Social Security heading for insolvency even faster

Treasury Secretary Timothy Geithner speaks at a news conference on the Social Security and Medicare Trustees Reports, Monday, April 23, 2012, at the Treasury Department in Washington. Trustees update forecasts for the government's two largest benefit programs, which are laboring under the weight of retiring baby boomers, revenue shortages and politicians' reluctance to take painful action to fix them. (AP Photo/Susan Walsh)

Treasury Secretary Timothy Geithner speaks at a news conference on the Social Security and Medicare Trustees Reports, Monday, April 23, 2012, at the Treasury Department in Washington. Trustees update forecasts for the government's two largest benefit programs, which are laboring under the weight of retiring baby boomers, revenue shortages and politicians' reluctance to take painful action to fix them. (AP Photo/Susan Walsh)

WASHINGTON — Social Security is rushing even faster toward insolvency, driven by retiring baby boomers, a weak economy and politicians' reluctance to take painful action to fix the huge retirement and disability program.

The trust funds that support Social Security will run dry in 2033 — three years earlier than previously projected — the government said Monday.

There was no change in the year that Medicare's hospital insurance fund is projected to run out of money. It's still 2024. The program's trustees, however, said the pace of Medicare spending continues to accelerate. Congress enacted a 2 percent cut for Medicare last year, and that is the main reason the trust fund exhaustion date did not advance.

The trustees who oversee both programs say high energy prices are suppressing workers' wages, a trend they see continuing. They also expect people to work fewer hours than previously projected, even after the economy recovers. Both trends would lead to lower payroll tax receipts, which support both programs.

Unless Congress acts — and forcefully — payments to millions of Americans could be cut.

If the Social Security and Medicare funds ever become exhausted, the nation's two biggest benefit programs would collect only enough money in payroll taxes to pay partial benefits. Social Security could cover about 75 percent of benefits, the trustees said in their annual report. Medicare's giant hospital fund could pay 87 percent of costs.

"Lawmakers should not delay addressing the long-run financial challenges facing Social Security and Medicare," the trustees wrote. "If they take action sooner rather than later, more options and more time will be available to phase in changes so that the public has adequate time to prepare."

The trustees project that Social Security benefits will increase next year, though the increase could be small. They project a cost-of-living-adjustment, or COLA, of 1.8 percent for 2013; the actual amount won't be known until October.

Beneficiaries got a 3.6 percent increase this year, the first after two years without one.

More than 56 million retirees, disabled workers, spouses and children receive Social Security. The average retirement benefit is $1,232 a month; the average monthly benefit for disabled workers is $1,111.

About 50 million people are covered by Medicare, the medical insurance program for older Americans.

America's aging population — increased by millions of retiring baby boomers — is straining both Social Security and Medicare. Potential options to reduce Social Security costs include raising the full retirement age, which already is being gradually increased to 67, reducing annual benefit increases and limiting benefits for wealthier Americans.

Policymakers could also increase the amount of wages that are subject to Social Security taxes. Social Security is financed by a 6.2 percent tax on the first $110,100 in workers' wages. It is paid by both employers and workers. Congress temporarily reduced the tax on workers to 4.2 percent for 2011 and 2012, though the program's finances are being made whole through increased government borrowing.

The Medicare tax rate is 1.45 percent on all wages, paid by both employees and workers.

Social Security is split into two funds — one for retirement and survivor benefits and one for disability. The retirement fund is projected to run out of money in 2035 while the disability fund is projected to run dry in 2016. Combined, the two funds will last until 2033.

In the absence of a long-term solution, the trustees who oversee Social Security are urging Congress to shore up the disability system by reallocating money from the retirement program, just as lawmakers did in 1994.

Social Security's trust funds contain a total of $2.7 trillion. The money is invested in U.S. Treasury bonds. The government has used the cash to pay for other programs.

The trust funds have been paying out more in benefits than they have collected in payroll taxes since 2010. The funds, however, will continue to grow until 2021 because they will earn interest on the Treasury bonds, the trustees said.

Many advocates for seniors worry that Washington is too focused on benefit cuts as a way to shore up Social Security. They argue that the program's finances are not as dire as some policymakers contend.

