CBO States Social Security is Solvent Until 2038

August 7, 2011
By

Social Security was put on the chopping block during the debt ceiling debacle — which seems to be ongoing much to everyone’s dismay. The drama perpetrated by Congress is only deflecting from what’s actually fact based and what is not. Social Security benefits are entirely self-financing, paid for with payroll taxes which are collected from workers and employers throughout their working lives.

 

Attacked by a chorus of Republicans that used the deficit as their motive, they insisted on major cuts, but it’s evident they would like to do away with the trust program altogether. Certainly Social Security has problems and changes are necessary, however, it is not a problem caused by the people paying into it. In fact, we borrow money from Social Security

 

The funds paid into Social Security are placed in a trust fund which basically gets looted by the government to pay other deficits. 

 

 

In 2001 and 2003, Washington cut taxes for the wealthiest Americans and later expanded Medicare without paying for it, then laid the blame on Social Security for our fiscal problems. This is akin to blaming you for not saving enough in your checking account because the bank screwed up and lost all depositors’ money.

USA Today reports:

 


When more taxes are collected than are needed to pay benefits, funds are converted to Treasury bonds — backed with the full faith and credit of the U.S. government — and are held in reserve for when revenue collected is not enough to pay the benefits due. We have just as much obligation to pay back those bonds with interest as we do to any other bondholders. The trust fund is the backbone of an important compact: that a lifetime of work will ensure dignity in retirement.

 

 

It’s questionable as to why Social Security was taken hostage in these negotiations at all — perhaps if we didn’t allow the money garnered by the people to be utilized at all, that would stop the madness — collecting revenue instead of shooting the program we borrow from would be a far greater idea, but right wing politicians are protecting the wealthy at all costs.

Rep. Keith Ellison weighed in on this issue recently:

Social Security actually is not contributing to the deficit. Social Security loans us money. So at the end of the day, all this discussion about how we’re going to cut Social Security is very distressing to me because Social Security isn’t the problem…This is inequitable and regressive…We’re asking the poorest Americans to sacrifice. When are the wealthiest Americans going to step up and do the patriotic thing, which is to contribute to deal with this budget deficit.

Think Progress reports:

The Social Security Trust Fund currently holds approximately $2.6 trillion and can pay full benefits through 2037 and close to full benefits for decades after. Very minor tweaks to the system would strengthen Social Security for future generations and bolster the program in important ways.

 

 

CBO released numbers affirming the Social Security trust fund’s solvency through 2038.  Once more, why is a solvent program on the chopping block and tax cuts for the wealthiest which has been proven to be a miserable failure, protected? It’s a power grab in its cruelest form.

 

Dismantling Social Security would be shooting ourselves in the foot.

 

Many thanks to Think Progress
Image courtesy of: Nation of Change

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  • Neocon

    Oh and sorry for run on sentences. I’m on an iPad and it’s easier to just type and not worry about grammar. I’ll try to be better about it next time.

  • Neocon

    1st you are all idiots the 2.6trillion supposedly in reserves are IOUs because we’ve borrowed from the system since the 60s. That will have to be payed back later through more debt and shiva even if everyone had a job it wouldn’t be solvent forever when it began in 1935 there were 16 workers for every retiree. today we have an aging population and by 2020 there will be only 1 worker for every retiree. do the math assuming that rate continues due to better and better healthcare there will eventually be 2 or 3 retirees for every worker it will then run massive unsustainable deficits even with higher taxes and removing the cap that by the way the great progressive FDR put in place traitor to his class give me break that’s the most regressive tax in american history and universal healthcare isn’t all that great it creates massive deficits even in nations with 90%tax rates on there wealthiest citizens there’s also huge waiting lists for every imaginable procedure if our healthcare system were so bad why do hundreds of thousands of people from around the globe including Europe and Canada come to the US every year for healthcare? The tax code is also heavily weighted on the rich already the top 5% account for 80% of government revenues while the bottom 50% pay nothing yet these are the individuals who benefit the most from government spending.

    • http://FreakOutNation.com Anomaly100

      @Neocon, If you are replying to Shiva, you should use the ‘reply’ feature, otherwise, it’s highly doubtful he’ll get it. Just a thought.

      • Neocon

        @Anomaly100, Shiva was only part of it, it was more of a broad response to what everyone here was saying I decided I’d be the only conservative voice here and that I should correct alot of the miss information

        • http://FreakOutNation.com Anomaly100

          @Neocon, You are not the only Conservative voice here; there are several. I welcome all viewpoints, opposing or not.

