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View Diary: We've got your $2.6T, and we're not giving it back (45 comments)

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  •  Except DI is cashing in its surplus. (1+ / 0-)
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    And has been since 2005. Those recipients ought to be pretty happy that it built up a surplus that hit $225 billion at its peak and now is being drawn down.

    As Calamity Jane pointed out NOTHING has been stolen YET. And we are in year six of honoring our debt to the Disability Insurance Trust Fund this year to the tune of some $30 billion.

    That is so far the 1983 deal is working exactly as designed and unless we let them screw us out of the OAS piece will still continue to work as planned, after all 2036 marks the start of the downhill slope for the Boomer demographic cohort. A 1983 fix that was "only" good for 53 years seems kind of good to me. And no one thought that the rates would remain unchanged forever. The numbers show that ideally we should boost FICA by 0.3% immediately and devote that to DI, which would put it into 75 year balance, while tweaks to the OAS side can be put off until at least 2026. (Numbers and dates not pulled from thin air, this is based on a spreadsheet using the Trustees Intermediate Cost projection).

    And BTW 1983 Commissioners Ball and Moynihan both open worried about front loading the tax increases into the first ten years precisely to avoid the current scenario. Political considerations aside the increases should have been phased so that the last one, kind of coincidentally would have been triggered in 2011. But then as now there was a big push to "get this behind us" as if they could just remove the issue from the policy table forever. Which doesn't make the 1983 deal a mistake, considering everything they did a bang up job, I mean what other commission ever installed a fix that turned out to be good for more than half a century. On anything.

    Please visit, follow or join our Group: Social Security Defenders

    by Bruce Webb on Sun Jul 24, 2011 at 10:18:56 AM PDT

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