The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Its official, Social Security is Broke

Posted by iusbvision on March 26, 2010

NY Slimes:

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

Stephen C. Goss, chief actuary of the Social Security Administration, said that while the Congressional projection would probably be borne out, the change would have no effect on benefits in 2010 and retirees would keep receiving their checks as usual.

The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax.

Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances.

“When the level of the trust fund gets to zero, you have to cut benefits,” Alan Greenspan, architect of the plan to rescue the Social Security program the last time it got into trouble, in the early 1980s, said on Wednesday.

One Response to “Its official, Social Security is Broke”

  1. Paul Geer said

    I know I’ve said this before, but I would gladly exit the SS system if they would pay me back every penny I put into it. It’s not much, but enough for my own investing.

    Social Security was a broken idea to start with, an enormous ponsy scheme not much different from what Madof did, would have to fail in any economy. As an economy grows, there would be more people retiring each year from growth leaving that burden on the next generation. That sounds reasonable, but add taxes, downward trends in the economy, constantly adjusting the Federal rate, work place lay offs due to technologies (this covers a huge portion), and government programs of any nature on any level, State and Federal (really US) puts a monetary burden on the people, already caries the burden of the previews generation. And add inflation, from government price controls and a devalued dollar (mostly from the cost of government programs) certainly does not subtract from the tax burden we face now but adds to it.

    The scheme is of course, the government takes out of SS in to addition your SS check for everything else under sun. On top of that now Obama wants to add more taxes including CO and health care. All this for illegals to boot!

    When I say ‘I want my money back’ from SS, I’m also saying I want control of my earnings, I want my country back.

    So I say shut down SS and give me back what I paid into it. It will not shut down the country but it might cut into some congressional perks… Nancy Pelosi may have to give up two of her fleet of government paid jets.

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