Short, sweet LTTE re: Social Security

[Atman]

Why can't our leaders think this way?

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Stop Turning Surplus Into Debt
May 10, 2005

Social Security's main problem isn't declining numbers of workers per retiree, as suggested in The Courant's May 1 editorial <"Means Test For Social Security?">. That problem was forestalled by the 1983 reforms that created ongoing trust fund surpluses for the first time. The real problem is the Reagan-Bush 1983-2005 continuum of annually looting all of Social Security's cash surpluses to mask federal budget deficits. Even Clinton did it to exaggerate surpluses.

The solution is simple but sequential. This president must order the Treasury to immediately quit "borrowing" Social Security funds at unconscionable low interest, start repaying now instead of waiting until 2018, then allow Social Security to seek free-market returns on its newfound cash accumulations. Until that happens, there is no point in devising new ways to enhance Social Security funds because the Treasury would simply "borrow" them, too, thereby increasing both the national debt and the mushrooming trillions owed to Social Security by the income tax payers of 2018 and beyond.

Converting today's wage taxes into debt to be paid by tomorrow's income tax payers must stop. Proper management of Social Security's cash flow must start.

Helen Kulak
New Britain


Hartford Courant LTTE

[whistle]

1. Someone needs to explain how the Social Security trust fund....

...surpluses are used to offset federal deficit spending, when in fact the money is borrowed with interest. In the business world, those numbers do show up on a balance sheet as a liability.

[ibid]

2. Exactly on Point - and great solutions - only one factual error -

"unconscionable low interest" is not being paid.

The additional bonds given the trust that represent interest are calculated at market rates.

Of course Bush never intends to pay those bonds off by raising cash via the FIT.

[TahitiNut]

3. "unconscionable low interest"?? Hardly.

The following is calculated by dividing annual interest revenues by the beginning annual balance. While not at credit card rates, these interest rates are sure better than anyone would get from a bank on their deposits.

[displacedtexan]

4. Wasn't it cute when George W. laughed at the "Lockbox" but...

promised to guard it (Wink! Wink!)?

[Kansas Wyatt]

5. I just do not understand why it is not criminal for Shrub to say,

'That there is no difference between payroll taxes and income taxes,' as he spends payroll taxes like it is revenue from income taxes (he's even stated that he is only putting "worthless IOUs" in the payroll fund).

Why in the Hell is the country not outraged by this?

[Atman]

6. Because on the Bush Scale of Criminality, this is a parking ticket. nt

nt