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View Diary: Sen. Chuck Schumer gets support of Harry Reid, White House on taxes (83 comments)

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  •  SS has never contributed 1 nickle to the deficit (5+ / 0-)

    And, the very thought of putting it on the table calls to mind pitchforks and street marches.

    Put the damn defense budget on the table first. I'm sick and tired of all the talk about protecting Americans from foreign terrorists when the terrorists in our government are willing to see sick children, the disabled, and the elderly die in the gutters of American cities.

    Eliminate tax breaks that stimulate the offshoring of jobs.

    by RJDixon74135 on Thu Oct 11, 2012 at 03:11:25 PM PDT

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    •  The SS trust fund contributes to the DEBT. (2+ / 0-)
      Recommended by:
      phonegery, RJDixon74135

      The money congress has taken from SS and spent (through the unified budget) has been replaced with securities that are, along with interest on those securities, included in the federal debt - currently about $2.7 trillion.  And that doesn't include the FICA tax cuts Obama has enacted over the past two years, which he said would be made up through the general fund, which is also included in the debt.  All together, SS (all trust funds) represents about 17% of the federal debt.

      Cutting benefits - however they do it, by raising the retirement age, or change the way cost of living increases are figured, or some other way they haven't dreamed up yet - is, in effect, reneging on either the securitized debt in the fund or the promise to repay the FICA tax cuts through the general fund.  But you don't hear anyone in congress suggesting they renege on any other securities sold to finance the federal debt.  U.S. individuals and institutions represent about 42% of the federal debt.

      *Percentages from Board of Governors of the Federal Reserve System, updated March 12, 2012

      "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

      by SueDe on Thu Oct 11, 2012 at 03:53:16 PM PDT

      [ Parent ]

      •  What individuals and what institutions (1+ / 0-)
        Recommended by:
        SueDe

        are holding that 42%?  And what is the form their holdings are in?  Savings bonds?

         U.S. individuals and institutions represent about 42% of the federal debt.

        Thanks for this informative post.  The information is out there, but it takes time and ability to ferret out the the most meaningful numbers.

        Time is a long river.

        by phonegery on Thu Oct 11, 2012 at 05:24:00 PM PDT

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        •  The holdings in the debt are mostly in (0+ / 0-)

          treasury bonds; congress is the only holder of SS trust securities (they are not traded on the open market like other treasury securities).

          Holders of the 42% of the treasury debt that I referred to are civil service pension funds, military pension funds, state employee pension funds, large private employer pensions funds, union pension funds, the Federal Reserve, various millionaire and billionaire trusts and estates, large corporations and selected currency traders around the globe who are invited to participate in treasury auctions.

          Individuals can purchase and hold Bills, Notes, Bonds, Treasury Inflation-Protected Securities (TIPS), and savings bonds either through a securities trader or an on-line program called Treasury Direct.

          "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

          by SueDe on Fri Oct 12, 2012 at 09:06:25 AM PDT

          [ Parent ]

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