INCREDIBLY MISUNDERSTOOD OR OBLIVIOUS?
There is an incredible lack of understanding of social security by the public, but also by many politicians. This is a another reason to Educate Our Representatives - or we'll have big problems.
NOT SO URGENT - WHO'S SMOKING WHAT?
Other lawmakers said Social Security's financial problems are not that urgent.
"In the last 75 years, in good times and in bad times, Social Security has paid out every nickel owed to every eligible beneficiary at a relatively modest administrative cost," said Sen. Bernie Sanders, who organized the first meeting of the Senate Social Security caucus Thursday.
"We are getting very tired about hearing our Republican and right wing friends telling us about how Social Security is collapsing when the reality is, Social Security today has a surplus of $2.6 trillion," Sanders said. "Social Security can pay out every benefit owed to every eligible American, for the next 27 years."
Social Security has built up a $2.5 trillion surplus since the retirement program was last overhauled in the 1980s. Benefits will be safe until that money runs out. That is projected to happen in 2037 -- unless Congress acts in the meantime. At that point, Social Security would collect enough in payroll taxes to pay out about 78 percent of benefits, according to the Social Security Administration.
THE REALITY
The $2.5 trillion surplus, however, has been borrowed over the years by the federal government and spent on other programs. In return, the Treasury Department has issued bonds to Social Security, guaranteeing repayment with interest.
We have incurred obligations to pay out current retirees for the rest of their lives - and future retirees. Yes, it isn't "seen" right now, but we are obligated to pay over time. To have enough to cover the retirees we need an extra $17.5 trillion dollars - if we don't handle that our children will have a huge additional debt. [$17.5 trillion is more than our GDP and 15 times our current individual income taxes paid right now - in other words, to pay for this we'd have to double our tax rates for 15 years. This will be devastating in the future. Sure, we won't double our taxes, but we will have to add something, as the good fairy is unlikely to show up.
"UNINTELLIGENT ACCUSATIONS" - POLITICS AT ITS WORST
Sen. Chuck Schumer, D-N.Y., accused congressional Republicans of wanting to end Social Security by privatizing it.
"strengthens the retirement safety net by providing workers with the voluntary option of investing a portion of their FICA payroll taxes into personal savings accounts." What is it about the word "voluntary" does Schumer and others fail to understand? Voluntary = choice. It doesn't equal end.
THE SOLUTION
