FACT CHECK: Social Security adds to budget deficit

Pioneer Press ^ | 8-12-12 | AP

[TurboZamboni]

WASHINGTON—Now that Social Security is paying more in benefits than it collects in taxes, there is a fierce debate among politicians, academics and advocates about whether those shortfalls are adding to the federal budget deficit. The issue is important because the federal government's annual deficit already exceeds $1 trillion, making any more borrowing tough to swallow. If Social Security is adding to the government's financial problems, it becomes even more urgent to fix it.

"Over 77 years and now through 13 recessions, Social Security has not added one penny to our deficit or our debt," Rep. Xavier Becerra, D-Calif., said at a recent hearing by the House Ways and Means Social Security subcommittee. Becerra is the top Democrat on the panel.

"I believe that Social Security has not contributed one nickel to the deficit because it is funded by the payroll tax," Sen. Bernie Sanders, a Vermont independent who heads the Senate Social Security caucus, said in an interview.

[maxwellsmart_agent]

Social Security is not paying more in benefits than it takes in taxes. It is only true if you do not take everything Social Security tax brings in, but only that which they outlay to paying benefits. Social security now takes in more than 50% that goes into the general fund. The democrats do not count that. They now consider that theirs to play with. If Social Security was forced to leave that which they put into the general fund to benefits, we would be good for at least 30 years yet.

[GOPJ]

Ryan said it best - we don’t destroy what people are depending on and have paid for - we make changes to the future program:

“My mom is a Medicare senior in Florida,” Ryan said. “Our point is we need to preserve their benefits, because government made promises to them that they’ve organized their retirements around.

http://www.freerepublic.com/focus/f-news/2917729/posts