Social Security DOES NOT add to the deficit!!
I don't know why we have to keep talking about this, well yes I do, it's because the hardheaded, mean spirited, social program hating righties keep spewing lies about it!
Social Security, funded separately from rest of the federal budget, quite simply pays benefits to those who have paid in. In order to qualify to draw Social Security, an individual must work and contribute to the program for 10 years. Social Security is not means tested; benefits are paid progressively as a percentage of former earnings and contributions.
The mean Social Security benefit is around $14,000 a year, providing 40 percent of retirement income for the average American. According to the Center on Budget and Policy Priorities, Social Security lifts 20 million Americans out of poverty. And, according to a recent national survey commissioned by the AARP, 85 percent of adults oppose cutting Social Security and half of non-retired adults support paying higher payroll taxes to ensure the systems stays solvent. Younger Americans, while skeptical about the program’s future, are particularly supportive of the program. 90 percent of respondents aged 18 to 29 said they believe Social Security is important.
However, while Social Security is popular, many Americans, particularly young Americans, are skeptical about its future. Much of this can be attributed to the misunderstandings and mistruths that are continuously perpetrated by some in Congress and in the media. Here are the truths behind some of the more common Social Security myths.
1. Social Security adds to the deficit.
Social Security, by law, cannot add to the deficit. It is a separate program, paid into through FICA contributions, with benefits paid only from the revenue it raises. If the trust fund were to be exhausted and current contributions were not adequate to pay benefits, Social Security could not borrow from the general budget. Federal law prohibits Social Security from borrowing.
2. Social Security is broke, and there is no “Trust Fund.”
Conventional wisdom among Social Security skeptics is that the program is out of money now and that there is no Social Security Trust Fund. This is fueled largely by the fact that Social Security did begin to pay more in benefits than it received in taxes earlier than was projected due to the depth of the 2008 recession. Regardless of this fact, The Social Security Trust Fund currently runs a $2.5 trillion surplus. The Economic Policy Institute estimates the surplus will peak at $4.2 trillion in 2024.
Trust Fund intact, with no changes to the program, Social Security is projected to be able to pay 100 percent of benefits until the year 2037. After 2037, Social Security will still be able to pay 75 percent of benefits. A program projected to meet costs almost 3 decades into the future with no adjustments is not a system in crisis. Other government programs would be hard pressed to meet such a standard.
GOT IT??
Common Dreams.org...
Social programs did not cause the deficit
As Seth Freed Wessler notes for ColorLines, deficit hawks’ emphasis on social programs is at odds with the factors that actually created the deficit. The Bush tax cuts, the wars in Iraq and Afghanistan and the bank bailouts are the big-ticket items when it comes to government revenues and expenses. Yet deficit hawks in Congress have been refusing to extend paltry unemployment benefits or food stamps to the people hit hardest by the recession. And pretty soon they’re going to go after Social Security too.
In reality, the deficit is only a problem if investors are afraid that the government will default on its debt. Markets measure this worry with interest rates—high rates mean investors are worried, low rates mean they are not. Right now, interest rates on government bonds are at their lowest in decades. With the recession dragging on and the recovery weakening, now would be a great time for the government to spend more money to create jobs and help those knocked out of work.
Instead, the policy debate features cranky old men whining about 310-million-titted cows.
The truth hurts the wingnuts, but if you really want some truth and a SS fix here's what NEEDS TO BE DONE. Make the rich pay their fair share!! SURPRISE! Right now high earners only pay SS taxes on the first 106,000 of their income! Can you believe that bullshit??! Make the rich pay their fair share, make them pay taxes on ALL their income and SS can be strengthened. All this talk from the deficit commission is crap when it comes to SS. Republicans HATE Social Security and every chance they get they will lie about it but the people aren't buying into their lies...
