How hard is it to understand the facts about Social Security?
Fact: You don’t get back your money. You get someone else’s money. Presently and for the next 13 years, current taxes are enough with a little left over to pay the retirees. There is no “trust fund.”
For years the government has been spending the extra money from payroll taxes left over after retirees were paid. This was accounted for by the issuing of government bonds. These bonds are only good if the government can find the money to make them good. After 2018, the income will no longer pay the retirees. The bonds will have to begin to be paid back. Only a few billion to begin with each year. Each year the shortfall gets larger, until, for example in the year 2027, the shortfall is $200 billion just for that one year! For example, the tax cuts the Democrats refer to as the reason for everything bad, average out over 10 years at $100 billion. The $200 billion figure is only an example. It gets worse until the bonds are exhausted in 2047. The bonds total $5 trillion. This will mean massive tax increases or program cuts or both.
After the bonds are exhausted, payroll taxes will provide for a benefit equal to 75 percent of what is promised. This will cause the need for more tax increases or benefit cuts. Let’s see, retirement at the ripe old age of 75! Remember, we’re already retiring at 68.
Now all you Democrats, tell me there is no problem. Over the years, the surplus should have been invested in the private sector. Gasp! Evil profit-making businesses. What a concept. If that had been done, we would have real assets to tap now when we need them. Personal accounts are the answer. It gets the taxpayers off the hook.
Bill McColl
Everett
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