Social Security deficit

Democratic Party really believe that the federal deficit and the national debt is not conducive to social security? Of course, they say a lot:

No. 2 in the Democratic Party in the Senate, Senator Dick Durbin of Illinois, adhere to the "Social Security does not increase what you pay for our debt, not a penny, the Sunday ABC'sThis weeks.

At Monday's briefing, White House press secretary Jay Carney repeated theme is: "The drivers, we have to solve the deficit and Social Security is not the driver of the deficit - it is an economic fact."

Well, this is a fact, does not make it so.

Durbin: "Social Security crisis

Durbin, Carney and others do, claiming that the president's own budget to take a look, take a look at exactly what happened on. 465, budget analysis perspective, they will find a chart showing last year, the social security deficit of $ 480 billion this year, Social Security will come up with 50.7 billion yuan short in 2015, as more and more The retirement of baby boomers, cash and cash gap between, is expected to reach $ 8.66 billion.

Need a second source? In a report released last month, the Congressional Budget Office, Social Security benefits began to exceed payroll tax revenues in 2010, and there is no change, the plan will not restore the balance.

Deny this harsh reality, the need for accounting shell game, and I believe (or pretend to believe), the Social Security Trust Fund to bail out. If you believe that we have a bridge to sell you in Brooklyn.

Social Security has been with the pay-as-you-go plan: annual payroll tax, annual funding effective. From 1983 to 2009, the Social Security collects more in taxes than it pays benefits. Trust Fund surplus should go, Gore called a "lockbox" protection when he ran for president in 2000. Alas, there is no password box, never had the money come from the Ministry of Finance equally quickly go out and spend IOUs instead of the day-to-day work of the government in the day-to-day expenses and filing cabinets.

Difference between finance the payment of benefits and tax levy, the need to borrow money, thus increasing the annual deficit and the cumulative increase in the national debt. This is the "economic facts."

Of course, the Democratic Party political interests to avoid this problem, keep the social security negotiations sudden tax increases and spending cuts at the end of the fiscal cliff. "I do not intend to be part of it, part of the social security, these talks on the deficit," Senate Majority Leader Harry Reid, Harry Reid, D-Nevada, told reporters this month.

Really? The Democratic Party hopes to exactly how to bend its destructive Republicans reject tax increases, if the Democratic Party in its destructive refusal trim unsustainable welfare programs, not bent?

More than one-fifth of federal spending, Social Security ignored too big. The most likely repair is well known. These measures include raising the income ceiling payroll taxes, cost of living adjustments, and more closely tied to the actual inflation rate, raise the retirement age for future retirees able-bodied. The faster these changes, they will be less painful.

Support plans start with the politicians say is the truth how Social Security works. This is the White House and congressional Democrats apparently believe that the public can not handle things.