Thread: How to handle gov't squandering Social Security surplus?

February 5, 2010

How to handle gov't squandering Social Security surplus?

Posted: 03:51 PM ET
FROM CNN's Jack Cafferty:

First it was the banks and car companies... and now it looks like Social Security is the next in line for a taxpayer bailout.

Fortune Magazine's Allan Sloan writes that for the first time in 25 years - Social Security is taking in less than it's spending on benefits.

That's because For decades - the government has been using the surpluses from the nation's largest social program to pay for other things; and now Social Security is running out of money and pretty much consists of IOUs.

Sloan points out that no one has officially announced that Social Security will be cash-negative this year; but it becomes clear pretty quickly when looking at a report from the Congressional Budget Office.

This is outrageous - another bailout looming on the horizon because the government mismanaged these surpluses. And because there's no surplus, there's no interest income - tens of billions of dollars that are nothing more than a bookkeeping entry because the cash, which would earn that interest, is gone. replaced by IOUs.

Things haven't been so bleak for the government trust fund since the early 80s - when it came very close to running out of money. Back then, the government wound up trimming benefits and raising taxes - which led to the significant cash surpluses.

Meanwhile Social Security already provides more than half the income for most retirees; and with millions of people seeing their home values and stock portfolios slashed, this probably means they'll become even more dependent on social security in the future.

Here’s my question to you: What should be done about the government squandering the Social Security surplus?

http://caffertyfile.blogs.cnn.com/2010/ ... us/?hpt=T2

Some really good comments at blog.

SS funds should be used for retirees ONLY. Legal retirees. No more giving SS to those who never worked a day in the US. And no more using the funds for other expenses. SS should be for retirement only. The government should not be allowed to steal money from SS any longer.

"Despite what you may hear about the system going broke, the funds from workers' payroll taxes will cover all retirees' payments until 2016 even if no changes are made to the current program. After that the Social Security Administration can cover full benefits until 2037 by cashing in its Treasury bonds from the Social Security trust fund. And when the bonds run out, income from payroll taxes would be enough to cover about 75% of payments for decades."

First Published: September 17, 2009: 4:49 AM ET
http://money.cnn.com/2009/09/17/retirem ... /index.htm

http://www.alipac.us/modules.php?name=F ... c&p=991795

Elininate the cap on Social Security taxes....

I just signed up for it....figures that it is going broke!!!!!!!!!!!

THE CAP!! I forgot about the cap. Yes, eliminate the cap.