the real reason SS is in the mess it is in

[scootrd]

Section 13301 of the Budget Enforcement Act of 1990 made it a violation of federal law to use Social Security revenue for non-Social Security purposes.



Social Security has not contributed a dime to the budget deficits or the soaring national debt. Social Security is funded exclusively by payroll taxes ,FICA , paid into the fund by working Americans. Prior to 1983, Social Security was  “pay-as-you-go” with each generation paying for the benefits of the generation that preceded them.  The 1983 legislation changed the “pay-as-you-go” and now folks were required to pay additional taxes to partially pre-fund their own retirement.

The 1983 payroll tax hike  generated $2.5 trillion that is supposed to be in the trust fund.  If the trust fund actually held this amount full benefits could be paid until at least 2037.  None of the $2.5 trillion made it's way into the trust. The contributions were funneled into the general fund  and used for non-Social Security purposes. It was "borrowed" and spent on wars and other government programs with no provisions in place for repaying the peoples money.

Over the past 25 years, five presidents, and the members of Congress, have Stolen not Borrowed the contributions made by working Americans. it is hard to justify using the word “borrow” from the last 5 congressional and presidential administrations when they had no provisions in place to pay back the debt.

They outright stole it.

Since Social Security would have been fully funded until at least 2037 if the government had not used the money for other things, the only reason that politicians are advocating cuts in Social Security benefits now is to cover up the fact they stole our contributions and do not have the monies with which to pay back the debt owed  to the American worker.

[magooch]

Unfortunately there is a means to pay the debt; it's called Income Tax and unless there are major changes in spending, that tax will have to be adjusted to levels that no one will accept.  And the fight will be joined--spending cuts vs tax increases, or more likely--minor spending cuts and massive tax increases.  Watch out for means testing, no income cap on FICA tax and ever increasing age requirements to receive benefits.  All of which will lead to justifiable disillusionment of the SS system.

[Doublebass73]

They had more important things to spend the money on like welfare, warfare and drug prohibition.

Ponzi schemes are immoral except when the government gets to run them.
Gambling is immoral unless the government gets to be the bookie.
Drugs are immoral unless the government gets to be the dealer.
Prostitution is immoral unless the government gets to be the pimp.

[ironglow]

  And the newly renacted "payroll tax deduction" avoidance will only hasten the demise of the system.
 
   Thanks politicians (both Dems & Reps); ..for robbing us since the 1960s !  The Tea Party elected ones are the only reps who are trying to keep govt honest...and they get hassled for it !

[Swampman]

Socialism in any guise is a bad idea and should be illegal.  Let people's family's support them when they get old.  It worked for eons.

[magooch]

I'm more worried that the seasoned citizens will be called on to support the younger.  In no way would I ever want to depend on family to support me.  Just because it was done in the eons, doesn't make it the way to go. 
 
How about people being responsible for themselves by getting educated, working hard, being frugal and saving and investing for their golden years.  That has been the best plan for eons.

[Cuts Crooked]

Social Security is the most successful annuity-insurance-dependant protection product ever devised by human beings.....nothing like it in the private sector nor will there ever be...
 
..TM7

True! Too bad it's going belly up, I've been paying into it since I was eight years old..........like as not it will not be there for me when I need it.

[scootrd]

Unfortunately there is a means to pay the debt; it's called Income Tax and unless there are major changes in spending, that tax will have to be adjusted to levels that no one will accept. 

Ok so let me see if I have this right. They "borrowed" our American workers monies to fund other endeavors (much like raiding a pension fund) . Now they want to Tax the American Workers again to pay back the initial money they pilfered from us to begin with.

When hundreds of millions of dollars had been stolen from the Teamsters' largest pension fund. It was considered a crime. How is what congress did any different.

It wasn't The GOVT's monies to begin with, It was a self funded American workers fund.  Congress needs to figure out a way to place the ill gotten gains back in the SS fund without  1. lowering our benefits , 2. taxing us again to put our own money back which they stole.  Congress stole it , Congress voted to use it for other than SS, the last 5 administrations are no more than flat out criminals and white collar thugs..no more no less. 

[Hooker]

Deficit and SS robbing is a crime(s)....but those who caused it can be made to pay back by Tobin Tax. When OWSt started talking about a 'Tobin Tax' thats when they got busted up....
Social Security is the most successful annuity-insurance-dependant protection product ever devised by human beings.....nothing like it in the private sector nor will there ever be...
 
..TM7

SS was destined to fail from the beginning just a socialist program over seen by unregulated thieves that will never be affected by it's demise.
To the politicians it's nothing more than a political football that they dangle like a carrot on a string to control the masses and make them jump through hoops like trained monkeys. Recipients of SS include a ever growing number of those who have never paid a dime into the system many are not even citizens of these United States. It floors me to think that an intelligent human being would suggest that anything that we get from the government could be better than what we could get from the private sector. Yeah this is the most successful failure ever devised.

Pat

[smokehouserex]

 
 
  Good Morning & Merry Christmas to All:
  IIRC, the SS program was never designed as a total fund, only as a supplement to the retirement years, was to be voluntary, no taxation. As time went along the snowball effect grew too much money for the thieves too ignore. They seen it as a source of unlimited funds with which to waste on the whims/foolish ideas, so guess what happened, they devised a plan to tap into it. Legislation was passed and the waste of it started. Guess which presidents were in office each new bill was was  passed to pilfer the moneys, you guessed it,  the liberals, Johnson,Carter and Clinton.
  I beleive I am correct here if not please correct me. I'm sure there were some from the other side involved also, so all the blame cannot be p;aced on one party but, it can be placed on one group of people,  THE GOVERNMENT!!!!!!!!!!!  Do they they really represent WE The People?
  HM
  HM

[ironglow]

Scoot says, and rightly so;
  " When hundreds of millions of dollars had been stolen from the Teamsters' largest pension fund. It was considered a crime. How is what congress did any different".
...
    Curiously, millions upon millions of union retirement funds have been pilfered, so as to give the funds to liberal politician's election campaigns.  Not to worry though, Obama bailed out the union pensions...with OUR tax monies..  Indeed, congress should find a way to repay the thefts they have already committed..but don't hold your breath..
    No, the crookedness is not confined to one party..the congress often works in cahoots to "put it to" all of us.

[Dixiejack]

Ironglow,I love that photo of Congress.  It would be funny if it were not portraying the truth.


I started drawing full SS payments when I reached 66 1/2 years.  I still work full time because I can't live on my SS after they take out Medicare and I pay income tax on what I draw.  I also pay SS  and Fed and State income taxes as I already did on my job.  I got a notice last week that starting 1/2012, I am getting a 3% cost of living raise which means that with all the other comes out to a -5% on my SS check starting in 2012. I figure in another couple of years when I will be mandatory retired, I going get Medicaid, foodstamps, welfare, and anything else that I can filch out of the government.  It will never catch up with what they have stolen from me.