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View Diary: Should Americans Forgive the $2.5 Trillion Borrowed From Social Security? (181 comments)

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  •  We can render this whole issue moot... (1+ / 0-)
    Recommended by:
    Miata Blue

    To me, the simple solution to SS is to make it self-funded so it doesn't ever have to touch that trust fund. Right now, the trustees report projects (using the intermediate scenario) that they won't have to dip into the trust fund until 2021 - 8 years.

    If we allow the cap on contributions (currently somewhere around $110,000 of income) to rise faster than it does, we can keep pushing the 'cross-over' date into the future. Bernie Sanders has a proposal to exempt income between $110,000 and 250,000 that would lighten the load on the people in that 'upper-upper-middle class' segment.

    And every year we push the 'cross-over' date into the future is a year in which the entire SS trust fund doesn't impact our country's fiscal situation at all, except for the interest paid, which isn't substantial (maybe $100 billion).

    Yes, I know that's OUR money in the Trust Fund, but the hard truth is that it's spent, wisely or not.

    So if we can just tweak the revenue side of the equation, we can keep SS self-sustaining for a whole lot longer than 2021.

    And as long as SS isn't draining its trust fund, it truly isn't a problem.

    Cheers.

    Against stupidity the gods themselves contend in vain. Friedrich Schiller

    by databob on Mon Dec 03, 2012 at 08:06:07 AM PST

    •  But the SS Trust Fund was *meant* to be drained! (3+ / 0-)
      Recommended by:
      JeffW, blue muon, leevank
      And as long as SS isn't draining its trust fund, it truly isn't a problem.
      It was built up to much higher than historic levels starting in the early '80s to have extra money available when the Baby Boomers retired.  Now we are retiring, and the Trust Fund should be drawn down slowly to pay us.  

      Renewable energy brings national global security.     

      by Calamity Jean on Mon Dec 03, 2012 at 09:08:18 AM PST

      [ Parent ]

      •  Boomers are dead by 2062 (0+ / 0-)

        Once SS gets past 2062 , assets grow. Quickly.

        FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

        by Roger Fox on Tue Dec 04, 2012 at 07:43:10 AM PST

        [ Parent ]

        •  Yep, if climate change doesn't wreck everything. (1+ / 0-)
          Recommended by:
          JeffW
          Boomers are dead by 2062.
          Once SS gets past 2062 , assets grow. Quickly.
          The state of the trust fund will be irrelevant if the nation can't raise enough food to feed everyone.  Assuming our population isn't dropping dead from heat stroke, starvation, and dehydration, the SS tax rates will have to be cut to prevent the SS trust fund from ballooning to ridiculous size.  

          Renewable energy brings national global security.     

          by Calamity Jean on Thu Dec 06, 2012 at 10:27:37 AM PST

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    •  Tweak the revenue side, by creating jobs? (0+ / 0-)

      maybe raising the min wage?

      When the Trustees tells us, in the low cost scenario, that the Trust Fund will not be depleted thru 2090..... those are the 2 biggies.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Tue Dec 04, 2012 at 07:45:57 AM PST

      [ Parent ]

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