"After 77 years and 13 recessions, Social Security continues to prove itself time and again as the most effective public program in our nation's history, keeping its promise to our seniors, disabled workers, widows and children," said Rep. Xavier Becerra, the top Democrat on the House Social Security Subcommittee.

Medicare is trickier to address because it has to contend with health care inflation, not just an aging population. Options include raising the eligibility age, cutting payments to service providers, shifting more costs to beneficiaries or even privatizing the program.

On Monday, Treasury Secretary Timothy Geithner called Social Security and Medicare the "twin pillars of retirement security in this country," and he declared, "It is critical that reforms are slowly phased in over time so current beneficiaries are not affected and future beneficiaries do not experience precipitous changes."

President Barack Obama's health care law is supposed to trim Medicare expenses by $500 billion, extending the life of the program. But some independent experts doubt the full savings will materialize, and even the administration concedes more cuts are needed. If Republicans succeed in repealing the law, they will have to come up with similar cuts of their own.

"The Affordable Care Act began this process with the most significant entitlement reform in decades," Geithner said, referring to the new health law.

Alternative cost projections prepared by the trustees' technical experts suggest the Medicare cuts in the health care law would be unsustainable, driving payment rates so low that 15 percent of hospitals, nursing homes and home health providers would be in the red by 2019.

The trustees conceded that their own Medicare projections could be too rosy. Based on current law, they assume cuts in payments to doctors that Congress routinely waives will actually take place. They also assume the health care law will squeeze the full amount of its cuts from the program.

"Medicare's actual future costs are highly uncertain and are likely to exceed those shown ...in this report," the trustees said.

Republicans, including presidential candidate Mitt Romney, are proposing to overhaul Medicare by converting it into a system that mainly relies on private health insurance plans to cover future retirees. Beneficiaries would get a fixed payment from the government, with low-income seniors in poor health receiving more.

Obama says he wants to preserve the existing program and its federally guaranteed benefits. But in negotiations with congressional Republicans last year, he went further than most Democrats by signaling he was willing to raise the eligibility age by two years to 67. He's also willing to limit future increases in Medicare spending, a policy that prompts serious misgivings from groups such as AARP.

"Today's report reminds us that Medicare must be reformed and strengthened or it will soon collapse," said Lanhee Chen, Romney's policy director.

The trustees who oversee the programs are Geithner, Social Security Commissioner Michael J. Astrue, Labor Secretary Hilda Solis and Health and Human Services Secretary Kathleen Sebelius. There are also two public trustees, Charles Blahous and Robert Reischauer.

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Comments » 52

John_Galt writes:

Maybe if we stopped blowing all our tax money on these WARS, we might have some left over to pay our debts to our seniors. We should start with ending all foreign aid too. What a waste!

greathornedlizard writes:

Only one thing to do-kill the rich and confiscate their ill-gotten gains, since they insist on looting the wealth creators-that being the people who actually do the work!

wonderful (Inactive) writes:

With folks like this in charge of the 'lock-box?', can "Soylent Green" be far behind?

When present obama puts PETA in charge by executive order then stand by!

savethewhalz writes:

The headline is amusing. Insolvency is too kind. There is no fund, only a box of IOU's. As long as our government can borrow money everyone will get their check.

Coastal writes:

private sector hiring through June 2011 was 10 times slower following the passage of President Obama's healthcare bill compared to the prior 16 months. Economists at Stanford University and the University of Chicago estimated in the fall of 2011 that policy uncertainty has cost more than 2 million jobs since early 2010

Sick writes:

S.S. Was intact before Obama. Now look at it.

Unreal you voted for this. You voted to have your parents thrown out on the streets.

LOL

Here4Now writes:

in response to wonderful:

With folks like this in charge of the 'lock-box?', can "Soylent Green" be far behind?

When present obama puts PETA in charge by executive order then stand by!

Yes yes! Soylent Green is the answer my friend.

Creep writes:

Trustees want to act now to give the public time to prepare. Ugh i've been preparing for 50 yrs. now you want to give me preperation H

John_Galt writes:

in response to savethewhalz:

The headline is amusing. Insolvency is too kind. There is no fund, only a box of IOU's. As long as our government can borrow money everyone will get their check.

END THE FED!!!

volochine writes:

Maybe the free-market republicans could agree with democrats that companies advertising on TELEVISION to get full disabilty benefits, even though they have been turned-down by local government officials. I get sick when I hear television advertising for lawyers who can get you full disability.

