PDA

View Full Version : Social Security: 2.7 Trillion SURPLUS



DiabloViejo
05-07-2012, 01:52 PM
Social Security Trust Finishes With 2.7 Trillion SURPLUS
Class Warfare Exists (http://www.classwarfareexists.com/social-security-trust-finishes-with-2-7-trillion-surplus/)

http://www.classwarfareexists.com/wp-content/uploads/2012/05/Social-Security-Taxes.jpg

Social Security is doing very well even though you’ll hear this constant whisper that “Social Security won’t be there for you”; well – if that ever comes to pass…it will be the single largest transfer of wealth from the working classes to the richest among us. You can read the Trustees report HERE (http://www.ssa.gov/oact/TRSUM/index.html) . This doesn’t mean that it’s not without problems or that we can rest on our laurels; that would be far from the truth. But it doesn’t mean the sky is falling either Chicken Little. All we need is good governance and elected officials not intent in trying to sabotage the program so they can reward wealthy Wall Street donors by privatizing it and putting that money in the reach of Wall Street vultures.

Reuters explains the evolution of the payroll tax – article HERE (http://blogs.reuters.com/david-cay-johnston/2012/05/04/social-security-is-not-going-broke/) :

Let’s look at how Social Security taxes have grown in the last half century — a little-known tale of tax burdens shifted off the rich and onto workers. From 1961 through 2011, the year covered in the last Social Security report, Social Security taxes exploded from 3.1 percent of Gross Domestic Product to 5.5 percent.

Income taxes went the other way. The personal income tax slipped from 7.8 percent of the economy to 7.3 percent, with most of the decline enjoyed by people in the top 1 percent of incomes. The big drop was in the corporate income tax, which fell from 4 percent of the economy to 1.2 percent. Notice that the corporate income tax fell by 2.8 percentage points, an amount almost entirely offset by a 2.4 percentage point increase in Social Security taxes.

The effect has been to ease the taxes of the wealthy, while burdening the vast majority of workers. Considering how highly ownership of stocks is concentrated, the benefit of those lower corporate taxes went overwhelmingly to the top 1 percent and, especially, the top 1 percent of the top 1 percent. Considering that the Social Security tax is capped, most of the burden of the increased payroll tax went to the bottom 90 percent.

There is a reason that so many types of taxes exist…and so many types of deductions as well. It used to be to stimulate various forms of growth to benefit the economy…now those tax credits and varying taxes on types of incomes are essentially corruption. As we have explained HERE (http://www.classwarfareexists.com/balancing-the-budget-is-easy-we-did/) - it’s time to eliminate the payroll tax completely and just treat all incomes equally..taxing according to income.

sack316
05-07-2012, 02:12 PM
The take on that particular figure from the report sure does sound rosy!

Here's the whole report (more in depth than the link from the article if I'm not mistaken):

http://www.ssa.gov/oact/TR/2012/tr2012.pdf

Specifically, see where and how the FYE 2011 surplus came about. Also, see short range anticipated results for 2012, and long term projections for decades ahead.

It is indeed in trouble. Though you are right, not as bad of a chicken little scenario as some make it out to be. But also not as glorious of a scenario as some others do. As usual, the truth lies somewhere in the middle.

Sack

eg8r
05-07-2012, 02:37 PM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">
Social Security is doing very well even though you’ll hear this constant whisper that “Social Security won’t be there for you”; well – if that ever comes to pass…it will be the single largest transfer of wealth from the working classes to the richest among us. You can read the Trustees report HERE . This doesn’t mean that it’s not without problems or that we can rest on our laurels; that would be far from the truth. But it doesn’t mean the sky is falling either Chicken Little.</div></div>LOL, I am sure the author forgot about all the baby boomers. LOL, the author probably also forgot about the Obama UE numbers which certainly are not helping fill the coffers.

eg8r

Soflasnapper
05-07-2012, 05:36 PM
The reason the payroll tax was jacked to so high an increase WAS TO TAKE CARE OF THE BOOMERS. To a close approximation, it did that, or by far, most of what was required, on an actuarial analysis.

eg8r
05-07-2012, 07:40 PM
Time will tell, but if you think the government was "right on" with their numbers then I am sure you will dump all your retirement savings and wait to take advantage of that nest egg called social security.

eg8r

Gayle in MD
05-07-2012, 09:37 PM
More Republican Fear Mongering!

They have only had a few firm policies.

Give to the rich, and take from the rest!

Obstruct Progress.

Obstruct voters who vote Democratic.

Throw the election with political redistricting, and voter disenfranchisement.

