Yes, there is a surplus now but for the past 4 yrs, revenue has not been sufficient to pay current beneifts so they have had to draw from that surplus. It is projected by the Social Security Trustees and the Congressional Budget Office that this will continue to approximately 2034 when, if nothing
is done to address the problem,the surprlus will be depleted. If that occurs, current revenue is projected to be sufficient to cover only about 78% of benefits.
Lift the deduction cap. I understand that would fix the future of. SS. Also, make billionaires pay taxes. That will fix everything. Because if that ever happens, it means the good guys are in charge.
As for the billionaires, the problem is that most of them do not have the kind of income (wages) that is subject to Social Security withholding. They borrow against their assets. It's called the "buy, borrow, die" strategy.
Agree but FYI, it won't fix it for as long as most people think it will. Depending on which of the two alternatives under discussion is chosen, it would be either 2037 or 2046.
"The first alternative, which would increase the taxable share of earnings from jobs covered by Social Security to
90 percent, would delay the exhaustion of the combined trust funds by 4 years, until calendar year 2037. The second alternative, which would apply the 12.4 percent payroll tax to earnings over $250,000, would delay the exhaustion of the combined trust funds by 13 years, until calendar year 2046."
The demographics are not there unless we allow legal immigration in sufficient numbers to compensate for the shortfall. Other alternatives would be a reverse means test where if your assets >x, no or reduced benefits. Roosevelt thought that would imperil the whole system though.
No one "took" anything. As explained above, it is how the law works. And it happens in any year where there is excess revenue, which has happened under D presidents, R presidents, D-led Congress, R-led Congress. https://www.ssa.gov/oact/STATS/table4a3.html
The reason the word "borrowed" is in quotes is because it is not deliberate on the part of Congress. It is a function of the fact that the law requires that any excess revenue be invested in Treaury bonds. The money paid for those bonds goes into the general fund where it can be and is used for any
Yes, they are paid for by a separate tax (matched by the employer), plus the tax on benefits, plus the interest on the Treasury bonds, into which, by law any excess revenue must be invested. Bonds are debt instruments! Right now, the debt held by Social Security is about 7% of the national debt.
This is fact. The reality is that this started under Bill Clinton who used it to balance his budget. It is criminal and Americans whine about it, but do nothing.
Comments
"The first alternative, which would increase the taxable share of earnings from jobs covered by Social Security to
https://www.ssa.gov/oact/STATS/table4a3.html
charge them 28.75% like most people have on credit cards.
https://www.epi.org/publication/social_security_and_the_federal_deficit/
All debated on stage every General Election, but IGNORED all the solutions to reverse their theft
Pay It Backwards saves an estimated $668 BILLION per YEAR, no raised age & no lost payout
Our reps KNOW THIS
We LOST on both ends of his racism tool to deport turned to crimes disappearing our People
Until...we use our courts to WIN to arrest & jail THEM ALL
Anyone who says we "can't", is ignorant & NOT on our side!