Turned down by the government? We can get you disability payments. Call Us!

Trustworthy, loyal, helpful? I doubt it.

fair2all writes:

It will never get fixed until congress & senate have to live off the same rules. How many people after 4-6 yr service continue to receive their pay and 100% benefits? ONLY THEM! Sure, force the rest to have to wait for benefits longer by extending the age requirements ...while the legislature receive immediate benefits after either losing the next election!
Not to mention that the previous groups are so financially tied into World incentives/stock prices that there is very little chance to revive US jobs until they revert to penalties for "outsourcing" to other countries instead of the incentives the companies receive.
Illegal immigrants take a very large portion of Medicare and it continues to grow.
Add all of this up &???? It would all be corrected if our elected officials had to live by the same rules!

Jack1955 writes:

Social Security funds have been trifled with many times in the past, and the original concept of maintaining these funds completely free from manipulation by Congress was not followed. That has handicapped Social Security from growing like an endowment, and that is a shame, since the people who reach retirement age are the ones who can least afford budget cuts.

desperado writes:

HELLOOOO !!!! DOESN'T ANYBODY LISTEN ?....WELL LISTEN TO THIS....."STOP GIVING SOCIAL SECURITY BENIFITS TO ILLEGALS IN THIS COUNTRY" PROBLEMS SOLVED ! MAN..YOU'D HAVE TO BE BRAIN DEAD NOT TO UNDERSTAND THIS !!!!! JUST STOP AND DO IT NOW !!!

desperado writes:

States usually bear the brunt of the burden.
Florida state treasurer says his state loses between $1.3 billion and $2.5 billion each year on illegal immigrants. In addition to the fiscal costs of incarcerating and educating illegal immigrants and their families, Florida also faces a variety of other indirect costs. Florida has higher car insurance rates because illegal immigrants who come here often steal cars that they use to move further into the country. Undocumented workers are also more likely to perpetrate hit-and-run accidents, he says, because they are afraid of being deported if they are caught. Not only does this add to car insurance rates, but it also stretches police resources .

"Unfortunately we are one of the gateways for illegal immigration, and that puts a bigger strain on our economy than other states," he says.

If this was stopped..and the money from this was put into Social Security from each state ..then we wouldn't have a problem !! We need someone who will do something about illegals and get them out ! They are like an "Open Wound" in this country that doesn't heal ! Social Security is bleeding to death because of this and NOT because of " Baby Boomers" retiring !

Beachglow writes:

in response to John_Galt:

Maybe if we stopped blowing all our tax money on these WARS, we might have some left over to pay our debts to our seniors. We should start with ending all foreign aid too. What a waste!

If someone took the initiative in Washington and stopped throwing money at other countries to try to gain their so-called loyalty, we'd be fine. I agree it's all a waste, i.e., giving Pakistan 2 million a year as Hilliary Clinton did just a year ago before it was stopped after years and years when they found Bin Laden there.

This country wastes more money than anyone or anything I know of. It's pathetic. That's why we'll never not have money for Social Security.
There is so much waste that can be stopped.

So I'm not even worried about it. For some reason we keep hearing this over and over, but if you look at what the waste is, it could be funded eight times over. So don't pay any attention to these types of articles. They're nonsense.

desperado writes:

(This comment was removed by the site staff.)

Ruger writes:

in response to GOPWhistleblower:

(This comment was removed by the site staff.)

Maybe Obama should use that taxpayer slush fund to help balance out SS, Right?

http://www.nypost.com/p/news/opinion/...

Obama’s Committee for the Re-Election of the President — a political slush fund at the Health and Human Services Department.
Only this isn’t some little fund from shadowy private sources; this is taxpayer money, redirected to help Obama win another term. A massive amount of it, too — $8.3 billion. Yes, that’s billion, with a B.

gl1800 writes:

The SS insolvency date has been cut back 9 years since Obama took office. The insolvency date was 2042 when Bush was in office. Just food for thought.

Beachglow writes:

I guess this means that the Senate, Congress and all those people will lose their retirement, too?

