Las Vegas Sun

January 31, 2015

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Letter to the editor:

How will Congress pay its huge IOU to Social Security?

Rep. Joe Heck is a little ahead of himself when he worries about Social Security going bust in 20 or 30 years.

Before we get to that point, Heck and the other members of Congress have another problem to solve that they have been ignoring for years. That problem is how to repay the $2.6 trillion that Congress has borrowed from the Social Security Trust Fund over the years.

Before Social Security goes bust, Heck and the Congress have to decide if they are going to borrow another $2.6 trillion from China or raise taxes by $2.6 trillion to pay back that little IOU tab they have run up.

The Republicans would like us to forget about this IOU and think there is a deficit in Social Security that is being paid out of the current budget. Nothing could be further from the truth. Congress is really paying back money it has borrowed from the Trust Fund.

I know that the Republicans have taken a strong stance against raising taxes for any reason, but it might be a little embarrassing for the Republicans if the Democrats were to point out the fact that the $2.6 trillion borrowed from Social Security is exactly the same amount that the Bush tax cuts have cost over the past 10 years.

Yes, folks, Social Security has been funding tax cuts for the rich. Only Congress can get away with creating a Ponzi scheme to cover up embezzlement.

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  1. Good letter Richard. I've never figured out this Republican thing that tax cuts for millionaires are good for the Economy, but $1100 monthly Social Security checks will bankrupt us.

    In 2003 when the Bush tax cuts were enacted, the unemployment rate was 6.2% Now, in the ninth year of those tax cuts, it is 9.1%. So, how is that job creation thingy supposed to work again?

  2. Nonsense, Pratt! The Social Security "Trust Fund" has been raided since its inception by both parties so they could bamboozle the American people. The dollars have been used to prop up failed social programs such as welfare, food stamps, housing subsidies, as well as foolish endevours such as the ethanol subsidy that make companies such as ADM rich while we pay more for food at the grocery. It's a scheme and a scam that's been perpetrated upon the American people since FDR and his legislative cronies devised a tax that everyone liked or at least thought they liked. It enabled all kinds of dopey social engineering and political payoffs to favored cronies for decades and now the bill is coming due and the piper must be paid, but not by me. You see, I'm one of the "beneficiaries" of the scam & scheme. You, Pratt, may be one of the victims. However, I am more than willing to give back some of my "largess" if it means and end to the raiding and solvency for the program for younger folks such as my children & grandchildren. How about you, Pratt? Or are you part of the "parasitic class?"

  3. We get it Jerry, you are a closet bigot who hates poor people because it is obviously their fault for not being born with a silver spoon in their mouth and attending the right schools while being members of the right clubs. And to top it off, as a beneficiary, it is self hatred. Wanker.

  4. "The Republicans would like us to forget about this IOU"

    Geez, what planet has this guy been living on? It's going to be tough getting SS straightened out with Demoklan members whining everytime someone like Joe Heck has the gall to talk about "reforms" and this kind of stuff going on. Of course the lib/leftwingers don't have a problem when the "poor" scam the system.

  5. The problem is not Social Security, it is gutless politicians that don't have the courage to maintain the system. When SS was established, the life expectancy in the US was 68-ish, now it is 78-ish. Instead of paying benefits for a few years, it now pays the last decade and a half.

    SS was not meant to take the place of retirement planning. It was meant to keep people who are too old to work from starving on the streets (the poverty rate for seniours at the time was >50%).

    The "solution" has been to raise the SS withholding cap, which is a tax on the middle class. The tax cap has gone from 80K in 2001 to 106.8K today. This additional tax directly targets hard working middle class people. The effective solution would be to tie retirement age to life expectancy, but no politician (republican or democrat) will propose this because they know there is no way to articulate it in a way that won't incur the wrath of the senior voters.

    With the huge advances in medical technology being developed, this problem is only going to get worse.

  6. Any reasonable person should be able to see that VegasEngineer has accurately described the situation. The math behind SS isn't rocket science.

    But an even bigger problem is showing up in Medicare and Medicaid. See this story that came across the AP wire today:

  7. It's worth repeating...

    "The Republicans would like us to forget about this IOU and think there is a deficit in Social Security that is being paid out of the current budget. Nothing could be further from the truth. Congress is really paying back money it has borrowed from the Trust Fund."

    Nail on the head, Richard!!!

  8. Mark Schaffer...

    Nail on the head, also!!!