SOCIAL SECURITY

MORE TRUTHS ABOUT SOCIAL SECURITY YOUR DAILY MEDIA WON'T TELL YOU

DEAN BAKER, PROSPECT - The most recent projections from the
non-partisan Congressional Budget Office show that Social Security will
have enough money between projected taxes and the bonds in the trust
fund to pay all benefits through the year 2046, with no changes
whatsoever. This is very important to understand when someone like
Federal Reserve Board Chairman Ben Bernanke proposes cuts to Social
Security. Workers have already paid for these benefits. The Social
Security tax is very regressive. Its regressivity can be justified by
the progressive payback structure of the program. However, if the
benefits are cut, at a point when the program can still easily afford
the benefits (e.g. 10-20 years), then the government has effectively
stolen from the people who paid Social Security taxes.

There are many people who want to do this - effectively default on the
government bonds held by the Social Security trust fund. If this default
is now on the national agenda, then it certainly seems reasonable for
the workers who are losing their benefits to raise the prospect of
defaulting on government bonds more generally. After all, what can
possibly be the rationale of only defaulting on the government bonds
held by workers through the Social Security trust fund, but not
defaulting on the government bonds held by the wealthy people who think
this is such a good idea?

http://www.prospect.org/deanbaker/2007/01/the_social_security_trust_fund.html


MORE ON SOCIAL SECURITY
http://prorev.com/socsec.htm

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