[Stu from NYC]

Originally Posted by tuccillo

You can certainly debate whether the program should have been setup differently, for example a system where the money is actually in an account with your name attached vs. the pay as you go approach. However, to suggest that the money was raided doesn't tell the whole story. Money collected in excess of benefits paid (and subsequently spent to fund Government operations) was actually credited to the SS Trust Fund. This Trust Fund is invested in a special form of Government Treasuries and does earn a return each year. The Government is essentially prohibited from investing the excess FICA taxes in anything other than this special form of Government Treasuries. It's current value is just shy of $3 trillion. This $3 trillion in Treasures is just starting to be cashed in and the balance will go to zero over the next 12 years or so as benefits paid exceed FICA taxes collected. Once the SS Trust Fund is exhausted, benefits will be reduced by 20-25%. The cashing in of the SS Trust Fund will be funded by issuing new debt. Sigh ...The real problem is the Government chooses to spend more than they take in from taxes, of any kind. I believe the FICA tax rate should have been adjusted annually so that taxes coming in equals the benefits paid out rather than "collect" the excess in the SS Trust Fund, which is just a promise to issue more debt in the future. SS needs some adjustments, just as it did in the early 1980. The inability of Congress to address this issue is another serious problem. And so we go round and round ...

very well said