If we just tap into their pension plans to keep SS solvent, we'll be fine.

milo writes:

GET EVERYONE OFF THE DOLE THAT DOESN'T BELONG THERE. DO A FINE TOOTH AUDIT OF MEDICARE BILLINGS AND PRACTICES.
STOP SENDING MONEY TO HALLIBURTON AND EVERYONE ELSE WHO PROFITS FROM RIDICULOUS WARS IN IRAQ AND AFGHANISTAN. THANKS TO TRICKY DICK CHENEY JR. AND HIS MORON PUPPET DUBYA.

roadhouse writes:

in response to desperado:

(This comment was removed by the site staff.)

Those illegal mexicans you can't stand were paid using fake SSN's. The FICA they paid in they will never collect. So it goes to support the greedy geezers. When you get your social security check, make sure you thank an illegal mexican. Because without them, not only does your lawn not get cut, but your SS benefits would have.

roadhouse writes:

in response to Beachglow:

If someone took the initiative in Washington and stopped throwing money at other countries to try to gain their so-called loyalty, we'd be fine. I agree it's all a waste, i.e., giving Pakistan 2 million a year as Hilliary Clinton did just a year ago before it was stopped after years and years when they found Bin Laden there.

This country wastes more money than anyone or anything I know of. It's pathetic. That's why we'll never not have money for Social Security.
There is so much waste that can be stopped.

So I'm not even worried about it. For some reason we keep hearing this over and over, but if you look at what the waste is, it could be funded eight times over. So don't pay any attention to these types of articles. They're nonsense.

Medicare, Medicaid and Social Security are over 40% of the Federal Budget. Not that I disagree with cutting back foreign aid, but it is a drop in the bucket compared to what we spend on entitlements. Stopping it completely would have almost no effect. The problem we have is a spending problem, but it's the big three, Medicare, Medicaid and Social Security spending. Add in defense, and you have the big 4....

Smark writes:

This article is all lies, lies, lies!!! Obama, Biden, Hillary, and Pelosi all say social security is perfectly fine, so it muts be true. Shame on the NDN for running this.

wentfishn writes:

in response to Beachglow:

If someone took the initiative in Washington and stopped throwing money at other countries to try to gain their so-called loyalty, we'd be fine. I agree it's all a waste, i.e., giving Pakistan 2 million a year as Hilliary Clinton did just a year ago before it was stopped after years and years when they found Bin Laden there.

This country wastes more money than anyone or anything I know of. It's pathetic. That's why we'll never not have money for Social Security.
There is so much waste that can be stopped.

So I'm not even worried about it. For some reason we keep hearing this over and over, but if you look at what the waste is, it could be funded eight times over. So don't pay any attention to these types of articles. They're nonsense.

I believe that there is giant under the table kick backs to all the insiders regarding foreign aid. Thinkaboutit?

leneggs writes:

in response to GOPWhistleblower:

(This comment was removed by the site staff.)

Could not have said it better. Get ride of the cap and Social Security will be set for ever!!!!!!!!!!!!!!!

Coastal writes:

Capitol Hill politicians are assessing tax changes that could let the Internal Revenue Service lay claim to a portion of the $18 trillion sitting in 401(k) accounts and other tax breaks used by middle-class workers, including cutting the mortgage tax deduction.

Golden234Girl writes:

Giving tax breaks to companies who keep the jobs in America and eliminating tax breaks for those who create jobs in other countries would cure many of our economic ills.

desperado writes:

in response to roadhouse:

Those illegal mexicans you can't stand were paid using fake SSN's. The FICA they paid in they will never collect. So it goes to support the greedy geezers. When you get your social security check, make sure you thank an illegal mexican. Because without them, not only does your lawn not get cut, but your SS benefits would have.

Without " THEM " this country would be in a better place..We didn't need them before..and we sure as hell don't need em now !! Don't be so dammed lazy..Cut your own lawn !!!

Niki_6 writes:

All of these comments and NO action. So maddening! Where are the eldery that will be affected by this!?! They protested in the streets in the 60s, they need to get thier retired-butts back into the streets of DC and DEMAND the "change". Change to have Congress on the same plans as us, change to have illegals deported or made citizens, change to have anchor baby laws repealed. ARGH!

