Skip to comments.Social Insecurity: Inside the 'Trust Fund' Illusion (Hussein Said to Push Congress to Curb Debt)
Posted on 01/21/2011 1:44:18 PM PST by Libloather
Social Insecurity: Inside the 'Trust Fund' Illusion
By Charles Hugh Smith, DailyFinance
01/21/11 - 11:00 AM EST
NEW YORK (DailyFinance) -- The recent tax deal approved by Congress and the president cut the payroll taxes that employees will contribute to Social Security for 2011 by about a third, and that $112 billion reduction in receipts has advocates of the program worried that the political meddling in Social Security's finances may threaten its viability.
Unfortunately, the Social Security Administration's (SSA) finances have been meddled with for decades, and a one-year tax holiday is the least of the program's problems. As I reported on DailyFinance this week, Social Security is already deep in the red, with outlays exceeding payroll tax revenues by $76 billion in 2010 -- a deficit that wasn't expected to occur until 2018.
Though the program's trustees continue to reassure the public that Social Security's funding is secure through 2037, rising outlays and slumping revenues -- not even counting the "tax holiday" cut -- call that rosy outlook into question. And the trustees' short-term projections have been so far off the mark that the validity of their longer-term estimates must also be in doubt. Their estimate of total revenues was too high by $50 billion in 2010, and their estimate for 2011 income is $855 billion -- fully $114 billion more than the system's 2010 income.
(Excerpt) Read more at thestreet.com ...
Is the rookie Hussein turning into a DINO in just two short years? Maybe that on-the-job-training is kickin' in.
Only an idiot and a fool would believe that this radical, Marxist is a DINO.
***...advocates of the program worried that the political meddling in Social Security’s finances may threaten its viability.****
Here is what was said about Social Security back in 1964!
“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”
and here is where your money goes! Read and weep!
Well these days the US government does not inspire a whole lot of faith.
The government has always repaid Social Security, with interest..
By borrowing more money from unfriendly foreign powers. In reality in the past there was no real repayment of money borrowed from the social security fund only an accounting of repaid funds. Simply numbers on paper. Because SS was bringing in more money than it paid out there was no need to take money from the general fund.
But now the SS system is paying out more than it is bringing in, so those special securities are being redeemed.
The whole system is collapsing just as every Ponsi scheme eventually must.
Well these special securities should have the same disclaimer that mutual fund advertisements do.
Past performance is not a guarantee of future performance.