[kabar]

The 2% reduction in the SS tax just reduces the IOUs faster in the SSTF, which represents an unfunded liability. The SSTF ($2.6 trillion) is included in our $15.6 trillion national debt and held under "Intragovernmental Holdings." SS is a pay as you go system and has been in the red since 2010.

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, CBO’s deficit projections for the trust funds do not include that. But CBO’s figures predict that the "payroll tax holiday" will cost the government’s 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 government’s overall finances.

[Son House]

Democrats are using the SS tax, money intended for Seniors, in hopes of economic stimulus, when they had no intent of improving the economy with other real tax cuts or the deficit spending they felt entitled to.

[rodguy911]

Thanks for clarifying all that.Either way its a sneaky way to destroy the country even faster than they were before.Unbelievable what these clowns will do all in the name of socialism.....

Poor Dandy Candy on CNN yet another Wisconsonian,Ron Kind, is tearing her a new one which is quite a job since she already has a huge one.

[Alas Babylon!]

Every time some DNC/DBM talking head says “Ryan tried to cut/gut Medicare”, we need to counter with the truth, which is:

Ryan was the only one trying to save Medicare.

Once again, say to people, “I really like Paul Ryan because he was the only one in Washington trying to SAVE medicare.”

“They didn’t accept his plan but instead kicked the can down the road, when rescuing it will only be that much harder and that much more severe!”

Ask people (especially middle-aged to younger) if they really think Social Security and Medicare will be there for their old age?

Most will say “NO!”

Ask why not? And then ask them wouldn’t it make sense to try to fix it NOW, rather than just let it EXPLODE later?

Do the deomcrats even have a PLAN to fix it? No.