Sunday, August 1, 2010


Harry Reid (D-NV), Senate Majority Leader, recently said Social Security is not broke. Reid to Netroots: "We're Going To Have a Public Option"
During a question and answer session, Reid also argued against "fear tactics of those who say Social Security is going broke. It's not."
And here. Out-Of-Touch Harry Reid Calls Social Security Insolvency A Myth
Reno, NV - During the Nevada Democratic Party Convention that was held over weekend, Senator Harry Reid called the idea of Social Security insolvency a “myth” while claiming that the fund should remain solvent for at least another 40 years. Reid went on to say that this “myth” was perpetuated in order to scare senior citizens,as noted by reporter Jon Ralston.
That's what Harry says. This is the truth. Social Security Jitters? Better Prepare Now
is from the "New York Times".
The program, which has its own dedicated stream of income, is projected to pay out more this year than it is taking in, but that is a function of the weak economy. [Emphasis Mine]
That's the bad news. The good news is this.
Social Security will, according to the last annual report from its trustees, be able to pay full benefits through 2037. Then, if there are no changes in the program in the meantime, the taxes collected will be enough to pay out only about 75 percent of benefits through 2083.
However it is prudent to note that the Social Security Trust Funds are not in a Lock Box. These dollars have been used by Congress for years to fund all the spending. What is really in the Social Security Lock Box is a bunch of IOUs signed by Congress.

These IOUs can only be made good by Congress taking money from the General Revenue, unless some changes are made in The Social Security System. There are several proposals. Raise the retirement age to 70, or cut benefits, or raise the FICA payroll taxes, or increase the limit on earnings subject to Social Security Tax, or some combination of these ideas. But it is clear. Something must be done and the sooner the better. The other thing clear to me is Harry Reid is Wrong.

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