Social Security in One Graph...

[Junkdrawer]

Now, when the Green line stays above the Blue line, that means that the "Trust Fund" is being built. And THAT means that the FICA flat tax is funding the government, taking pressure off that mean old Progressive Income tax. In short God is in His Heaven so God Bless Reagan for saving Social Security.

However, when the Green line dips below the Blue line for any moderate period of time, that means that funds generated by that mean old Progressive Income tax have to be used to redeem the bonds in the "Trust Fund". In short, lazy Takers are asking for Free Stuff and a Fiscal Cliff looms.

Just so we're clear.

[DJ13]

1. The answer is to raise the inflow so it exceeds the outflow

Is anyone in DC listening?

[pa28]

2. Yes. We built a huge surplus through extra FICA withholdings with the intention of a spend down.

SS should be allowed to run a deficit until the trust fund is depleted. That was the plan.

[Junkdrawer]

3. Exactly. Since 1985, SS is not pay-as-you-go. The whole "Reagan saved SS" was that we would build..

a "Trust Fund" to pay for the day when expenditures exceeded income.

Raise Capital Gains and the top rates of the Progressive income tax to repay the trust fund.

[aandegoons]

4. Has a lot to do with the economy

Need more folks with a living wage.