Social Security does not add to the deficit

[Luddly Neddite]

Fact-checkers Sputter And Flop Attempting To Explain How Social Security Works, Affects Deficit

Social Security, by law, does not add to the deficit. It is not a driver of long-term debt. We’ve been over this. The reason no one can get it right is because here in this season of the fiscal cliff, no one is getting anything right. It’s a full-on headless chicken panic. Everyone needs to calm down, about a lot of things, but especially about Social Security, which does not even have to come up during the “fiscal cliff talks” because it’s totally irrelevant to the situation and will only complicate everything needlessly.

So, why do Rs want to take (previously earned and therefore entitled to) money away from the elderly?

 

[Avatar4321]

I don't know. Maybe it's because your candidates have made sure Social security has absolutely zero money in the coffers since you guys started raiding it decades ago and we can do math.

 

[Luddly Neddite]

Wrong.

Wanna try again?

 

[Lakhota]

Social Security doesn't add one penny to the deficit. Not one penny...

 

[Wiseacre]

Yes it does, and this is why. According to the Social Security Trust Fund (SSTF), in 2011 it took in 45 billion less than it paid out. That is a deficit that must be paid for by borrowing money and adding to the deficit. Democrats love to play word games to convince the public there is no problem, but in fact the US Treasury had to borrow money to transfer to the SSTF to cover the $45 billion deficit last year. And in the future that deficit will become larger.

 

[zakdavis]

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

 

[healthmyths]

Fact-checkers Sputter And Flop Attempting To Explain How Social Security Works, Affects Deficit

Social Security, by law, does not add to the deficit. It is not a driver of long-term debt. We’ve been over this. The reason no one can get it right is because here in this season of the fiscal cliff, no one is getting anything right. It’s a full-on headless chicken panic. Everyone needs to calm down, about a lot of things, but especially about Social Security, which does not even have to come up during the “fiscal cliff talks” because it’s totally irrelevant to the situation and will only complicate everything needlessly.

So, why do Rs want to take (previously earned and therefore entitled to) money away from the elderly?

AND YOUR CHART IS FULL OF CRAP!!!
2011 FEDERAL REVENUES!! DUMMY!!1

In 2011 this was the Total Federal Revenues and sources:REPEAT this is total Revenue sources for Federal Government!!!

• Personal income tax $1,015 47.4% people that work for companies that work for profits primarily.
• Social security/Medicare tax $818 35.5% employer pays Half of total paid-- where will that come from???
• Corporate income tax 181 7.8% corporate evil profits generate taxes - then dividends taxed again!
• Customs,Duties, Misc. 131 5.7%
• Excise taxes 72 3.1%
• Estate & Gift 7 0.4%

Total: $2,302 100%




Federal Revenues by Source

NO WHERE NEAR $831 billion dumb f...k

in 2011 SOCIAL SECURITY AND Medicare ONLY $818 billion!
And remember dumb f...KKK
EMPLOYERS pay 53% of that $818 billion !
Employees pay 47% !

YOU dumb..f...ks that want UNIVERSAL HEALTH care ale Obamacare? Where you going to make up the $100 billion a year in SS/Medicare/income/state/local taxes???

 

[Lakhota]

healthmyths deserves an idiot award.

 

[Luddly Neddite]

healthmyths deserves an idiot award.

Hard to tell for sure, but it looks like he might be confused over the difference between what comes in and what goes out. I don't usually read his posts because he seems to be confused about damn near everything but his confusion doesn't stop him for yammering about it.

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

You have a good point. All any of us can do is read and try to figure out whose version to trust.

The right won't trust the left and the left won't trust the right.

And so it goes.

 

[OKTexas]

Yes it does, and this is why. According to the Social Security Trust Fund (SSTF), in 2011 it took in 45 billion less than it paid out. That is a deficit that must be paid for by borrowing money and adding to the deficit. Democrats love to play word games to convince the public there is no problem, but in fact the US Treasury had to borrow money to transfer to the SSTF to cover the $45 billion deficit last year. And in the future that deficit will become larger.

