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SS trust fund would remain solvent indefinitely with an immediate 2% increase in contributions.


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2018 Jun 4, 4:14pm   5,360 views  18 comments

by Automan Empire   ➕follow (1)   💰tip   ignore  

Born 1967, my cohorts have always considered SS a Ponzi scheme, which would run out of money before our generation was old enough to benefit from it.

Some say it's a conspiracy theory, but it's really the natural result of the Baby Boom generation causing a population bulge. Subsequent generations had fewer children, so as boomers retire there is a smaller workforce paying into SS. At present rates, the Trust Fund will be depleted by 2037, and will only be able to pay 75% of expected benefits from YOY input. The difference will have to be made up by draconian taxes or severe cuts in benefits.

HOWEVER, what always seems to be lacking in this discussion is, this outcome is EVITABLE. As in, there are alternatives, and most are cheaper the sooner they are implemented. If combined employer/employee contributions were immediately increased by 2%, the fund would remain solvent indefinitely (75+ year projection.)

Why doesn't this happen, or even seem to be discussed? Probably our system of working for next quarter's numbers and looking no farther. Nobody wants to be the politician that proposes raising taxes for benefits decades away.

Discuss?

Ninja edit: Source https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html

Comments 1 - 18 of 18        Search these comments

1   Shaman   2018 Jun 4, 4:19pm  

They raise it every year! Or the cap anyway. Every year it takes longer to reach the point at which it stops being taken from my paycheck. I think it’s up around $119k right now.
Also what is 2% a percentage of? Wages? Or the amount currently being taken from wages? The first would hurt much more than the second.

How about means testing? Plenty of millionaires and billionaires don’t really need to depend on the largesse of the working class. Surely we could make up 2% that way!
2   MisterLefty   2018 Jun 4, 4:23pm  

The argument that the money is gone and spent and so paying off the obligation is therefore unnecessary might come as a surprise to bond holders around the world.
3   Strategist   2018 Jun 4, 4:48pm  

Fact: The SS system can never go broke because it is a Pay As You Go system. There can be less money for retirees, but it cannot go broke.
4   Ceffer   2018 Jun 4, 4:53pm  

Darn. Does this mean the MillXYers are going to get some SS money after all?
5   Booger   2018 Jun 4, 4:55pm  

Raise the age you can start to receive benefits. Do this immediately, and don't grandfather in anyone. No tax hike required!
6   Heraclitusstudent   2018 Jun 4, 4:56pm  

Automan Empire says
If combined employer/employee contributions were immediately increased by 2%, the fund would remain solvent indefinitely (75+ year projection.)


Nah, boomers don't want to pay more while they are working. They also don't want to cut benefits. All the fund will be spent on them.
Once boomers go away and your cohort hits retirement, millennials will vote to cut ss payments.
That will take care of it.
7   marcus   2018 Jun 4, 5:23pm  

Automan Empire says
Nobody wants to be the politician that proposes raising taxes for benefits decades away.


Yes, and some wealthy plutocrats fund right wing politicians who say it's a ponzi scheme that can't be sustained, we need to switch to 401ks, etc.

That's all bullshit. They especially want to end the medicare "entitlement."


You're right that it's all nonsense, and kicking the can down the road does exactly make it more possible for them to make their argument. Yes, absolutely, fix it sooner. Does anybody remember Al Gore and his lock box ? He wanted to account for it separately not comingle those funds as they do as just other federal tax revenue. That's what makes unrealistic tax cuts possible.

There is a reason they play these games and it's not hard to figure out. If they can just underfund the SS trust fund long enough, they can kill it. Going on at the state level even worse in some cases. The amazing thing is they easily get the right wing echo chamber going right along with them.
8   marcus   2018 Jun 4, 5:26pm  

Booger says
Raise the age you can start to receive benefits. Do this immediately, and don't grandfather in anyone. No tax hike required!


Yeah, screw those old people. It's not like they've been working hard and paying in the past 45 years.
9   MoneySheep   2018 Jun 4, 6:43pm  

SS benefits not necessarily have to come out of SS Trust Fund? As we have learned from financial crisis, Congress can always borrow to pay SS benefits. Dont need to raise tax now, just raise tax from future generation.
10   MisdemeanorRebel   2018 Jun 4, 6:53pm  

Why cap the contributions?
11   Booger   2018 Jun 4, 7:15pm  

marcus says
Yeah, screw those old people. It's not like they've been working hard and paying in the past 45 years.
.

