Quote:
Originally Posted by JGVillages
Here is what happens when we put people who really are not disciplined in charge of SS.
Abuse of the Social Security Trust Fund Began in the 1980s
by Allen W. Smith / November 28th, 2009
The mishandling of Social Security funds has been going on since the mid-1980s. As soon as the surpluses, resulting from the 1983 payroll tax hike, first began to flow into the Treasury, politicians from both political parties began using the money like a giant slush fund. At that time, it would be at least 30 years before the funds would actually be needed for Social Security, so politicians developed the bad habit of “temporarily borrowing” the money and using it for non-Social Security purposes. That bad habit never was broken, and every dollar of the $2.5 trillion in surplus Social Security revenue, generated by the tax hike, has been spent, leaving no real assets in the trust fund.
This is where the continuing problem started.
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While this was true, the Social Security Administration says that nearly all of that money has been repaid and used. If there is a temporary surplus in the federal government, it is not allowed to just put the money in stocks or something.
There is an easy solution to the “Social Security crisis”. Raise the withholding tax for both employees and employers by 0.2% a year for five years, then keep it there. That extra total of 2% per year from us to our Social Security fund will do the trick. Starting next year, I think, the full retirement benefit age will be 67. It’s 66 at present. That helps a lot, too. If everyone waited until then instead of drawing money at 62, that would help.
In twenty years, most Baby Boomers will be dead, and there will be less demand.