WillowTree
Diamond Member
- Sep 15, 2008
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- #21
The fact is the program is broke its own trustees estimate that its trust fund will run out of money in 2036 and the payroll-tax holiday is only making it broker. That trust holds nothing but federal IOUs; the governments been spending the money for decades.
This wasnt obvious until last year, when Social Security started paying out more than it took in. Bookkeeping legerdemain can disguise the fact, but even the trustees know the jig is up. Says Republican Charles Blahous, one of the six trustees for Social Security and the even-more-broke Medicare: This could be the beginning of the end of the idea that [Social Security] is an earned benefit.
Adds Nancy Altman, the Democrat co-director of a Social Security advocacy group: To have a Democratic president proposing to undo the dedicated revenue . . . its a fundamental change.
It sure is. But it gets worse. Obama not only wants to extend the 2 percent holiday; he also wants to increase the tax break, fully halving the employees share to 3.1 percent, all in the name of tax relief.
Yet unlinking Social Security from its dedicated funding turns it into a welfare program. After all, the Supreme Court ruled in 1960 that recipients have no inherent right to their Social Security benefits and that Congress can change or rescind them at any time. Imagine what they can do when its just another federal giveaway.
Read more: President Obama & the payroll tax—Michael A. Walsh - NYPOST.com
The trust fund will not run out of money in 2036, it will simply not be able to pay out 100% of benefits. Social Security has a 2.6 TRILLION dollar surplus and can pay out 100% of benefits for the next 25 years and 81% of benefits beyond that...without any fixes.
Now, Social Security definitely needs some fixes...for example, lifting the payroll cap.
As to paying for the payroll extension for the next year, a small tax on the wealthiest Americans would not hurt them in the slightest. They likely wouldn't even realize it. The rest of us, on the other hand, would be very aware of a $1000 a year cut in what we bring home. (not you of course Willow, just those of us that work for a living)
Your nasty little digs are not working on me. I worked for a living for 40 years. You're going to have to work 60.. Get used to it.