Social Security to Start Cashing Uncle Sam's IOUs

[☭proletarian☭]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

 

[RetiredGySgt]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

And just WHERE will the Government get the money from?

 

[elvis]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

And just WHERE will the Government get the money from?

just print more money?

 

[Annie]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

And just WHERE will the Government get the money from?

Well if the Dems are able to pass health care as they are determined to do, they won't start paying out on that for 4 years, but will collect right away. Perhaps they will lend SSI some of that? Out of the 'lock box.'

 

[chanel]

Ha ha. Extra money for seniors? That money will most likely go to:

Sec. 103. Investment in historically Black colleges and universities and other
minority-serving institutions.

Sec. 208. Loan repayment for civil legal assistance attorneys.

CHAPTER1—GRANTS FOR MODERNIZATION, RENOVATION, O REPAIR OF PUBLICSCHOOLFACILITIES

CHAPTER2—SUPPLEMENTAL GRANTS FOR LOUISIANA, MISSISSIPPI, AND ALABAMA

TITLE IV—EARLY LEARNING CHALLENGE FUND

Sec. 503. Grants to eligible entities for community college reform.

http://www.usmessageboard.com/polit...llege-school-construction-early-learning.html

Of course anyone who challenges WHY this is part of the HC bill must be racist, anti-education, and hate babies.

 

[Gatekeeper]

That old IRS joke for a Short Form......

How much you got?

Send it ALL IN ....... may not be a joke after all.

 

[chanel]

Gee I wonder if they've considered how amnesty for illegals might drain the SSA.

We need to get our fiscal house in order before ANY new entitlements are even proposed. (Yeah right)

 

[Old Rocks]

Apply the 6.2% that I pay out of my paycheck to all income, period. Problem solved.

 

[☭proletarian☭]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

And just WHERE will the Government get the money from?

I always suspected you didn't know how to read.

Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.

 

[boedicca]

The timing on this is Just Great!

Moody's is considering downgrading the U.S."

The U.S. and the U.K. have moved “substantially” closer to losing their AAA credit ratings as the cost of servicing their debt rose, according to Moody’s Investors Service.

The governments of the two economies must balance bringing down their debt burdens without damaging growth by removing fiscal stimulus too quickly, Pierre Cailleteau, managing director of sovereign risk at Moody’s in London, said in a telephone interview.

Under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013, Moody’s said today in a report.

“We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing,” Cailleteau said. “This story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”

The pound fell against the dollar and the euro for the first time in three days, depreciating 0.8 percent to $1.5090, while the dollar index snapped a four-day drop, adding 0.3 percent to 90.075.

The U.S. government will spend about 7 percent of its revenue servicing debt in 2010 and almost 11 percent in 2013, according to the baseline scenario of moderate economic recovery, fiscal adjustments in line with government plans and a gradual increase in interest rates, Moody’s said. ...

U.S., U.K. Move Closer to Losing Rating, Moody?s Says (Update1) - Bloomberg.com


So these SS "redemptions" are going to be covered with more expensive debt, rendering the Obama budget even more fictitious.

 

[Granny]

As a recipient of Social Security I think I'm probably entitled to an opinion. I've paid into Social Security all my working life and in one respect don't feel too bad about getting back a small portion of what I put in.

This social program was instituted by FDR (D/Progressive) to care for people in their old age. Over the decades all employees have had a SS/Medicare deduction taken out of their gross pay and the employer makes (I think) a matching contribution for each employee. Medicare is a medical subsidy that works hand in hand with Social Security. SS recipients have a premium deduction right off the top of their SS payment and Medicare doesn't pay that much or cover all situations. Thus, the so-called "gap insurance" - for which SS recipients pay an insurance premium to cover what isn't covered by Medicare.

In very simple terms, there are several factors playing into this program. "Tomorrow" is always a long way off and, unfortunately, Congress has borrowed great sums out of the SS Pool to fund this, that or the other thing ... because they could get it all repaid before "tomorrow" got here. Well, "tomorrow" is here and the funds have not been repaid so we're now faced with a social program that's just about busted. Another factor is the much longer life expectancy of older people. Another factor is that after WWII ended and soldiers returned, babies started popping out all over the place - thus the "Boomers." Well the Boomers grew up and a good number of them had to have these awesome jobs and show those men that, by God, these women were smart. (Of course they always were, but that's another story.) They wanted jobs instead of families - didn't need any babies standing in the way of their awesome career goals. (It also led to the cry of women's choice of what they could do with their bodies and abortions, etc. - still another story). Now the mass of Boomers that sprang up are reaching retirement age, but because they opted to not have children, the work force that is expected to fund SS is much smaller than the mass of Boomers.

I think Social Security should be phased out. It will take awhile and government may still have to support the program for awhile, but I think it can ultimately be phased out.

Why can't employees be mandated to open a retirement account with the bank of their choice into which their employer makes a "retirement fund" payment out of the employee's check and to which the employer makes a matching contribution (just as is done now, except that the money would would go into the employee's private retirement fund and not to the government). Employees should be able to make additional contributions to their "retirement account" if they wish. The employee would own his or her retirement account and could direct the bank how to invest their money, but be restricted on what they can or cannot take out of the retirement account - just like most employer owned IRAs or 401(k) plans require. You can't remove funds because you saw a fancy car you want or for a super vacation - but you can BORROW for a medical emergency or a stated amount for a down payment on a first home. The bank could inform the employer of the loan repayment amount and the employer would deduct the loan payment off the gross pay of the employee - just as they do if an employee borrows money from an employer-sponsored plan. The employee could leave the money where it is, or if they make a move from Cincinnati to LA they could open up a new bank account and have the original bank make a direct rollover to a new account and the new employer could make the proper payroll deductions to the new account.

Instead of the government making or not making good investments, the employee could direct the bank how to invest or just let the bank invest as they see fit. The money adds up over an employee's working life and the government has no control whatsoever over the retirement fund. The government could defer any taxes on the account until payments start being distributed to the now retired person. Social Security phases completely out, people have themselves prepared for their own retirement and don't owe the government a damned thing except may deferred taxes.

I'm not a mathematician, but it seems a lot better than taking chances with government waste, etc.

'Nuff said.

 

[CrusaderFrank]

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.


The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration.
It's time to start cashing them in.

FOXNews.com - Social Security to Start Cashing Uncle Sam's IOUs

And just WHERE will the Government get the money from?

The $64,000 Question

 

[uscitizen]

I thought Bush promised to fix SS?

 

[Annie]

I thought Bush promised to fix SS?

He tried, the Dems said no. Too late now, it will go the way of the dodo.

 

[Old Rocks]

No, SS will not go the way of the Dodo. It is a good program, one of the best.

The reason that it came into existance is that there were all too many working men that saw everything they had go away in the Great Depression. All the nonsense about people investing for their retirement, without any backup at all should have ended with the present very close call to a return to the days of '29.

Social Security is here to stay, it will just have to be better funded. And there are many ways of doing this. Raise the upper limit to $250,000 would go a long way to closing the present gap. A universal SS tax would fund it indefinately.

 

[uscitizen]

I thought Bush promised to fix SS?

He tried, the Dems said no. Too late now, it will go the way of the dodo.

And what was the number of the bill introduced?