Social Security benefits needs to have been indexed to life span extension
12   marcus   2018 Jun 4, 7:21pm  

Booger says
Social Security benefits needs to have been indexed to life span extension


in my opinion that's bullshit. If we can spend trillions on attempted nation building in Iraq, while simultaneously giving the rich tax cuts we can't afford funded in part by surplus funds coming in to the SS TF, then we can pay for those extended benefit out of the trust fund.

Besides, shouldn't the ever increasing cap on income that is taxed by payroll taxes essentially be covering the extended life span ? What do you think it's covering ? Is it covering the fact that payroll taxes are spent as if they are regular income taxes ? To be used to claim we can afford tax cuts that we can't ?
13   Booger   2018 Jun 4, 7:55pm  

marcus says
Besides, shouldn't the ever increasing cap on income that is taxed by payroll taxes essentially be covering the extended life span ? What do you think it's covering ?
.

I suspect that it is partially covering the occasional Social Security increases due to inflation.
14   Strategist   2018 Jun 4, 7:56pm  

marcus says
Booger says
Social Security benefits needs to have been indexed to life span extension


in my opinion that's bullshit. If we can spend trillions on attempted nation building in Iraq, while simultaneously giving the rich tax cuts we can't afford funded in part by surplus funds coming in to the SS TF, then we can pay for those extended benefit out of the trust fund.

Besides, shouldn't the ever increasing cap on income that is taxed by payroll taxes essentially be covering the extended life span ? What do you think it's covering ? Is it covering the fact that payroll taxes are spent as if they are regular income taxes ? To be used to claim we can afford tax cuts that we can't ?


So easy for someone who will get 5 times in pension than the rest of us get in SS, to give advise on how to fix SS. One way to fix SS is to eliminate the ridiculous pensions government employees get, and put the difference in the SS fund.
There is no logical reason why government employees deserve more than the average SS recipient. None. None at all. It's a fucking rip off.
15   Strategist   2018 Jun 4, 8:24pm  

APOCALYPSEFUCKisShostikovitch says
Communist ravings.

AMERICA! was invented to bomb humanity into rubble for the profit of, at most, four guys who have been ordained to fight it out for control of every monetizable asset in the universe and finally reveal the winner who will strangle GOD! with his bare hands exactly as the Founding Fathers intended.


Those four guys must have been the Founding Fathers. Sadly, they are dead. I say we reactivate and revise their intentions. Lets enslave all of humanity for the benefit of all Patnetters.
Patrick will need to be King. This is his creation.
AF, you are best suited to be the military general and executioner. No one wants to fuck with you.
Strategist is best suited to raise taxes on the slaves, and throw parties. There is no better capitalist asshole on the planet.
Who do we appoint for the rest of the important jobs?
16   MrMagic   2018 Jun 4, 10:13pm  

Quigley says
How about means testing? Plenty of millionaires and billionaires don’t really need to depend on the largesse of the working class. Surely we could make up 2% that way!


Means testing? Like taking money away from SAVERS (those evil millionaires) who actually SAVED their money and planned ahead for retirement, and give it to Joe 6 pack, who blew all his money on beer and hookers, and didn't save squat?

Sounds Socialist to me.
17   MisterLefty   2018 Jun 5, 3:48am  

Sniper says
Means testing?
If they are going to institute means testing, then the contributions of those so excluded from receiving SS should be returned with interest.
18   marcus   2018 Jun 5, 6:13am  

Strategist says
So easy for someone who will get 5 times in pension than the rest of us get in SS


SO easy for you to talk out your ass. I didn't start teaching until I was middle aged. SO I won't be getting much more than you.

Strategist says
One way to fix SS is to eliminate the ridiculous pensions government employees get, and put the difference in the SS fund.


You have no idea how stupid and assholish this sounds. Sure someone was promised a pension, and they paid in to it instead of social security,their whole life, but just "eliminate" it. I really wonder where America is going. So many hateful ignorant pricks. That's why Trump was elected. So sad.

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