If I'm not mistaken they have had to borrow to cover the SS short fall for last 3-4 years. Maobama payroll tax cut played a huge roll in that. Ya cut funding to a program that was just barely sustaining itself without reducing expenditures you have to cover the difference and pay interest on the borrowed money.

 

[zakdavis]

healthmyths deserves an idiot award.

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

You have a good point. All any of us can do is read and try to figure out whose version to trust.

The right won't trust the left and the left won't trust the right.

And so it goes.

I usually trust to The Economist.

 

[Wiseacre]

Let me try to explain why Luddly's graph in the OP is wrong, and so is his conclusion from it. The $831 Billion coming into the Social Security Trust Fund (SSTF) includes interest from the US Treasury, by virtue of the Treasury Bonds and securities it put into the SSTF during the surplus years when people were actually paying in more than what was paid out ot beneficiaries. Right now, the interest coming in from the US Treasury exceeds the shortfall in SSTF revenue from payers (us), so it looks like the SSTF is solvent and does not add to the deficit. But it does, and this is why:

The interest paid by the US Treasury on the bonds and securities to the SSTF has to come from somewhere. The US Treasury has to borrow money to pay make up for the SSSTF shortfall, which means the debt/deficit went up. Let's plug in some numbers and try to illustrate. BTW, these numbers are projections for this year, and come from HuffPo of all places. So, it must be right I guess.

FACT CHECK: Social Security adds to budget deficit

According to the link, the SSTF has $2.7 trillion in US Bonds which pay interest. In 2012 the SSTF is expected to pay out $789 billion in benefit and admin costs, but only collect $623 billion in payroll taxes and taxes on benefits, which obviously means it is short by $166 billion.

Now - the interest the SSTF gets on the $2.7 trillion in US Bonds amounts to about $110 billion this year. Well guess what, where is the US Treasury going to get the $110 billion it needs to service it's debt to the SSTF? Answer: they have to borrow it. So, debt and deficits go up by $110 billion.

But wait, there's more: there's still $56 billion in SSTF shortfall to be accounted for. Remember than $2.7 trillion in US Treasury Bonds the SSTF has? To cover the $56 billion shortfall the SSTF has to cash in $56 billion in those bonds, so now their account with the US Treasury is reduced to $2.44 trillion. And where does the US Treasury get the $56 billion in redeemed bonds that the SSTF cashed in? Yep, they borrow it and the debt and deficits go up by another $56 billion.

So, in total the total debt/defciits by the US Gov't went up by $166 billion dollars to support the SSTF. Don't let the lefties tell you that Social Security does not affect the debt and deficits. As long as less money in coming in from people paying in than people getting money out in benefits, our debt and deficits are going up. We can argue about which pocket or lockbox it comes out of, that doesn't really matter.

 

[Lakhota]

Wiseacre is a supreme idiot. Really...

 

[Wiseacre]

Wiseacre is a supreme idiot. Really...

Why don't you stop running your mouth and offer an explanation as to why what I said is wrong. I tried to dumb it down for you.

 

[healthmyths]

healthmyths deserves an idiot award.

Hard to tell for sure, but it looks like he might be confused over the difference between what comes in and what goes out. I don't usually read his posts because he seems to be confused about damn near everything but his confusion doesn't stop him for yammering about it.

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

You have a good point. All any of us can do is read and try to figure out whose version to trust.

The right won't trust the left and the left won't trust the right.

And so it goes.

YOU dummy! I was taking the TOTAL paid in for SS AND Medicare and it is less then $818 billion!
The idiot graph stated clearly "SOCIAL SECURITY"!!! And that is incorrect!
Please check closer before you open your fat fingered comments because I'll repeat this:
THE FACTS are $818 billion in SS AND Medicare Revenue... meaning money coming in!
NOT what the idiot showed $831 billion for Social Security!!!!!

 

[healthmyths]

healthmyths deserves an idiot award.

AND YOU can't READ!

MY point is very simple!
The idiot graph SAID SOCIAL SECURITY!

