But we can’t fix Social Security, AND Medicare, AND Medicaid, AND Obama Care, AND police the whole world.
We finally have to make some choices.
Stop Borrowing Excess Revenue From The Social Security Trust Fund For General Expenditures.
I’ve said for years that Social Security will be “fixed” partly through a deliberate under-reporting of inflation figures that constrains cost-of-living increases over time. Think of it: the government reports inflation of 1.5% while the real rate of inflation is 5% or higher, and it’s obvious what is happening here.
Algore preached about the "lock box" for well over a year way back in 1999 yet the congress, the media and the voters were deaf to the subject.
“Andrew Biggs, resident scholar with the conservative-leaning American Enterprise Institute, argues that another option would be to dial down benefits for middle- and high-income people while maintaining the current system for the poorest Americans.”
That sounds like a good option. Gazillionaires like Barbra Streisand and Michael Moore dont’t need it as much.
Easiest solution: bailout.
One-time payment to pay out everyone the amount they have put into SS, allowing for annual interest. Completely zero the SS Fund.
After that, people have the option each year at taxtime on whether or not they want to contribute to SS or not for the following year.
If not, they are no longer eligible for benefits.
If so, they can select the percentage amount, all proceeds go into the SS Fund, and are NOT OTHERWISE TOUCHED.
You are only eligible for SS up to the amount you’ve paid in, plus annual interests.
How do you fix a Ponzi scheme?
how much does the social security administration itself eat up?
For example, Welfare is KNOWN FACT to be only 30% efficitent- 70% is lost in the bureacracy and only 30% makes it to actual people
How much does SS pay out each year to people, and how much does all the payroll and overhead cost?
SS is a pay as you go system. It has been running in the red since 2010. It has been facing shortfalls since then.
Well start with the basic numbers. The nonpartisan Congressional Budget Office issued its most recent projections for Social Securitys income and outgo Jan. 26, along with its twice-yearly Budget and Economic Outlook. What those numbers show is that Social Security ran a $37 billion deficit last year, is projected to run a $45 billion deficit this year, and more red ink every year thereafter.
Source: CBO Combined OASDI Trust Funds; January 2011 Baseline 26 Jan 2011. Note: See Primary Surplus line (which is negative, indicating a deficit)
Matters are even worse than this chart shows. In December, Congress passed a Social Security tax reduction. Workers are temporarily paying 2 percentage points less, from 6.2 percent to 4.2 percent, in Social Security payroll taxes this calendar year. Since the government is making up the shortfall out of general revenues, CBOs deficit projections for the trust funds do not include that. But CBOs figures predict that the payroll tax holiday will cost the governments general fund $85 billion in this fiscal year and $29 billion in fiscal year 2012 (which starts Oct.1, 2011.) Since every dollar of that will have to be borrowed, the combined effect of the tax holiday and the annual deficits will amount to a $130 billion addition to the federal deficit in the current fiscal year, and $59 billion in fiscal 2012.
Social Security has passed a tipping point. For years it generated more revenue than it consumed, holding down the overall federal deficit and allowing Congress to spend more freely for other things. But those days are gone. Rather than lessening the federal deficit, Social Security has at last as long predicted become a drag on the governments overall finances.
As recently as October, CBO was projecting that it would be 2016 before outlays regularly exceed revenues. But Social Securitys fiscal troubles are more severe than was thought, and the latest projections show the permanent deficits started several years ahead of earlier predictions.
Dont be confused by the fact that the trust funds are projected to continue growing for several more years. Thats because Treasury must still credit interest payments to the funds on the borrowings from earlier years. But unless taxes are increased or other spending is cut severely, the government will have to borrow from the public to pay the interest that it owes to the trust funds.
And dont be misled by those who say the system can pay full benefits until about 2037 without making any changes to the law. Thats true, but does not change the fact that Social Security taxes no longer cover those benefits. The government is now borrowing money to pay them, and will do so every year for the foreseeable future. And keep in mind, if nothing is done, when those trust funds are exhausted, benefits would have to be cut by 22 percent in 2037, and more each year after that, according to the most recent report of the systems trustees. By 2084, the system will generate only enough revenue to pay for 75 percent of promised benefit levels.
But . . . but . . . but . . . . Bubba Clinton and his leftist sycophants told us that Socialist Security didn’t NEED fixing!!
What up wit’ that???
TAX THE RICH, TAX THE RICH, TAX THE RICH. That will fix it. Oh, wait, MAKE CONGRESS CRITTERS PAY INTO SOCIALIZED SECURITY AND DUMP THEIR PRIVATE, CREATED BY THEM, FOR THEM, PAID FOR BY US. That would work better.
If we want to “fix” socialist security (and, I’m not sure it’s worth fixing; it’s a crappy program to begin with!), the first thing that has to happen is to get control of the program away from Congress.
Congress long ago opted out of SS and have their “own” retirement program, yet they still control SS and determine who can collect what SS “benefits” at what age. If they don’t particpate, they can’t legislate!!
No it cant. Socialism cant be fixed, its already working as intended.