Social Security- from lock box to slush fund. Can anyone look beyond 2012?

20 Jun

Deficits and debt

If you look at many of the fifty states you will find that their state worker pensions are grossly underfunded.  This is largely the result of overly optimistic earnings assumptions, and the failure of the states to adequately fund the trusts often diverting money to other purposes.  Clearly this is not a model we want to follow on a national basis…or do we?

For 2011 our elected politicians decided that lowering the Social Security payroll tax would stimulate the economy (and apparently that further underfunding Social Security was not a problem).  Now in the interest of the short-term economy, proposals are being circulated to extend the tax reduction and perhaps even to increase the cut in payroll tax and to include a tax cut for employers as well. 

Holy cow!

Payroll Tax Raid on Social Security


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