John_Galt writes:

in response to Beachglow:

If someone took the initiative in Washington and stopped throwing money at other countries to try to gain their so-called loyalty, we'd be fine. I agree it's all a waste, i.e., giving Pakistan 2 million a year as Hilliary Clinton did just a year ago before it was stopped after years and years when they found Bin Laden there.

This country wastes more money than anyone or anything I know of. It's pathetic. That's why we'll never not have money for Social Security.
There is so much waste that can be stopped.

So I'm not even worried about it. For some reason we keep hearing this over and over, but if you look at what the waste is, it could be funded eight times over. So don't pay any attention to these types of articles. They're nonsense.

What makes you think the dollar will last much longer? There's only a certain amount of printing a currency can take. Surely we're at the limit. We've been pushed past the limit in fact - it's only still alive because we're the reserve currency of the world... the petro-dollar - ie. all nations MUST buy oil in US Dollars. But that is changing. Already China and India are starting to purchase oil with gold from the arabs. Once this catches on, we're toast. I hope you've been buying gold, guns, ammo and food.

They may keep sending your social security checks, but they won't be worth the paper they're printed on.

There's a way to stop this. Vote only for people that talk about Austrian Economics. They're the only ones that GET it.

Here's a state rep candidate that you could vote for...

http://www.electRichter.com

Colorado (Inactive) writes:

in response to Sick:

S.S. Was intact before Obama. Now look at it.

Unreal you voted for this. You voted to have your parents thrown out on the streets.

LOL

Keep listening to Fox and sucking your thumb. Oblivion is bliss.

furball writes:

Duh! Vote for Barry the constitutional Professor again (who passes unconstitutional laws)) and is too busy campainging instead of leading and it will dry up sooner! Yippie!

eagle1610 writes:

U.S. the next Greece.

You can not raise taxes to cover this problem. It is a spending problem.

greathornedlizard writes:

in response to desperado:

Without " THEM " this country would be in a better place..We didn't need them before..and we sure as hell don't need em now !! Don't be so dammed lazy..Cut your own lawn !!!

could we keep the Mexicans and get rid of you?

they are only looking for work, it's the ones who hire them that put the cost on the rest of us..

wonderful (Inactive) writes:

in response to furball:

Duh! Vote for Barry the constitutional Professor again (who passes unconstitutional laws)) and is too busy campainging instead of leading and it will dry up sooner! Yippie!

Better yet! Time for a little traveling music. A regular hoedown without the secret? service:

http://www.youtube.com/watch_popup?v=...

Keep it moving!

Hurry November!

amuser writes:

in response to Sick:

S.S. Was intact before Obama. Now look at it.

Unreal you voted for this. You voted to have your parents thrown out on the streets.

LOL

Intact? Do some fact checking before posting. LOL

HAL9000 writes:

in response to greathornedlizard:

could we keep the Mexicans and get rid of you?

they are only looking for work, it's the ones who hire them that put the cost on the rest of us..

"Self-Employment" by your definition, excludes hiring anyone else, thereby eliminating the need for a payroll. Picking up, and delivering commercial pulp literature, hardly requires more than the ability to be a glorified newspaper boy, Mr. Divale! This is something any person of possibly Hispanic origin with a car is capable of doing... which puts them in direct competition with you. If you did have a payroll, you would probably be more inclined to hiring these invaders, much as some of your former Monterey friends in the landscaping business did years ago.

cgbexec writes:

True Story: I met a very nice gentlemen several years ago who left Hungary in the 1980s and made his way to Florida. He did so legally and took steps to become a U.S. citizen. He arrived in Florida in his late 50s. He worked for approximately 10 years, retired and began collecting Social Security. I commend him for coming here legally and becoming a U.S. citizen, but I question why he is able to collect Social Security benefits after being a citizen for such a short period of time when our natural born citizens work on average 40 + years to collect the very same benefits? I also question why illegal aliens are able to collect benefits from a system they never paid into. Why is Social Security insolvent? The reason is because our Government (Both Parties!) has allowed it and every election cycle they promise to save the very program they have caused to fail. Social Security could be fixed with a few pages of legislation any time they wish, but then they would not be able to promise us they will save us every election cycle. Why is it that our Federal Government consistently creates programs, makes its people reliant on the program, breaks the program and then uses the promise to repair the program as a vote bargaining tool every election cycle? It is an absurd notion!

