[DustyMoment]

What seems to be missing in all of the discussion is that Congress has grabbed all of the money that was supposed to be set aside for SS and spent it. All that exists to pay SS bebefits to baby boomers is a bunch of IOUs that aren't worth ther paper they are printed on.

This was inevitable because it gives Congress a way out of having to explain why SS in bankrupt when baby boomers have no benefits to draw.

This should do much to please the Gen X & Yers who have previously whined about "selfish baby boomers". Yeah, I am thrilled to have had a portion of my earnings confiscated by the government for the past 30+ years so that I can get nothing back.

Government! Gotta love it.

[AuntB]

"What seems to be missing in all of the discussion is that Congress has grabbed all of the money that was supposed to be set aside for SS and spent it. All that exists to pay SS bebefits to baby boomers is a bunch of IOUs that aren't worth ther paper they are printed on"

A start would be to remove SSI (Supplemental Security Income) out of the Social Security arena all together. These payments go to people who have not paid into the SS system...it is welfare and and has no place in our paid into retirement/disability. Also see post #118, 122

[Pitchfork]

Exactly!!
We should all recall for a moment that the payroll-tax funded Social Security system was more than solvent it was in surplus!! I'm not sure why it is fair to argue that because we drastically cut taxes on high income earners that we need to now pay for that by reducing the benefits (either through more restrictive COLA or retirement age conditions) that hard working contributors have more than paid for!
I certainly favor shifting toward an end to SS and a private savings system, but that require some kind of phase in period and the shifting of funds FROM general tax revenues TO the SS system to support SS payments while payroll taxes were slowly ratcheted to zero. Right now it seems Greenspan is advocating the transfer of funds from the SS system to the pockets of high income earners who benefited from that last tax break. That's not going to sell well anywhere but at the country club.