Obama : Social Security can be fixed

[thundley4]

cory777 (156 posts)           Sat Feb-20-10 01:41 AM
Original message
Obama: Social Security fix would be simple
   
Source: AP

Fri Feb 19, 9:52 pm ET

HENDERSON, Nev. – President Barack Obama says Social Security is slowly running out of money but that it can exist well into the future with a slight fix.

The system is funded with a tax on earnings, up to $109,000 a year. Obama says lifting that cap to tax a larger share of income would be one way to extend the system of monthly payments for retirees. It also would be unpopular with some.

Without an adjustment, Obama said Social Security will start to run out of money in about 20 years as more people begin collecting benefits.

Teh Stoopid Is Strong

AllyCat   (1000+ posts)           Sat Feb-20-10 01:50 AM
Response to Original message
1. I really don't think I have a problem with that.

Of course not, it would never affect you.

defendandprotect (1000+ posts)             Sat Feb-20-10 01:50 AM
Response to Original message
2. We should lift the cap, substantially . . .but Social Security is solvent to 2038 or beyond ...
   
Edited on Sat Feb-20-10 02:14 AM by defendandprotect
and if all the money borrowed from Social Security were returned it would be

INFINITELY SOLVENT!!

Social Security is running HUGE SURPLUSSES every year -- borrowed by Bush, for one,

to pay for tax cuts for the rich and for the wars.

Social Security was NEVER inteneded to run a surplus -- it is a "pay as you go" system.

The SURPLUS is used to disguise the immense MIC/WAR budget!!

They also ran another scam in allegedly raising extra money for boomer retirements by

increasing FICA payments on poor and middle class. That extra funds are still being

collected -- but the money is used as a SLUSH FUND.

Currently, it's at least $150 BILLION a year!!

If not more?

sandnsea   (1000+ posts)           Sat Feb-20-10 02:01 AM
Response to Reply #2
5. Not exactly
   
The social security surplus has absolutely nothing to do with disguising the war budget. It was implemented back in 87 to cover the cost of baby boomer retirees. Yes it is used as a slush fund, and was also used by Clinton to pretend we had a surplus when we really didn't. Al Gore was right, that money needed to go in a lock box.

Anyways, do you have a figure that indicates that all the excess FICA money would fund social security and medicare? I've never seen a chart like that, would like to if it exists.

No! It's All Bush's Fault !1!1

defendandprotect (1000+ posts)             Sat Feb-20-10 02:21 AM
Response to Reply #5
7. Social Security Trust Fund is intended to be independent of the general budget -- it is not!!
   
And the fact that it is not "neutral" -- i.e., "pay as you go" --

puts its surplusses against any part of the budget -- but mainly hides the

overwhelming and obscene amounts that the Military industrial intelligence complext take --

Social Security has run a SURPLUS which has been increased over and again to raise more

SLUSH MONEY --

In fact, Poppy Bush wanted to raise more slush money by sending the IRS out after the poor.

The reaction to that idea by public was such disgust that they decided instead to raise

more slush money thru FICA. Allen Greenspan worked that out in the middle of the night!

Social Security and Medicare are two different programs --

And whatever difficulties Medicare has are correctable -- but meanwhile, I think we would

all agree that there is a moral responsibility for the government to fund whatever excess

needs to be funded.

Social Security -- by W Bush's own accountants -- confirmed that Social Security was

solvent thru 2038 -- and even beyond that! If all monies were returned, it would be

infinitely solvent --

Again -- two different programs --

sandnsea   (1000+ posts)           Sat Feb-20-10 02:31 AM
Response to Reply #7
11. Social Security and Medicare have the same problem
   
Not enough money. Medicare tax is a required payment under the FICA law, it's paid by businesses in the same check, same form, same time.

Yes Social Security has run a surplus, you don't need to tell me that. I said the Clinton surplus was FICA and should have been put in Al Gore's lock box.

It does not, however, have anything to do with Bush's wars.

You do know that Republicans called social security FDR's slush fund, right?

Regardless, we are where we are. I would still like to see the figures that show the surplus would fund social security forever

God, these idiots do not understand the Ponzi Scheme that Social Security really is.

[The Village Idiot]

The money never ever runs out, does it, morons?

[formerlurker]

Obama says lifting that cap to tax a larger share of income would be one way to extend the system of monthly payments for retirees. It also would be unpopular with some.

How the hell is that fixing the problem? 

[Carl]

When enacted the average life expectancy was younger then the qualifying age.
The damn thing was never intended to work as people think it is supposed to.

[thundley4]

Also, there were many more working people to support each retiree.  Still it was nothing but a Ponzi Scheme to give the government money to spend.

[The Village Idiot]

When enacted the average life expectancy was younger then the qualifying age.
The damn thing was never intended to work as people think it is supposed to.

Exactly.

[DumbAss Tanker]

It would sort of work, really, of course it amounts to a huge de facto 'Income' tax for anyone with an earned income over $110,000 (FICA taxes being a percent of income, even though levied under a different law than regular income tax).  Doesn't that kinda shatter some pledge he made about no new taxes of any kind on families earning $250K or less?

[The Village Idiot]

Obama "fixed" Social Security when he got rid of the COLA till 2012 or whatever.

[Carl]

Google "Notch babies"...some interesting takes on the last SS fix by a dem President and Congress.

[Lacarnut]

Obama "fixed" Social Security when he got rid of the COLA till 2012 or whatever.

These @ssholes in DC have not frozen their salaries. Time to vote most of these clowns out of office.

[USA4ME]

Uh, primitives....... Helicopter Ben already said how SS is going to be funded.  Why do you think he got the name Helicopter Ben?

.

[zeitgeist]

Great thread.

Surf and Turf put up an interesting post which will go largely ignored or be  misunderstood by the primitive marching kazoo band .

sandnsea  (1000+ posts)      Sat Feb-20-10 12:56 PM
Response to Reply #81
96. Oy, where to start
 You say yourself that social security has a surplus and they're spending it. Where would any surplus come from? FICA Taxes. That was the Clinton surplus. That is why Al Gore even brought up the lock box. This isn't a random "claim", it's a fact.

Medicare is not part of the general discretionary budget. It is funded through separate taxes that are paid through FICA.
 





Social Security has been set up through a trust fund from the very beginning. People paid in for 3 years before monthly benefits started being paid. The tax was increased in the 87 to fund the baby boom retirement.
http://www.ssa.gov/history/briefhistory3.html

I don't know why you keep saying Greenspan and Bush raised FICA in the dead of night, it didn't happen and there's no way in the world it could have happened.

We most certainly need to honor the obligations to social security recipients when there is no longer a FICA surplus. If we had paid down debt, the way Clinton proposed, then when social security needed to be repaid, we could have used general funds the way we did in the 70s. That's how it's supposed to work. Since we didn't budget adequately, we will have to raise FICA taxes and the reason needs to be made clear. The surplus was a FICA surplus and it went to the rich in the form of the Bush tax cuts. I want my money back and I do not want my benefits cut any further than they already have been.
 

Original expression:

Know the truth and the truth shall set you free.....

Dump expression:

Speak the truth and the mod will serve you pizza....

Surf and Turf might do well to remember that.

[dandi]

Hey DUmbasses. Remember the privatization ideas you went apeshit over way back when? If you had gone along with that your money would have been sitting in an account, waiting for you, and we wouldn't even be having this discussion.

Hell I'd rather stick mine under a mattress than trust Social Security with it.