1) Require that Social Security benefits may only be paid to U.S. Citizens.
2) Set a graduated pay scale based on amounts paid in.
3) Raise the FICA cap.
4) Lock the funds in secure investments so that Congress may not appropriate the funds for purposes other than paying benefits.

Done!

DonkeyWhispererakaDuh_novan writes:

in response to cgbexec:

True Story: I met a very nice gentlemen several years ago who left Hungary in the 1980s and made his way to Florida. He did so legally and took steps to become a U.S. citizen. He arrived in Florida in his late 50s. He worked for approximately 10 years, retired and began collecting Social Security. I commend him for coming here legally and becoming a U.S. citizen, but I question why he is able to collect Social Security benefits after being a citizen for such a short period of time when our natural born citizens work on average 40 + years to collect the very same benefits? I also question why illegal aliens are able to collect benefits from a system they never paid into. Why is Social Security insolvent? The reason is because our Government (Both Parties!) has allowed it and every election cycle they promise to save the very program they have caused to fail. Social Security could be fixed with a few pages of legislation any time they wish, but then they would not be able to promise us they will save us every election cycle. Why is it that our Federal Government consistently creates programs, makes its people reliant on the program, breaks the program and then uses the promise to repair the program as a vote bargaining tool every election cycle? It is an absurd notion!

1) Require that Social Security benefits may only be paid to U.S. Citizens.
2) Set a graduated pay scale based on amounts paid in.
3) Raise the FICA cap.
4) Lock the funds in secure investments so that Congress may not appropriate the funds for purposes other than paying benefits.

Done!

Agree

Sane_in_Florida (Inactive) writes:

I feel like I'm getting ripped off. By the time I'm 65, I doubt SS will be in existence yet I still have to pay into it. Additionally, if I need SS at that time, either a series of unfortunate circumstances happened throwing me into poverty or I will have simply failed at being successful. Either way I don't want to pay into SS. It is essentially a transfer of wealth from the younger to older generation, many of whom are quite wealthy already.

tazman9916 writes:

in response to desperado:

HELLOOOO !!!! DOESN'T ANYBODY LISTEN ?....WELL LISTEN TO THIS....."STOP GIVING SOCIAL SECURITY BENIFITS TO ILLEGALS IN THIS COUNTRY" PROBLEMS SOLVED ! MAN..YOU'D HAVE TO BE BRAIN DEAD NOT TO UNDERSTAND THIS !!!!! JUST STOP AND DO IT NOW !!!

Ummmm.... actually, on an overall basis undocumented or illegal aliens are more than likely helping support social security because they often pay in under false SS numbers and never collect. I agree that they should not collect, but I think your premise is wrong.

Now if you want to talk about why all of a sudden we so many more "disabled" people than we had just a few years ago, that might be an interesting topic.

dab writes:

Remember how the Dems complained that Republicans were wrong about Medicare insolvency....the whole big stink they made? Well, either the Dems were lying to the public or they are clueless. The economy, healthcare, foreign policy.....pick ANY topic, and Democrat policy and action are losers. Romney 2012.

profiler writes:

How about a death penalty for all the frauds that have got us into this position? No doubt...dooshbags like the chimpanzee in charge and geitner will NEVER be subject to the garbage laws they want US to be subject to! Armed revolution would go a long ways in cleaning up the system...

roadhouse writes:

in response to desperado:

Without " THEM " this country would be in a better place..We didn't need them before..and we sure as hell don't need em now !! Don't be so dammed lazy..Cut your own lawn !!!

Excuse me, but this country would also be better without racists.

BTW, I have figured out that it not cost effective for me to cut my own lawn....Maybe you could come over and cut it when you are done with your shift at McDonald's....

floridacarpenter writes:

in response to desperado:

HELLOOOO !!!! DOESN'T ANYBODY LISTEN ?....WELL LISTEN TO THIS....."STOP GIVING SOCIAL SECURITY BENIFITS TO ILLEGALS IN THIS COUNTRY" PROBLEMS SOLVED ! MAN..YOU'D HAVE TO BE BRAIN DEAD NOT TO UNDERSTAND THIS !!!!! JUST STOP AND DO IT NOW !!!

