Quote:
Originally Posted by Rocko20
Interesting article that illustrates how social security can still survive the upcoming baby boomer retirement. But I think the point should still be that millennials shouldn't depend on SS to save them.
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Great, another propaganda and disinformation article from
USless Today.
No one ever said Social Security would run out of money.
The claim has always been that the OASI Trust Fund would be depleted, and the revenues generated would not be sufficient to cover payouts, resulting in a reduction of 25%-35%.
That means is if your monthly check is $2,000 it will be reduced to $1,300 to $1,500.
To suggest that the taxation of benefits is going to save Social Security is absurd.
In September, Social Security fell short again, with losses of $9.2 Billion,
even while taxing benefits. That's better than August, where you lost $15.1 Billion.
The amount collected from the taxation of benefits in September? A whopping $18 Million.
Do you know what that will cover? It will pay 12,820 beneficiaries one month of benefits.
The author of the article is quite ignorant.
Quote:
Originally Posted by augiedogie
There is no hoard of cash in a SS trust fund. The Fed govt is 20 Billion dollars in debt. Back during the LBJ administration, SS and the Fed. Budget were combined, so whatever the news tells you about a SS trust fund is a lie. Its only an acconting trick. The whole Fed govt and SS are 20 Billion in debt.
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More propaganda and disinformation.
Why don't you read the 1939 Amendments to the Social Security Act of 1935.
It states quite clearly in no uncertain terms that any surplus FICA payroll tax revenues are to be transferred to the General Fund and a special treasury security issued in its place.
Note that conversion of the special treasury securities decreases the government debt, and increases the public debt, but does not increase the federal debt.
On top of that, note that the interest on the special treasury securities is higher than the interest of treasury bills, bonds and notes, so that it costs less to service the debt after it has been converted.
Quote:
Originally Posted by pvande55
It is estimated that benefits will be 75% of promised amount if Congress does nothing. Nobody expects that, they will take action shortly before then. The most obvious reform would be to eliminate the wage cap. That plus a slight increase in the rate and a small reduction in benefits would secure the system. What the Congress of 2038 will do is anyone's guess.
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As been proven, eliminating the Social Security wage cap will only generate $126 Billion
per year.
In a few short years, Social Security monthly benefit payments will be $129 Billion
per month.
$126 Billion ≠ $129 Billion
So people get 97% of their benefits for one month, then 65%-75% of their benefits for the other 11 months.
That's not exactly "winning."
In 1983, you could "get away" with a 0.3% FICA payroll tax increase each for employers and employees, but that's because you were only paying out $12.4 Billion per month, and because the ratio of workers to beneficiaries was 3.2:1, and because your monthly short-fall was only 4%.
A 0.3% bump at the last minute won't get it, because you'll be paying $129 Billion per month, you have a ratio of 2.2:1 workers to beneficiaries, and the short-fall will be 25%-35%.
The FICA payroll tax will have to be increased 1.8%-2.2% without or without eliminating the wage cap.
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