Posted on 06/15/2024 8:54:57 PM PDT by SeekAndFind
In a completely predictable turn of events, one of the Ponzi schemes that the federal government has been running is set to collapse in just a few short years. Here’s this, from an item out at FOX Business today:
The head actuaries for Social Security and Medicare testified before a House panel on Thursday about the two safety net programs’ looming financial woes that could see key trust funds depleted in roughly a decade, which would leave beneficiaries facing a benefit cut if the funding gap isn’t resolved by Congress.
Trustees for Social Security and Medicare recently released a report that looked at the health of the key trust funds that found that key trust funds are on pace to be depleted in roughly a decade. When that happens, those programs would only be able to pay out what they receive through incoming payroll tax receipts, meaning benefits would be automatically cut under current law.
Here are some of the specifics:
Social Security’s Old-Age and Survivors Insurance (OASI) trust fund is expected to be depleted in 2033, when just 79% of scheduled benefits would be payable. When merged with the Disability Insurance (DI) fund, the date shifts to 2035 with 83% of benefits payable. Based on the $1,907 average monthly benefit as of January 2024, that 17% cut would leave beneficiaries with a $1,582 check — $325 less per month and $3,900 less per year.
So not only will there be cuts—a guarantee if we simply don’t do anything different—but you’ll likely be taxed on it. In some cases, social security benefits are already taxed,
(Excerpt) Read more at americanthinker.com ...
It already is. I sat down and figured out the SS payments for two people, one who made the SS max income all of his career and a second who made exactly half of that so he paid one half the tax. When it came time to collect, the lower income person got three quarters of the payments of the higher tax payer. If the higher number served as the baseline, than means the lower paid one got a 50% bonus over the proportional payment.
I had planned to find the payment level which exactly matched the average tax and benefit and use that as the baseline to calculate all of the other tax/payment rates relative to it, but I could not figure out how to automate the entry of payroll data into the SS website so I only did two by hand.
You're absolutely correct. I think they'll fund it with a VAT (value added tax). A national sales tax in use throughout most western countries. Everyone will hate it, but they'll do it.
2. All benefits to illegals need to stop with no exceptions.
3. Congress needs to pay back to social security funds that were diverted to non-social security programs.
Social Security cuts are very credible using the following—
First, if a certain number of dollars need to cut, that reduction won’t be uniformly distributed. Lower end recipients will get their full check. Higher end, less so.
You can do this explicitly, or more likely by adjusting the annual COLA differently by check size. Not net worth means testing. Rather, bigger checks get less COLA.
Stop supporting illegals and foreign countries that hate us!
Exactly right.
“ Everyone knows that the Politicians in DC have more loyalty to Ukraine than US Retirees.”
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Well, the US government is ALREADY PAYING UKRAINIAN RETIREES … OUT OF “GENERAL” TAX PAYER DOLLARS. But paying American social security retirees out of “general” tax funds (instead of out of “trust”funds) is apparently AGAINST THE LAW. So your point has a lot of validity.
And ZEEPERS rejoice at this prioritization.
Defense...
Do you really think that will fix anything? The real issue is inflation. Our fiscal insanity at the wasteful Fed Gov is destroying the entire nation. It is going to get much worse since BRICS has had so many nations wanting membership. And Saudi Arabia has ceased renewing US Dollar as the oil exchange currency.
Still More ☭#Dem_Insanity!
Truth!
They’ll print it up before pissing off millions of voters.
Don’t be concerned - it is only Social Security that is intentionally going to run out of money.
The free stuff for illegals and slackers will continue to be fully funded with no upper limits.
OF COURSE its going to collapse in a decade.
Know how I know? I’m 54.
Therefore it is a metaphysical certainty to go bye bye just as I would collect my first nickel from it after having paid into it my whole life. Pretty much all Gen Xers like me knew this would happen and we all said so back in the early 90s. This is no surprise.
I think they should revolt Reagan’s income tax on social security. That way the cut won’t hurt as much. I will finally get social security at age 70 in 2039 if it’s still around. I always thought waiting until 70 was best.
everyone’s social security savings should be placed in a special personal account that would not be available for withdrawal until 63 at the earliest.
that account would then receive all standard contributions going forward.
also, the account should be either invested in long term CDs to receive at least 3%... or invested in the S&P index fund.
and upon death, the remains of the account would go to the person’s estate.
analysis of such shows such accounts being sustainable for the average person’s contribution from the time they’re 18 to retirement.
Congress needs to pay back to social security funds that were diverted to non-social security programs..
That will never happen...
But I agree with points 1&2 wholeheartedly.
100% of the Social Security Trust Fund has been loaned to the general fund and was spent.
There is no Trust Fund. Just a bunch of IOU’s.
Total US Government Revenues in the 2023 fiscal year were $4.44 Trillion from all sources. This includes Social Security and Medicare Taxes.
If you subtract the Social Security and Medicare Taxes, the remaining General Fund Revenue is $2.9348 Trillion.
Total General Fund Revenue of $2.9348 Trillion divided by our $35.6 Trillion debt is 8.5%. That means that if interest on the National Debt reaches 8.5%, it takes 100% of our General Fund Revenue just to pay interest with ZERO left to run the government.
Many of you remember rates of 15% to 20% in the early 1980’s thanks to Carter.
We are so far beyond bankrupt that collapse is inevitable no matter who wins the election.
“ Total General Fund Revenue of $2.9348 Trillion divided by our $35.6 Trillion debt is 8.5%. That means that if interest on the National Debt reaches 8.5%, it takes 100% of our General Fund Revenue just to pay interest with ZERO left to run the government.
Many of you remember rates of 15% to 20% in the early 1980’s thanks to Carter.”
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Bears repeating… and repeating often.
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