Social Security is not going broke
canada goose black friday sale Which federal program took in more than it spent last canada goose outlet official year, added $95 billion to its surplus and lifted 20 million Americans of all ages out of poverty? canada goose black friday sale
Why, Social Security, of course, which ended 2011 with a $2.7 trillion surplus.
Canada Goose online That surplus canada goose outlet toronto factory is almost twice the $1.4 trillion collected canada goose outlet website legit in personal and corporate income taxes last year. And it is canada goose outlet houston projected to go on growing until 2021, the year the youngest Baby Boomers turn 67 and qualify for full old age benefits. Canada Goose online
So why all the talk about Social Security broke? That theme filled the news after release of the canada goose jacket outlet toronto latest annual report of the Federal Old Age and Survivors Insurance and Federal Disability Insurance Trust Funds, as Social Security is formally called.
The reason canada goose factory outlet vancouver is that the people who want to kill Social Security have for years worked hard to persuade the young that the Social Security taxes they pay to canada goose coats uk support today gray hairs will do nothing for them when their own hair turns gray.
canada goose store That narrative has become the conventional wisdom because it is easily reduced to a headline or sound bite. The facts, which require more nuance and detail, show that, with a few fixes, Social Security can be safe for as long as we want. canada goose store
buy canada goose jacket cheap Let look at how Social Security taxes have grown in the last half century a little known tale of tax burdens shifted off canada goose outlet in chicago the rich and onto workers. From 1961 canada goose parka uk through 2011, the year covered in the canada goose factory outlet toronto location last Social Security report, Social Security taxes exploded from 3.1 percent of Gross Domestic Product to 5.5 percent. buy canada goose jacket cheap
Income taxes went the other way. The personal income tax slipped from 7.8 percent of the economy to 7.3 percent, with most of the decline enjoyed by people in the top 1 percent of incomes. canada goose outlet uk sale The big drop was in the corporate income tax, which fell from 4 percent of the economy to 1.2 percent. Notice that the corporate income tax fell by 2.8 percentage points, an amount almost entirely offset by a 2.4 percentage point increase in Social Security taxes.
The effect has been to ease the taxes of the wealthy, while burdening the vast majority of workers. Considering how highly ownership of stocks is concentrated, the benefit of those lower corporate taxes went overwhelmingly to the top 1 percent and, especially, the top 1 percent of the top 1 percent. Considering that the Social Security tax is capped, most of the burden of the increased payroll tax went to the bottom 90 percent.
Canada Goose Outlet Now let look at how that $2.7 trillion Social Security surplus arose. In 1983, President Ronald Reagan sponsored an increase in Social Security taxes, changing http://www.canadagoosesalesus.com the program from pay as you go to collecting much more taxes than it paid in benefits. The idea was to have the Boomers prepay part of their old age benefits. The extra tax was supposed to pay off the federal debt and canada goose outlet winnipeg then be invested in federal bonds. Instead, Reagan ran huge deficits, violating his 1980 promise to balance the federal budget within three years of taking office. Canada Goose Outlet
canada goose In my view, building the Social Security surplus has had two major effects. canada goose
Canada Goose Parka One effect was to finance tax cuts for those at the top, whose highest tax rate fell during the Reagan years from 70 percent to 28 percent, and for corporations, whose rate canada goose outlet store uk fell canada goose outlet online store review from 50 percent of profits canada goose outlet niagara falls to 35 percent. Those with less subsidized those canada goose outlet online with more. Canada Goose Parka
canada goose deals The other effect was a huge increase in consumer debt, as Americans saddled with higher Social Security taxes took out loans to cover other needs. Stagnant wages played canada goose outlet woodbury a role, but the $2.7 trillion Social Security surplus is canada goose outlet london also a factor in a $1.5 trillion increase in consumer debt since 1984. canada goose deals
Canada Goose sale It is no wonder consumers have gone into debt. Paying a tax in advance is expensive. Indeed, the first lesson in tax planning is that a tax deferred for buy canada goose uk 30 years is effectively a tax avoided, provided the money is invested wisely. The reverse is also true. A dollar of tax paid in 1984 cost $2.20 in today dollars, and that before counting the interest that could have been earned. Canada Goose sale
Canada Goose Jackets With the coming bulge in retirees, Social Security will start to pay out more than it takes in 2021, according to projections in the latest annual report. Under current law the program would be able to pay only about three quarters of promised benefits starting in 2033. But that scenario canada goose outlet sale can easily be avoided through a combination of four policy changes that would ensure full benefits continue to canada goose outlet near me be paid, though I fear Congress will continue to do nothing. Canada Goose Jackets
One would be restoring the Reagan standard that 90 percent of wages are covered by the Social Security tax, which now applies to only 83 percent of wages. If we went back canada goose outlet jackets to the Reagan standard, the Social Security tax would apply to close to $200,000 of wages this year instead of $110,100.
canadian goose jacket Two would be raising the Social Security tax rate by two percentage points. That tax hike could be smaller or even avoided if, three, we reignited the growth in wages. Median wages have canada goose outlet black friday sale fallen in 2010 back to the level of 1999. And, four, it would help just as much if we created millions more jobs, which since 2000 have grown at only a canada goose outlet florida fifth the rate of population increases. canadian goose jacket
Under current canada goose outlet new york tax rules, the Social Security shortfall for the next 75 years is $8.6 trillion.
But there is a much bigger problem that needs our attention. If we continue national security spending at current levels, with no future increases, the total cost would canada goose womens outlet be $63 trillion, based on the figures in President Barack Obama latest budget. Unlike spending on Social Security, much of the national security spending goes overseas. And that makes us worse off.
buy canada goose jacket It is certainly true that Social Security and Medicare generate huge surpluses. Those surpluses have be forcibly invested in War Bonds er Treasury Bonds. The money itself has been lavished on wars and history most massive military machine. buy canada goose jacket
To even think about Social Security going is to apply private business thinking to the program, thinking of it like a private insurance company. If a private insurance company sold policies to the public, was the largest land owner in all of North America, paid zero rent on a staggering amount of real estate, just like the Queen of canada goose outlet in usa England, would we permit it to decide to not make good on its policies? Would we not force it to disgorge the assets to meet its canada goose outlet obligations? Social Security and Medicare are far, far from
cheap Canada Goose Put all Federal lands and property into the Social Security canada goose outlet in canada Trust Fund and mandate market rate rents for Government usage of those assets, just like everyone else pays. Then there would be a huge surplus and the Federal Government might make better decisions about spending, as a side benefit. cheap Canada Goose
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My congratulations to Mr. Johnston. It has irritated me for years to hear our elected canada goose outlet in new york officials speak about the we have with spending as if it were some kind of drag on our economy that will inevitably lead us into the depths of bankruptcy. I known for years that this sort of talk was drivel, but I have neither the resources nor the intellectual clout to explain it as cogently as he.
Why don we fix this pseudo problem by imposing Social Security taxes on all of the income earned by the wealthy? I rarely hear people of moderate means grousing about the money they pay into the Social Security system, so why should the rich have any greater problem with it?
canada goose coats on sale It quite likely that this simple would ensure the security of the Social Security system for meny years to come. canada goose coats on sale
Posted by StanBonk Report as abusive
canada goose coats This canada goose outlet store toronto year the maximum wage subject to SS tax is $110,100 so if you make, for example, $220,200 then only half of your pay is subject to the tax. If you make $1,101,000 only a tenth is canada goose coats.