Reverse all social aid and redistribute it to corporations who pay for their corruption.

Fear Monger the country with the usual scary wolves, Bush, or the scary Bears,Reagan, just any kind of threatening 'Other' they can come up with in their campaigns to frighten their terrified little weeines.

Deny allprogress.

Obstruct Voters.

Block progress.

Deny responsibility.

Slander all Liberals.

Turn as many Americans against one another as possible.

Destroy the Separation Of church and State.

Deny Science!

Lie about what they will do if they win back the Senate and the W.H.

Keep on bashing the President that most of this country really likes!

It won't work!

They will fail.

Stretch
05-08-2012, 01:42 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">More Republican Fear Mongering!

They have only had a few firm policies.

Give to the rich, and take from the rest!

Obstruct Progress.

Obstruct voters who vote Democratic.

Throw the election with political redistricting, and voter disenfranchisement.

Reverse all social aid and redistribute it to corporations who pay for their corruption.

Fear Monger the country with the usual scary wolves, Bush, or the scary Bears,Reagan, just any kind of threatening 'Other' they can come up with in their campaigns to frighten their terrified little weeines.

Deny allprogress.

Obstruct Voters.

Block progress.

Deny responsibility.

Slander all Liberals.

Turn as many Americans against one another as possible.

Destroy the Separation Of church and State.

Deny Science!

Lie about what they will do if they win back the Senate and the W.H.

Keep on bashing the President that most of this country really likes!

It won't work!

They will fail.

</div></div>

And those are their GOOD points. St.

LWW
05-08-2012, 05:14 AM
[quote=DiabloViejo]You can read the Trustees report HERE (http://www.ssa.gov/oact/TRSUM/index.html) ...

And the regime counted on the fact that you would accept their story and never possess h intellectual integrity to actually read te report.

If you would have, and we both know you didn't, you would realize that your linked article is junk accounting at it's worst.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Both Medicare and Social Security cannot sustain projected long-run program costs under currently scheduled financing, and legislative modifications are necessary to avoid disruptive consequences for beneficiaries and taxpayers.

Lawmakers should not delay addressing the long-run financial challenges facing Social Security and Medicare. 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. Earlier action will also help elected officials minimize adverse impacts on vulnerable populations, including lower-income workers and people already dependent on program benefits. ...

Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983, and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period. The deficit of non-interest income relative to expenditures was about $49 billion in 2010 and $45 billion in 2011, and the Trustees project that it will average about $66 billion between 2012 and 2018 before rising steeply as the economy slows after the recovery is complete and the number of beneficiaries continues to grow at a substantially faster rate than the number of covered workers. ...

The Medicare HI Trust Fund faces depletion earlier than the combined Social Security Trust Funds, though not as soon as the Disability Insurance Trust Fund when separately considered. The projected HI Trust Fund's long-term actuarial imbalance is smaller than that of the combined Social Security Trust Funds under the assumptions employed in this report. ...

The drawdown of Social Security and HI trust fund reserves and the general revenue transfers into SMI will result in mounting pressure on the Federal budget. In fact, pressure is already evident. For the sixth consecutive year, the Social Security Act requires that the Trustees issue a "Medicare funding warning" because projected non-dedicated sources of revenues—primarily general revenues—are expected to continue to account for more than 45 percent of Medicare's outlays, a threshold breached for the first time in fiscal year 2010.

Conclusion

Lawmakers should address the financial challenges facing Social Security and Medicare as soon as possible. Taking action sooner rather than later will leave more options and more time available to phase in changes so that the public has adequate time to prepare. ...

Projected long-range costs for both Medicare and Social Security are not sustainable under currently scheduled financing and will require legislative action to avoid disruptive consequences for beneficiaries and taxpayers. If lawmakers act sooner rather than later, they can consider more options and more time will be available to phase in the changes, giving the public adequate time to prepare. Earlier action would also help avoid adverse impacts on vulnerable populations, including lower-income workers and people dependent on program benefits. ...

By this measure, the OASI Trust Fund is financially adequate throughout the 2012-21 period, but the DI Trust Fund fails the short-range test because its projected trust fund ratio falls to 83 percent by the beginning of 2013, followed by exhaustion of assets in 2016. ...

Beginning in 2021, net redemptions of trust fund assets with General Fund payments will be required until exhaustion of these assets in 2033. After OASDI trust fund exhaustion, continuing tax income would be sufficient to pay 75 percent of scheduled benefits in 2033 and 73 percent in 2086. ...

The Social Security outlook has worsened significantly relative to last year's report. ...

