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View Diary: Newsweek Promotes A $2.6 Trillion Social Security Fraud (63 comments)

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  •  It's quite simple... (14+ / 0-)

    Go to the OMB historical budget data Table 1.1.

    Add up the difference between the Off-Budget (i.e. Social Security) revenues and outlays since the 1980s, i.e the surpluses, and you get $2.6 trillion. You can also see that those surpluses were used to reduce the reported federal operating, the On Budget, deficits. Had the surpluses been invested in bona fide Treasuries, Off Budget surplus could not have reduced the On Budget deficit.

    The numbers debunk Samuelson's fraudulent thesis, which is that the surplus was not funded by employees and employers to fund retirement benefits.

    In 2010, $635 billion  in social security revenues were used to pay $557 billion in outlays. That's 87%, not 91%. The differrence points to another accounting trick; the employer share of FICA for Federal employees is treated as "revenues," but it is never paid by the government.

    I also forgot to mention that the authority cited by Samuelson, Charles Blahous, led Bush's social security privatization effort.

    •  And outstanding explanation of one of our most (0+ / 0-)

      important issue of the day.

      We should promote this diary to get the maximum exposure and duration.

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Mon Mar 07, 2011 at 05:39:15 PM PST

      [ Parent ]

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