4/17/2005

4-17-05 - 9

4-17-05

The truth about Social Security. The real truth is that if the SS trust fund was properly funded, and it appreciated at a conservative rate and everything continued roughly as is, then SS would be solvent until 2040 or later. Furthermore, event a small increase in the SS tax on the rich and a small decrease in the SS payouts to the middle-upper class would make SS solvent for the forseeable future (to 2100). The real problem that no one is talking about is that the government has been stealing from the SS trust fund since it was created. Administrations like the current one have decreased taxes and increased spending, and funded the difference in part by stealing from the SS trust fund. I believe that part of the secret agenda behind this administration pushing for "Social Security sabotage" is to wipe that balance sheet. Currently we owe 1.5 trillion to the SS trust fund, and roughly 3 trillion total to all the government trusts. The government has spent this money as if it were general tax money. What that means is that we are secretly being taxed with a non-progressive tax (it's roughly a 12% flat tax), which is going to general expenditure. The proposed Social Security sabotage will wipe this out and mean that all of this non-progressive tax which has been paid over many years will have just been a subsidy for the rich, by allowing us to cut taxes for the rich and make up the balance from SS.

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