While there is no way for us to know what mixture of additional tax revenues and restraints on benefit growth will prove to be the most palatable means of strengthening Social Security's financial position, lawmakers should be aware that it will become increasingly difficult to avoid adverse effects on current beneficiaries, those close to retirement, and low-income beneficiaries in all birth cohorts if legislative changes are delayed much further.

The weak economy of recent years has placed both direct and indirect pressure on Social Security. It has placed direct pressure on program finances by depressing payroll tax income. Much of the financial deterioration in this year’s Social Security report reflects updated economic data and assumptions, including weaker-than-expected economic performance and unexpectedly high inflation in 2011. But the weak economy has placed indirect pressure on the program as well, in that lawmakers have relieved workers of part of the tax burden of financing Social Security benefits so as to bolster near-term economic growth. Under this policy, over $200 billion will be transferred from the General Fund of the Treasury to replace foregone Social Security tax collections. In 2011, due in large part to this change in program financing, payroll tax revenue represented only 70 percent of total Social Security income. Lawmakers should carefully consider whether continued significant General Fund financing for Social Security could threaten to undermine long-standing public perceptions of the program as an earned benefit financed by workers according to contributory social insurance principles. ...</div></div>

Your embarrassment was entirely avoidable ... But first you have to stop eing a willing tool.

Qtec
05-08-2012, 05:32 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">Time will tell, but if you think the government was "right on" with their numbers then I am sure you will dump all your retirement savings and wait to take advantage of that nest egg called social security.

eg8r </div></div>

Sounds like something a 12 year old Conservative nerd might say!
Sofla NEVER said that the Govt were quote, "right on"with their numbers. Not in this thread!

<span style='font-size: 20pt'>You made that up.</span>



WE HAVE BEEN THROUGH THIS BEFORE!

Maybe, just maybe the Bush admin wasn't telling the truth about the state of the economy. Think about it. If Obama was going by the FALSE info that Bush was feeding the nation, who knows? Maybe they would have come up with a different prognosis.

Here you go, was he lying?

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 26pt'> Bush: U.S. economy is thriving
The president credits tax cuts with helping the U.S. economy grow.</span>
August 8 2007: 2:35 PM EDT

NEW YORK (CNNMoney.com) -- President Bush said Wednesday the U.S. economy is thriving and he is doing what it takes to keep it strong. <span style="color: #3333FF">[ so Obama can't take credit for eliminating the USA's #1 enemy, but Bush <u>can</u> take credit for a "strong economy" [ that was really falling down ], that's not self glorification? ]</span>

The president spoke with economic advisors at the Department of Treasury and discussed how the United States' economy has flourished and played an important role globally.
bush_may31_2005.03.jpg

"My administration follows a simple philosophy: Our economy prospers when we trust the American people with their own paychecks," Bush said.

In his remarks, Bush said tax cuts let Americans keep their own money and he would veto Congress' choice to raise taxes because it has helped the economy grow.

"Democrats in Congress want to increase taxes and turn them into additional government programs, and I strongly oppose that approach," Bush said.

Bush also addressed ways that he plans to tackle long-term challenges to the economy by opening up markets for goods and services and expanding free trade, concluding the Doha Round of trade negotiation, and reforming the health care system to make it more affordable and available.

<u>Bush also thanked Treasury Secretary Hank Paulson for joining his administration, after a long career as one of the world's most successful investment bankers.</u>

<span style='font-size: 26pt'>Bush quoted Paulson as saying, <u>"This is far and away the strongest global economy I've seen in my business lifetime."</u> </span></div></div>

How wrong can somebody be?

Answer: As wrong as egOr.


Q

Gayle in MD
05-08-2012, 07:48 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">Time will tell, but if you think the government was "right on" with their numbers then I am sure you will dump all your retirement savings and wait to take advantage of that nest egg called social security.

eg8r </div></div>

Sounds like something a 12 year old Conservative nerd might say!
Sofla NEVER said that the Govt were quote, "right on"with their numbers. Not in this thread!

<span style='font-size: 20pt'>You made that up.</span>



WE HAVE BEEN THROUGH THIS BEFORE!

Maybe, just maybe the Bush admin wasn't telling the truth about the state of the economy. Think about it. If Obama was going by the FALSE info that Bush was feeding the nation, who knows? Maybe they would have come up with a different prognosis.

Here you go, was he lying?

