Politics

Scary scare tactics from the poorly informed … or just plain liars about Social Security

What is most frightening about the Facebook post duplicated below is that people share it without question or thinking about what it says.


imageThe fact is nobody stole anything from Social Security and over the next eighteen years all the taxes (plus interest) collected will be paid back as benefits … and then if no changes are made before then it will all be gone.

Let’s try this one more time.

  • Incoming taxes go to the Social Security Trust
  • Trust pays benefits and uses excess to buy special US Treasury Bonds
  • US Treasury pays interest on the bonds to the Trust

But wait‼️ That process no longer works because incoming taxes are insufficient. So today this happens.

  • Incoming taxes go to the Social Security Trust
  • Trust uses all taxes to pay benefits, but the taxes are less than the benefits to be paid
  • Trust uses interest paid to it by US Treasury to assure all benefit are paid

But wait‼️ Before 2034 taxes and interest will be insufficient to pay full benefits

  • Incoming taxes go to the Social Security Trust
  • Trust uses all taxes to pay benefits, but the taxes are less than the benefits to be paid
  • Trust uses interest paid to it by US Treasury to assure all benefits are paid, but wait‼️
  • Over the next eighteen years the Trust redeems the outstanding Treasury Bonds to pay the benefits (in other words, the Government pays back the money it previously borrowed from the Trust)

But wait‼️ Now it is 2034

  • All the Treasury Bonds have been redeemed
  • There is no more interest being paid to the Trust
  • Incoming taxes are sufficient to pay about 75% of Social Security benefits

 

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3 replies »

  1. But wait, Congress has 18 years to fix it and it is a great voting tool for the corrupt politicians. And they will use it every election cycle. Also, organizations like AFF, AARP, DNC and others can get money from the sheeple, lying to them and laughing all the way to the bank. How come we almost never see any of these concerns about SS in none election years?

    Like

    • You have a point. Every year the Trustees raise the concerns, urge congress to act and make suggestions and each year they are ignored.

      Like

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