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View Diary: The “Chained CPI” Cut – “If You Can’t Dazzle Them With Brilliance . . .” (262 comments)

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  •  I would disagree. (1+ / 0-)
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    Argyrios

    While there is little to no reason to include the financial stability of SS in the "fiscal cliff" negotiations the simple fact of the matter is that SS is projected to only pay out 75% of the promised benefits for a large portion of our society.  I can understand why conservatives would want to largely make up the shortfall with benefit cuts and I can understand why progressives would want to make up the shortfall with tax increases.

    I also understand that in a representative republic that we will likely see a compromise between these two positions and that the SS system will likely see increased funding through increased taxes and will also see some benefit cuts.  If this is the situation, a change to how CPI is calculated is to be expected regardless of when it happens.

    While I would expect you to disagree, the way I interpret your comment is that any benefit cut to SS should only happen to the younger generations.  This is an immoral position, IMHO.

    We cannot solve our problems with the same thinking we used when we created them. Albert Einstein

    by theotherside on Thu Dec 20, 2012 at 02:00:38 PM PST

    [ Parent ]

    •  Granted to your larger point. (11+ / 0-)

      I'm 100% in favor of removing the cap on earnings completely.  Problem solved, forever.

      That discussion, though, should never be held in context with discussions about the national debt.

      •  My understanding of the situation is that you (0+ / 0-)

        are correct in your position.  I would counter that the politics of the situation basically eliminates the likelihood of your position being enacted.  

        And as far as the effect of the debt goes, I don't think you are exactly right.  

        What we did was that we ran surpluses on the SS payroll tax.  We spent the excess and wrote IOU's for the SS Trust Fund.  So when we replace the IOU's it eventually does impact the deficit because we will either need to increase taxes or we will increase the deficit.  We aren't at that point yet but the fact is that the past spending of SS excess revenues does actually impact the future deficit spending that we will undergo.

        We cannot solve our problems with the same thinking we used when we created them. Albert Einstein

        by theotherside on Thu Dec 20, 2012 at 03:36:18 PM PST

        [ Parent ]

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