      • Neocon

        @Anomaly100, Maybe not on the site as a whole but on this particular page all I see are liberal points of view. You are clearly liberal as well and theirs nothing wrong with that. I was just researching social security and noticed that the article and all of the comments had a leftist bent and decided I’d challenge it with my conservative point of view.

        • http://FreakOutNation.com Anomaly100

          @Neocon, Well yeah, this is a Progressive site, so by far there are more Dems here. There’s no doubt about it. But, I’m only saying that there are some Conservative readers here [Hank, I'm looking at you]. There are a few and I enjoy reading other points of view, in fact, I welcome it. I don’t want this to be a forum for just patting each other on the back. But, I’ll probably disagree with almost anything you say if it has a Republican bent to it. ;-)

        • Neocon

          @Neocon, That actually quite refreshing usually liberal blogs attack anyone who comes in and tries to argue with them lol however what did you my critique.

          • http://FreakOutNation.com Anomaly100

            @Neocon, I realize that a lot of sites do not appreciate opposing viewpoints, but I find those sites boring. Besides, I enjoy reading about Republicans. It’s safe to say that I do not understand them.

  • Shiva

    And if far more people had jobs, it would be solvent until the day the sun grows and swallows us, several billion years from now

    • http://FreakOutNation.com Anomaly100

      @Shiva, And where are those jobs exactly? We need to ask Wall Street to pitch in after we bailed them out.

      • Shiva

        @Anomaly100, We gave up a lot of revenue for those jobs. I think the GOP has them hiding in a warehouse. I wonder why they keep saying that taxes are job killing yet when the taxes are dropped no jobs seem to appear

        • http://FreakOutNation.com Anomaly100

          @Shiva, History proves otherwise and actually without labor, the wealthy will not increase their wealth. It’s a give and take situation, but now only one side is supposed to give.

  • mattcarmody

    Social Security “reform” was put on the table by Obama, not by congress, although they will be more than happy to destroy it.

    Just like your piece on the AAA rating and health care you got this wrong too. The teabaggers didn’t force Obama to abandon a progressive health care law, he never intended to anything other than what he did – help insurance companies by forcing people to buy insurance.

    Maybe you need to take a reading comprehension course or something to hone your critical reading skills.

    • Shiva

      @mattcarmody, Actually the blue dog Dems stopped Obama from letting us have the same good healthcare the rest of the civilized world has.

      The AAA rating was dropped not becuase of the debt, but it was called our clearly by S&P that it was the republicans failure to put revenues in the deal and the fact they refused to compromise until the last minute. And I think you know whop forced that. Yep, tea bags. The very people who wanted us in default

  • rocket scientist

    Someone making $200 million is getting $100 thousand per hour. As msbpodcast points out you “have to be able to do the math”. A 40 hour week for 50 weeks ( 2 for vacation ) is 2000 hours per year. $100,000/hr is a lot more than $7.50/hr Can anyone really defend someone getting $100 thousand per hour for each and every hour of a standard work week.

  • http://www.msbpodcast.com msbpodcast

    Not only is the republican party revealing an agenda for stealing our future by under-funding their obligations, they are trying to go after our present by putting on the chopping block things that don’t belong to them.

    The 400 people at the top are worth as much as the, 180,000,000 at the bottom.

    Let me state that again:

    US economy/2 / 400 = rich
    equals
    US economy/2 / 180,000,000 = poor

    Why are the 180,000,000 letting the minions of the 400 get away with it?

    At some point, even the poorest yokels in the country-side, in the burbs or in the ghettos have to be able to do the math.

    400 is NOT “of the people, for the people, by the people.”

    • http://FreakOutNation.com Anomaly100

      @msbpodcast, Keep saying that wherever you can — perhaps someone will hear it. I may use your comment in an upcoming blog post if you don’t mind. Thanks for a comment well said.

      • http://www.msbpodcast.com msbpodcast

        @Anomaly100,

        “Feel fre”ak…

        I’m going to a MoveOn.org rally on Tuesday and I definitely intend to wave a placard saying:

        “400 ultra-rich white dudes is NOT government ‘of the people, for the people, by the people.’ ”

        • http://FreakOutNation.com Anomaly100

          @msbpodcast, Do have a picture taken. I wanna see! I wanna see!

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