Didn't seem to know that the figure is combined SS and Medicare!
And the total was $818 billion for 2011!
NOT $831 Billion as the idiot's graph shows!

 

[healthmyths]

healthmyths deserves an idiot award.

Hard to tell for sure, but it looks like he might be confused over the difference between what comes in and what goes out. I don't usually read his posts because he seems to be confused about damn near everything but his confusion doesn't stop him for yammering about it.

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

You have a good point. All any of us can do is read and try to figure out whose version to trust.

The right won't trust the left and the left won't trust the right.

And so it goes.

CONFUSION????
IDIOT... The graph clearly stated "SOCIAL SECURITY" $831 billion!
LIE!
It is a combination of Medicare AND SS and the total for 2011 was $818 billion ToTal!

Where in the f...k is the confusion in that???
Please point it out!!!

In fact please go to this site:Trustees Report Summary

WHAT DO the TRUSTEES SAY dumb f...K???

Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983,and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period.


NOW dumb f...ks... what is their solution???

Redemption of trust fund assets from the General Fund of the Treasury will provide the resources needed to offset the annual cash-flow deficits

NOW dumb f...ks!!!

WHERE does the US government GET the money to pay SS when the redeem the TRUST FUND ASSETS??

"After 2020, Treasury will redeem trust fund assets in amounts that exceed interest earnings until exhaustion of trust fund reserves in 2033, three years earlier than projected last year. Thereafter, tax income would be sufficient to pay only about three-quarters of scheduled benefits through 2086.

DO YOU dummies understand that??? THERE IS MORE money going out then coming in so the TRUSTEES are redeeming assets to make up the difference!

 

[healthmyths]

but of course I"M CONFUSED!!!!
From the TRUSTEES report dumb f...ks!!!
Again just in case YOU don't know the consequences!!!

The drawdown of Social Security and HI trust fund reserves and the general revenue transfers into SMI will result in mounting pressure on the Federal budget. In fact, pressure is already evident. For the sixth consecutive year, the Social Security Act requires that the Trustees issue a "Medicare funding warning" because projected non-dedicated sources of revenues—primarily general revenues—are expected to continue to account for more than 45 percent of Medicare's outlays, a threshold breached for the first time in fiscal year 2010.

 

[NYcarbineer]

healthmyths deserves an idiot award.

Hard to tell for sure, but it looks like he might be confused over the difference between what comes in and what goes out. I don't usually read his posts because he seems to be confused about damn near everything but his confusion doesn't stop him for yammering about it.

I won't touch this shit with a ten foot pole, if I were anyone who wasn't a paid economist and government expert.

You have a good point. All any of us can do is read and try to figure out whose version to trust.

The right won't trust the left and the left won't trust the right.

And so it goes.

CONFUSION????
IDIOT... The graph clearly stated "SOCIAL SECURITY" $831 billion!
LIE!
It is a combination of Medicare AND SS and the total for 2011 was $818 billion ToTal!

Where in the f...k is the confusion in that???
Please point it out!!!

In fact please go to this site:Trustees Report Summary

WHAT DO the TRUSTEES SAY dumb f...K???

Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983,and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period.


NOW dumb f...ks... what is their solution???

Redemption of trust fund assets from the General Fund of the Treasury will provide the resources needed to offset the annual cash-flow deficits

NOW dumb f...ks!!!

WHERE does the US government GET the money to pay SS when the redeem the TRUST FUND ASSETS??

"After 2020, Treasury will redeem trust fund assets in amounts that exceed interest earnings until exhaustion of trust fund reserves in 2033, three years earlier than projected last year. Thereafter, tax income would be sufficient to pay only about three-quarters of scheduled benefits through 2086.

DO YOU dummies understand that??? THERE IS MORE money going out then coming in so the TRUSTEES are redeeming assets to make up the difference!

That doesn't mean Social Security isn't paying its own way.

 

[NYcarbineer]

I don't know. Maybe it's because your candidates have made sure Social security has absolutely zero money in the coffers since you guys started raiding it decades ago and we can do math.

It hasn't been 'raided'. It's been invested by loaning it out for the purpose of generating interest income.