This is the big thing that is wrong. I am not a financial genius, but I do know that Illegals are draining the system at an alarming rate. And they are going to be the ruin of the country one of these days.

profiler writes:

A recent talk with a teacher that works in immokalee tells it all. Almost ALL of her students believe they are entitled to everything. There is no talk of earning anything or building anything..only what the governnment can GIVE them. Guess who is going to do that? The tax slaves that are victimed by our fascist gestapo government so they can buy votes from these people.

NOW...nazis in washington again raise the question of raiding peoples retirement accounts. So...you earn it..and these ripoff trash will take it from you under threat of bullets or prison to give it to someone else. I really cannot figure why these lovely human beings aren't being hunted down and shot for their crimes against the masses. They would never have the guts to walk down the street without armed guards because of their crimes against the masses. Let me guess: if they pass a law to take from you and me...it will not include taking from THEIR retirement system. I anxiously open the paper everyday hoping to see these trash assassinated. If that is a crime of hoping for this..then I am guilty. They cannot buy protection from the way I feel. There is nothing bad enough that could happen to them or their vermin offspring they don't deserve.
If you are considering being in any business...if you can operate under the table in cash you will be MUCH better off. Keeping money in banks allows the nazis to track your every dime. If you have employees they make you pay taxes etc on them. If you operate in cash...pay employees in cash...and say to hell with this GD corrupt gestapo country you will be 10x better off. Many people are leavinng this country for freedom. amerika is now a pos nazi police state. HOPEFULLY al quada or iran will shove a nuke up their butts in DC. That WOULD be justice. These are sociopathic criminals...and deserve to die and burn in hell.

chriskh500 writes:

in response to eagle1610:

U.S. the next Greece.

You can not raise taxes to cover this problem. It is a spending problem.

Agreed. And now Greece is screwed for a very long time. Their government grew to huge proportions and the economy was dominated by government beaurucrats.....Government can't solve all our problems....It's needs to get smaller instead of printing more money and borrowing $0.40 on every dollar!

Shark88 writes:

Do some research on Social Security. FDR signs the Social Security Act on 8/14/'35, surrounded by nothing but democrats. Sort of reminds me of Obamacare....all democrats.

The entire Social Security Act should have been ruled unconstitutional, but FDR made sure the Supreme court was stacked in his favor to gain approval from a high court challenge in '37. The court interpreted the Act as simply another tax.

The following are a couple examples why the system is immoral. In short, the gov't is paying out to individuals far more than they pay in to the system.

From Wikipedia:

Implementation:

Payroll taxes were first collected in 1937, also the year in which the first benefits were paid, namely the lump-sum death benefit paid to 53,236 beneficiaries.[citation needed]

The first reported Social Security payment was to Ernest Ackerman, a Cleveland motorman who retired only one day after Social Security began. Five cents were withheld from his pay during that period, and he received a lump-sum payout of seventeen cents from Social Security.

The first monthly payment was issued on January 31, 1940 to Ida May Fuller of Ludlow, Vermont. In 1937, 1938 and 1939 she paid a total of $24.75 into the Social Security System. Her first check was for $22.54. After her second check, Fuller already had received more than she contributed over the three-year period. She lived to be 100 and collected a total of $22,888.92.

Any right-thinking individual see anything wrong with this?

The 'entitlement' simply mushroomed after that.

In 1962, the changing role of the female worker was acknowledged when benefits of covered women could be collected by dependent husbands, widowers, and children. These individuals, however, had to be able to prove their dependency.

Medicare and Medicaid were added in 1965 by the Social Security Act of 1965, part of President Lyndon B. Johnson's "Great Society" program.

The government adopted a unified budget in the Johnson administration in '68. This change resulted in a single measure of the fiscal status of the government, based on the sum of all government activity. The surplus in Social Security trust funds offsets the total debt, making it appear much smaller than it otherwise would. This allowed Congress to increase spending without having to risk the political consequences of raising taxes.

The U.S. sows to the wind & reaps the whirlwind.

NeezDutz writes:

If the Social Security and Medicare funds ever become exhausted.
Interesting, a Govt Run Program going down the toilet.

naplesnative73 writes:

Nevermind the S/S, wait until the "BIG BROTHER" tax your 401k and tax you on your tax refund. Also, wait till the day the federal agents will come to your house to see if your toilet seat is up or down.

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