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View Diary: Making people suffer is bad, whether in shutdown or via entitlement 'cuts' (150 comments)

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  •  Yes, America needs Social Security reform! (7+ / 0-)

    1) Remove the cap on the Social Security Tax. Make it apply to all income, including capital gains. This will improve the Fund’s liquidity and lower the deficit.

    2) Rebuild the Social Security Fund. The national debt is approaching $ 17 trillion. Approximately $ 2.7 trillion of that is to the Fund, which for decades has been raided to pay for roads and whatnot. The US debt to the Social Security Fund is greater than the sum of what is owed China (ca. $ 2.3 trillion) and Japan ($ 2.1 trillion). Right now I believe the Fund is empty!

    3) Prioritize the debt to the Social Security Fund. Congress should enact a law that gives this debt higher priority than other national debt. The economic security of people who paid into Social Security should have the highest priority!

    •  Correction (1+ / 0-)

      That should read: China (ca. $ 1.3 trillion) and Japan ($ 1.1 trillion).

      “The meaning of life is to find it.”

      by ArcticStones on Fri Oct 18, 2013 at 08:37:03 AM PDT

      [ Parent ]

    •  More on this idiocy... (1+ / 0-)
      Recommended by:

      Free markets would be a great idea, if markets were actually free.

      by dweb8231 on Fri Oct 18, 2013 at 08:37:26 AM PDT

      [ Parent ]

    •  "This will improve the Fund’s liquidity (0+ / 0-)

      and lower the deficit."

      This makes it sound like the Fund has a deficit.  It's allowed itself to be borrowed from, but that doesn't mean it has a deficit.  At present, it has no deficit (and never has had, I believe).

      The opposite of pro is con. So what's the opposite of progress?

      by DSPS owl on Fri Oct 18, 2013 at 12:32:04 PM PDT

      [ Parent ]

    •  The Trust Fund (0+ / 0-)

      is not empty, nor should it be built up further. It was only built up to finance the baby boomer demographic bulge. It was always intended to be mostly spent down over the next 20-30 years, then revert to being a pay-as-you-go system.

      Nor was it raided. Issuing government bonds was the only thing that could realistically be done with it. What alternative was there - put it in the stock market? Lend it to China? Put it in cash in a gigantic safe for 30 years?

      The Trust Fund doesn't need to be given higher priority over other government debt. The United States pays all its debts, period. All we need to do is maintain our commitment to providing adequate benefits to retirees, now and in the future, and to having a progressive tax system with adequate revenue.

      About the Social Security Trust Fund

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