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 26pt'> Bush: U.S. economy is thriving
The president credits tax cuts with helping the U.S. economy grow.</span>
August 8 2007: 2:35 PM EDT

NEW YORK (CNNMoney.com) -- President Bush said Wednesday the U.S. economy is thriving and he is doing what it takes to keep it strong. <span style="color: #3333FF">[ so Obama can't take credit for eliminating the USA's #1 enemy, but Bush <u>can</u> take credit for a "strong economy" [ that was really falling down ], that's not self glorification? ]</span>

The president spoke with economic advisors at the Department of Treasury and discussed how the United States' economy has flourished and played an important role globally.
bush_may31_2005.03.jpg

"My administration follows a simple philosophy: Our economy prospers when we trust the American people with their own paychecks," Bush said.

In his remarks, Bush said tax cuts let Americans keep their own money and he would veto Congress' choice to raise taxes because it has helped the economy grow.

"Democrats in Congress want to increase taxes and turn them into additional government programs, and I strongly oppose that approach," Bush said.

Bush also addressed ways that he plans to tackle long-term challenges to the economy by opening up markets for goods and services and expanding free trade, concluding the Doha Round of trade negotiation, and reforming the health care system to make it more affordable and available.

<u>Bush also thanked Treasury Secretary Hank Paulson for joining his administration, after a long career as one of the world's most successful investment bankers.</u>

<span style='font-size: 26pt'>Bush quoted Paulson as saying, <u>"This is far and away the strongest global economy I've seen in my business lifetime."</u> </span></div></div>

How wrong can somebody be?

Answer: As wrong as egOr.


Q
</div></div>


<span style="color: #CC0000">That is Bush, creating propaganda to try to protect himself from the inevitable bad marks his presidency would receive from historians.

The Liar already knew when he was saying those things, that the crash was coming.

Conservatism is actually nothing more than propaganda. Has been for decades.

G.</span>

eg8r
05-08-2012, 08:36 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: qtip again showing little brain power</div><div class="ubbcode-body">Sofla NEVER said that the Govt were quote, "right on"with their numbers. Not in this thread!
</div></div><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: sofla telling us the government numbers were right on</div><div class="ubbcode-body">The reason the payroll tax was jacked to so high an increase WAS TO TAKE CARE OF THE BOOMERS. To a close approximation, it did that, or by far, most of what was required, on an actuarial analysis.</div></div>

So we have sofla telling us the government estimations were correct and qtip telling us that sofla did not say what he said. /forums/images/%%GRAEMLIN_URL%%/smile.gif LOL, there is a reason you are the copy/paste queen on the board, you have no brain power.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Maybe, just maybe the Bush admin wasn't telling the truth about the state of the economy.</div></div>Didn't matter, according to Obama it was the worst ever. Little did we know Obama would make it even worse.

eg8r

Qtec
05-09-2012, 06:05 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Social Security is doing very well

<span style="color: #990000">LOL, I am sure the author forgot about all the baby boomers.</span>

The reason the payroll tax was jacked to so high an increase WAS TO TAKE CARE OF THE BOOMERS.

<span style="color: #990000">Time will tell, but if you think the government was "right on" with their numbers</span>]</div></div>

If they had know that Bush was going to trash the economy and create massive UE they would have included it in their calculations!


Q

eg8r
05-09-2012, 07:26 AM
LOL, likewise had they known Obama was going to be even worse than Bush they would have just quit.

eg8r

Qtec
05-09-2012, 07:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">LOL, likewise had they known Obama was going to be even worse than Bush they would have just quit.

eg8r </div></div>

That's a lie.

link (http://billiardsdigest.com/forums/ubbthreads.php?ubb=showflat&Number=383517#Post383517)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">"Obama's record spending spree is bankrupting the nation" is yet another Big Lie right-wingers like Goldberg -- who incidentally was a cheerleader for Bush/Cheney while they were turning record surpluses into record deficits -- are telling about Obama. It's a lie Mitt Romney will tell during the campaign.

<span style='font-size: 14pt'>And it's a lie that the media will probably them get away with. </span></div></div>

It only works with spoon fed saps like you.

Q

eg8r
05-09-2012, 10:46 AM
LOL, you have been living a lie for a long time on this board. As far as Obama, we are worse off because of him.

eg8r

Qtec
05-09-2012, 06:41 PM
Name one thing he has done that has made you worse off?

Q

eg8r
05-10-2012, 08:16 AM
He has driven this country to record debt which affects all Americans.

eg8r

LWW
05-12-2012, 04:36 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">So we have sofla telling us the government estimations were correct and qtip telling us that sofla did not say what he said.

eg8r </div></div>

With doublethink, they can believe both tat he did and that he didn't say it.