The mouthpiece for the rich, the Committee for a Responsible Federal Budget, has a web site that says this:
Social Security provides vital income security to millions of beneficiaries but is on a road toward insolvency.
The Social Security program currently pays more in benefits than it collects in revenue, and under the latest official projections, its trust funds will run out in 2035.
At that point, all beneficiaries regardless of age and income will face an immediate 20 percent benefit cut.
CRFB’s “The Reformer” allows users to choose from a number of options to modify Social Security tax and benefit levels in order to close the program’s 75-year shortfall and keep it sustainable for future generations.
See how your choices stack up!
The truth: The federal government cannot become insolvent. SS is a federal agency. Like the government, SS can’t become insolvent unless Congress and the President want it to.
The so-called SS “trust funds” are not real trust funds. They are line items on balance sheets that the federal government can control at will. They can increase or decrease the balances just by pressing computer keys.
The non-issue of sustainability is to make you believe you have to give up benefits so that by comparison, the rich get richer.
Then, the CRFB gives you a little online game that shows you how much to cut your benefits so that the federal government won’t run out of dollars.
Of course, it’s all a lie. As you (and they, surely) know, our Monetarily Sovereign government, the creator of the dollar, cannot run out of the dollars it freely creates every minute of every day.
Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”
Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
But the CRFB doesn’t provide that information. Instead, it provides the following choices, which ask you how much less you would like to receive from Social Security:
Increase (+) / Reduce (-) Initial Benefits
Slow Benefit Growth for Top 70% of Earners
Slow Benefit Growth for Top Half of Earners
Slow Benefit Growth for Top 20% Of Earners
Increase Retirement Age
Raise Age from 67 to 68
Index Age to Longevity After it Reaches 67
Raise Age to 69 then index to Longevity
Modify Cost of Living Adjustments (COLAs)
Index COLAs to “Chained CPI”
Index COLAs to “Chained CPI” and Means-Test Them
Index COLAs to “CPI-E”
Then, the CRFB asks how much more you would like to pay to our poor, destitute federal government:
Increase Taxable Maximum
Subject All Wages to Payroll Tax
Subject 90% of Wages to Payroll Tax
Tax All Wages Above $400,000
Cover Newly-Hired State & Local Workers
Apply the Payroll Tax to “Cafeteria Plans”
Increase Taxation of Benefits
Invest in the Stock Market
Diversify the Trust Fund to Increase Returns
Divert 2% of Payroll Tax to “Carve-Out” Accounts
Allow Contributions into “Add-on” Accounts
Rodger Malcolm Mitchell
Twitter: @rodgermitchell Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
The Sole Purpose of Government Is to Improve and Protect the Lives of the People.