Social Security myths

[pberq]

http://www.aarpmagazine.org/money/Articles/myths_and_truths_about_social_security.html

<snip>
Myth: Social Security is broke.

Those who argue that Social Security needs a dramatic reorganization begin with this premise: the system is failing; Social Security isn't sustainable in its present form. From there, the argument goes that what's best for the country is some form of privatization. With privatization, a portion of the Social Security taxes now paid would be diverted into an account that each taxpayer would control themselves. (Under the current system, all surplus Social Security revenue is invested in special U.S. Treasury bonds.)

So, is Social Security about to go bust? Not by a long shot. In fact, Social Security is in better shape today than at any other time since it was enacted in 1935. That's because of some judicious adjustments suggested in 1983 by a commission set up by Ronald Reagan and headed up by Alan Greenspan. Since then, trust fund reserves have gone from nearly zero to $1.6 trillion.

Social Security trustees acknowledge that by 2028 the system will need to start redeeming the bonds in its reserve, but they calculate that the fund will be able to meet 100 percent of its obligations until 2042. By that date, the principal will be exhausted, but the system will still bring in enough revenue from taxes to pay nearly 75 percent of benefit amounts. (An even rosier Congressional Budget Office report says the system will be able to pay full benefits until 2052, and 80 percent after that.)

(More. . .)

[pberq]

1. Howard Dean's statement on SS

http://www.democrats.org/chat/20050311dean.html

The Republicans' risky plan to privatize Social Security will cut guaranteed benefits, require borrowing trillions of dollars from foreign countries like China and Japan, and turn our Social Security money over the same type of people that gave us the financial scandals of Enron, Global Crossing, and Tyco.

The American people have figured out that this will not benefit them - only 1/3 of them support what the President is trying to do.

The message is simple - you can't trust Republicans with your money. We need to stay strong on that message.

[pberq]

2. Social Security Trust Fund squandered by Bush Administration

http://straighttalk.ourfuture.org/retirement/

When the President took office, the government was projected to save every dollar of the Social Security surplus. But under his $1 trillion tax break plan, the Bush Administration would spend every penny of the Social Security Trust Fund over the next 10 years, just as the Baby Boomers are about to retire.
(Source: "New CBO Report Puts Deficit At $1.8 Trillion...," Center on Budget and Policy Priorities, March 10, 2002.)