Here let me simplify the question for them:
How much of the current $16 Trillion debt of the United States is due to Social Security???
None of it. It’s the only program that is still in the black despite continual raids on it by the government spending of DC politicians .
What if a politician actually told the truth and said SS needs to be fixed and cuts have to be made? We have to raise the age and lower the benefits as well as stop raiding it.
What if everything we know about politics is wrong and it isn’t the turd rail. When Romney was talking about cutting Medicare and SS he was winning, when he became a jellyfish he lost because nobody had a reason to vote for him.
Pray for America
About $2.7 trillion, which is the balance in the SSTF. Of the $16.4 trillion national debt, about $11.4 trillion is publicly held, i.e., is owed to foreign and domestic investors and the Federal Reserve, which buys up treasuries in order to drag down interest rates through quantitative easing and $5 trillion to the Social Security Trust Fund and federal pension systems under "Intragovernmental Holdings."
None of it. Its the only program that is still in the black despite continual raids on it by the government spending of DC politicians .
Not so. SS is a pay as you go program, i.e., today's workers pay for today's retirees, has been running in the red since 2010 and will continue to do so permanently.
Source: CBO Combined OASDI Trust Funds; January 2011 Baseline 26 Jan 2011. Note: See Primary Surplus line (which is negative, indicating a deficit)
Matters are even worse than this chart shows. In December, Congress passed a Social Security tax reduction. Workers are temporarily paying 2 percentage points less, from 6.2 percent to 4.2 percent, in Social Security payroll taxes this calendar year. Since the government is making up the shortfall out of general revenues, CBOs deficit projections for the trust funds do not include that. But CBOs figures predict that the payroll tax holiday will cost the governments general fund $85 billion in this fiscal year and $29 billion in fiscal year 2012 (which starts Oct.1, 2011.) Since every dollar of that will have to be borrowed, the combined effect of the tax holiday and the annual deficits will amount to a $130 billion addition to the federal deficit in the current fiscal year, and $59 billion in fiscal 2012.
Social Security has passed a tipping point. For years it generated more revenue than it consumed, holding down the overall federal deficit and allowing Congress to spend more freely for other things. But those days are gone. Rather than lessening the federal deficit, Social Security has at last as long predicted become a drag on the governments overall finances.
As recently as October, CBO was projecting that it would be 2016 before outlays regularly exceed revenues. But Social Securitys fiscal troubles are more severe than was thought, and the latest projections show the permanent deficits started several years ahead of earlier predictions.
Dont be confused by the fact that the trust funds are projected to continue growing for several more years. Thats because Treasury must still credit interest payments to the funds on the borrowings from earlier years. But unless taxes are increased or other spending is cut severely, the government will have to borrow from the public to pay the interest that it owes to the trust funds.
And dont be misled by those who say the system can pay full benefits until about 2037 without making any changes to the law. Thats true, but does not change the fact that Social Security taxes no longer cover those benefits. The government is now borrowing money to pay them, and will do so every year for the foreseeable future. And keep in mind, if nothing is done, when those trust funds are exhausted, benefits would have to be cut by 22 percent in 2037, and more each year after that, according to the most recent report of the systems trustees. By 2084, the system will generate only enough revenue to pay for 75 percent of promised benefit levels.