A common belief … is that the federal government has raided… Social Security … This has virtually no shred of truth to it.
In the USA Today section of the Arizona Republic published 12/29/2018 there was an excellent article on the status and future of Social Security and its connection to the federal government.
First … the politicians who blame social security for any aspect of USA budget deficits, or say the budget deficit would be reduced by reducing Social Security, are either ignorant or gross liars … it’s just that simple. Considering that congress must get explanations as clear as the attached article, gross liar seems most likely. I can’t imagine the justification for an attack on that system.
Second … in a report published June 2018, the Social Security Board of Trustees indicates that Social Security is likely expend more than it collects in 2018, for the first time since 1982, and projects that the Social Security trust fund could be depleted by 2034 due to net cash outflows. This would necessitate a substantial reduction is the amounts paid out to match the funds coming in.
Third … the federal government “borrows” money from Social Security just as it borrows from foreign countries by selling them bonds and other forms of indebtedness. By law, Social Security has always been required to invest the tax income this way. This is mutually beneficial. Social Security gets interest income, $85.1 billion in 2017, and the USA government owes less to foreign countries.
Lastly … for a very long time, congress has known the simple adjustments that would extend social security indefinitely. Republicans would gradually extend the full retirement age, reducing benefits paid out. Democrats would change the payroll tax cap, increasing payroll taxes for those who make higher wages. Neither has happened nor has there been any sort of compromise.
Indeed … red or blue, we’re all in the doo.
The article is attached PDF … Social-Security-Article … click to read it and download if you wish.