Jagadeesh Gokhale of the right wing Cato Institute makes what is, for him, a very reasonable plea -- "simply wipe out the [Social Security] Trust Funds entirely." Who could object to that?
Past excess payroll taxes have been spebt on other government programs writes the author. Because the interest is debt, not cash, the entire trust fund is debt. There are 2 perspectives recognized by the government (including the Social Security Administration) - the "trust fund perspective" and the "budget perspective." Fron the trust fund perspective, Social Security has a "real" surplus, because the government has "promised" to pay benefits. Fron the "budget perspective," the trust fund is unfunded, and must raise new money when the trust fund is tapped (as if the fund did not exist). The budget perspective is a broader, more objective assessmebnt of the trust fund's status. For example, from the trust perspective, Part D is "fully fuynded." Don Levit
2 comments:
Past excess payroll taxes have been spebt on other government programs writes the author.
Because the interest is debt, not cash, the entire trust fund is debt.
There are 2 perspectives recognized by the government (including the Social Security Administration) - the "trust fund perspective" and the "budget perspective."
Fron the trust fund perspective, Social Security has a "real" surplus, because the government has "promised" to pay benefits.
Fron the "budget perspective," the trust fund is unfunded, and must raise new money when the trust fund is tapped (as if the fund did not exist).
The budget perspective is a broader, more objective assessmebnt of the trust fund's status.
For example, from the trust perspective, Part D is "fully fuynded."
Don Levit
All things remaining equal, eventually he'll get his wish.
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