Matt Macchiarolo

Wrong date I posted, 2015-2037.

"Matt Macchiarolo" <matt@nospamplease.com> wrote in message
news:Q4edncBOb_TnwrneRVn-iw@comcast.com...
> You're talking about theSocial Security surplus loaned in Federal bonds to
> the Federal Government:
>
> * By law, Social Security surpluses must be invested in federal
> securities. In other words, the only thing that the Social Security
> program can do with its surplus money is to loan it to the federal
> government. The federal government is required by law to pay this money
> back to the Social Security program with interest. [63] [64]
>
>
>
> * According to projections, in 2015, the Social Security program will
> begin to spend more money than it collects in taxes. At that point, the
> Social Security program will begin to collect on the money that it has
> loaned to the federal government. [65]
>
>
>
> * According to projections, between 2015 and 2037, the annual shortfalls
> of the Social Security program will be covered by the money that federal
> government will pay back to the Social Security program.
>
>
> from http://www.justfacts.com/socialsecurity.htm
>
> The Social Security program will call in those loans when it starts to
> spend in benefits more than it takes in, and that is estimated to be
> around 2037, if memory serves. Of course, if the government can't pay back
> those loans, that's the real problem.
>
> "SoK66" <Nospam@SoK.net> wrote in message
> news:dg07c501l4d@enews2.newsguy.com...
>> Actually, Matt, he's right. In the run up to LBJs election in '64, Social
>> Security was running large surpluses, which were to that point saved and
>> invested strictly to pay for for future retiree benefits. The interest
>> earned on the surplus funds meant that at the time FICA taxes were
>> miniscule. When adjusted for inflation, benefits paid out at the time
>> were much higher than they are now.
>>
>> Costs of the Vietnam war, (which adjusted for inflation, dwarf what's
>> being paid out for the current conflict) and Johnson's "Great Society"
>> social programs were enormous. In order to avoid even greater tax
>> increases than they had already enacted, the Democrats (who had a total
>> lock on both houses of Congress, much greater than the Republicans have
>> now) passed legislation that allowed the Feds to use Social Security
>> surpluses to pay general expenses. This was done in in exchange for
>> "IOUs". In other words, the Feds were to pay back the Social Security
>> system in time to pay out benefit commitments. They've never paid it
>> back.
>>
>> As a result, to keep the system afloat there have been a HUGE increases
>> in FICA / Medicare taxation over the ensuing 40 years. They now equal
>> about 15% of every taxpayers income. Forget that charade about "your
>> employer pays 1/2". Your employer just counts it as an expense to employ
>> you, it's figured as part of your income on your employers books.
>> (Self - employed folks like me get the joy of paying it all.)
>>
>> As for taxation of benefits, in the late 80's the Democrats did pass
>> legislation to tax the Social Security benefits of so-called "wealthy
>> retireees", which turns out to be anyone retired who's not living in a
>> carboard box and eating dry dog food. He's also correct that Democrats
>> changed the law to permit paying out disability, Social Security, etc. to
>> illegal immigrants. Not sure it was Carter that signed off on it.
>>
>> IMHO, Republicans have been no better than Democrats on this issue,
>> they've more than happy to raid Social Security, and any time you hear a
>> politician talk about the "Social Security Trust Fund", or my favorite,
>> the "Lock Box" they're just plain lying. The system is flat broke, there
>> is NO trust fund, all there is is a bunch of debt that has to be paid by
>> someone, probably our kids.
>>
>> In actual fact, the "pay as you go" scheme used by the Government for
>> Social Security is known as a "Ponzi Scheme" and is illegal for everyone
>> else. If you did such a thing to run a business you'd end up in the
>> slammer. I figure that's where the politicians that have screwed this
>> thing belong, too.
>>
>> For you youngsters out there, Social Security is THE WORST "investment"
>> you'll ever make, and you have no choice in the matter. Do yourself a
>> favor, invest everything you can in IRAs, 401(k)s, etc. It will be the
>> only thing of substance you'll have when you retire. If you retire at 65
>> right now, no matter how much you've been taxed over the years, the most
>> you collect is about $1,600 a month. Had the same money been invested,
>> your returns would dwarf that, even adjusting for down markets, etc. Your
>> government is LYING TO YOU when it says Social Security is a "good deal".
>> Don't get played, save your money!
>>
>>
>> "Matt Macchiarolo" <matt@nospamplease.com> wrote in message
>> news:7cCdnb-X-KefDb7eRVn-qA@comcast.com...
>>> *You* are badly misinformed.
>>>
>>> http://www.ssa.gov/history/InternetMyths.html
>>>
>>> "----" <LeadWinger> wrote in message
>>> news:vaarh1l85aev5bevvpcijenivdi0vh1872@4ax.com...
>>>
>>> The
>>>> reason we are in trouble now is that Lyndon Johnson took the S.S.
>>>> trust fund and put it into the general fund so that the liberals could
>>>> get their grubby hands on it. Now the money has been spent, and the
>>>> program has become a pay-as-you-go system. To add insult to injury,
>>>> not only was the trust fund stolen, but we now have to pay tax on the
>>>> benefits. We can thank Al Gore for that one when he was Senate
>>>> President. Oh, and let's not forget that Jimmy Carter elected to give
>>>> S.S. benefits to immigrants who never paid anything into the system.
>>>> Grumble, grumble.
>>>>
>>>> ----
>>>>
>>>> On Tue, 06 Sep 2005 13:34:19 GMT, jeff
>>>> <jalowe44INVALID@hotmail.com.INVALID> wrote:
>>>>
>>>>>No Bill. You are retired, so 15c of every dollar I make goes to you or
>>>>>some other welfare queen sucking off the public teat known as Social
>>>>>Security.
>>>>>
>>>>>L.W.(ßill) ------ III wrote:
>>>>>> Except I'm retired, so know every dollar flipping hamburger you
>>>>>> make will go towards some screaming greenie bleeding heart liberal
>>>>>> that's being subsidized by you.
>>>>
>>>
>>>
>>
>>
>
>

