Why is there a desire on the right to get rid or privatize Social Security? (user search)
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  Why is there a desire on the right to get rid or privatize Social Security? (search mode)
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Author Topic: Why is there a desire on the right to get rid or privatize Social Security?  (Read 3343 times)
WillK
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Posts: 1,276


« on: December 06, 2010, 09:31:18 AM »

When it comes to social security I really want three things: 1. A lock box so it's not constantly raided by congress  ...  3. An end to tax withholding and payroll tax so that the program is paid for out of general revenues and people actually know how much they're really being taxed. Do that and I won't have a problem with the program.

Arent 1 and 3 incompatible?  Seems to me that a "lock box" only really works if the revenue stream is separate from the general revenue. 
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WillK
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Posts: 1,276


« Reply #1 on: December 06, 2010, 09:32:45 AM »

It's the most fiscally sound part of the entire federal budget. It's the one part that Bush didn't destroy. Its existence is really hurting those anti-government activists, because it shows that the government is capable of doing something right if the right-wingers didn't get to destroy it.

BINGO!  We have a winner!


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WillK
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Posts: 1,276


« Reply #2 on: January 07, 2011, 12:29:36 AM »

...
And it's worse than that:  in order to get to 2037, we have to go through 2016, when the Trust Fund will have start cashing its bonds.  The government does not have cash on hand, and so will have to resort to printing money (which would cause very noticeable inflation), raising taxes, or scaling back the program.  I remind you that 2016 is only about 5 years away.

1) The fact that the government is not awash in cash to pay back the bonds held by the SSA is not a flaw of SS but a problem with Congress and the rest of the budget system.

2) The treasury will likely resort to issuing marketable bonds to raise cash to buy back the bonds held by SSA (a solution not in your list).
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