opened up the possibility of initiating exploratory talks. A final solution would emerge after several rounds of talks, which may take several months. But, at least we are moving in the right direction,” the first official said. ( Hindustani Times )