Ruel Smith

> * According to projections, in 2015, the Social Security program will
> begin to spend more money than it collects in taxes. At that point, the
> Social Security program will begin to collect on the money that it has
> loaned to the federal government. [65]

How old is this information? I just wonder if it took into consideration the
recent baby boom?

> * According to projections, between 2015 and 2037, the annual shortfalls
> of the Social Security program will be covered by the money that federal
> government will pay back to the Social Security program.

Which means we lose there too. We're paying for it either way.

Ruel Smith

> * According to projections, in 2015, the Social Security program will
> begin to spend more money than it collects in taxes. At that point, the
> Social Security program will begin to collect on the money that it has
> loaned to the federal government. [65]

How old is this information? I just wonder if it took into consideration the
recent baby boom?

> * According to projections, between 2015 and 2037, the annual shortfalls
> of the Social Security program will be covered by the money that federal
> government will pay back to the Social Security program.

Which means we lose there too. We're paying for it either way.

Ruel Smith

> * According to projections, in 2015, the Social Security program will
> begin to spend more money than it collects in taxes. At that point, the
> Social Security program will begin to collect on the money that it has
> loaned to the federal government. [65]

How old is this information? I just wonder if it took into consideration the
recent baby boom?

> * According to projections, between 2015 and 2037, the annual shortfalls
> of the Social Security program will be covered by the money that federal
> government will pay back to the Social Security program.

Which means we lose there too. We're paying for it either way.

Ruel Smith

> * According to projections, in 2015, the Social Security program will
> begin to spend more money than it collects in taxes. At that point, the
> Social Security program will begin to collect on the money that it has
> loaned to the federal government. [65]

How old is this information? I just wonder if it took into consideration the
recent baby boom?

> * According to projections, between 2015 and 2037, the annual shortfalls
> of the Social Security program will be covered by the money that federal
> government will pay back to the Social Security program.

Which means we lose there too. We're paying for it either way.