Skip to main content

View Diary: Either Leave Social Insurance Alone Or Pay Us Back Our $ 1 Trillion. (184 comments)

Comment Preferences

  •  it's not stealing - yet (4+ / 0-)

    until they refuse to pay it back. So if they pay it back, with interest, then they use general revenue to pay it back, just like to China, and it doesn't cost any more, nominally,  than it would if they had raised taxes years ago instead of selling IOUs to the SS - other than adjustments for inflation.

    This using of SS funds to pay for general obligations has always been just a way to avoid raising taxes years ago - to avoid an unpleasant political reality. But with the move to unbalance the distribution of wealth, it will turn out that the repayment of SS Bonds/IOUs/whatever will be disproportionally paid for by the middle class, whereas if they had raised taxes twenty, thirty years ago more of the burden would have been on the wealthy, because of the tax rates in place at the time.

    The mantra really should be - SS is it's own separate tax, and maybe raising the cap or slightly extending the retirement age is prudent, but It is not a part of the debit problem, per se. Having borrowed the money years ago and incurred a general obligation is the problem, and it really doesn't matter whether the obligation is to SS or China.

    So, now the bargain is becoming due - someone is going to have to raise taxes, as they should have years ago, or they will NOT honor the SS obligations and cut benefits.

     That will be stealing.

    Without geometry, life is pointless. And blues harmonica players suck.

    by blindcynic on Sat Apr 16, 2011 at 05:31:40 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site