Sep 15, 2011

No Social Security Changes To Be Proposed By President

From Reuters:
U.S. President Barack Obama will not recommend changes to the government's Social Security retirement program in his deficits proposals to Congress next week, the White House said on Thursday.
"The president's recommendation for deficit reduction will not include any changes to Social Security because, as the president has consistently said, he does not believe that Social Security is a driver of our near and medium term deficits," White House spokeswoman Amy Brundage said.


Anonymous said...

Is this a joke? Social Security always was deficit neutral in pure terms because it was self-financing before Obama started messing with the FICA payroll tax rate. Now it is deficit-negative, meaning it is adding to the deficit because he reduced the FICA rate and wants to reduce it further, while replacing the money from general revenues. And now he says Social SEcurity is off the table in addressing the deficit? Is this guy completely out to lunch, or what?

Anonymous said...

Guess you don't play much poker.

Anonymous said...

"Guess you don't play much poker."

Oh so this is some master ploy to fool the Republicans? So him running all over the country telling anyone that will listen to pass his "jobs" bill, that continues the FICA tax cut is part of his poker hand?

Barry needs to go in 2012.

Don Levit said...

Anon 11:35
I share your concern about replacing the monies with general revenues.
But, this is how the trust fund is funded - with pay-as-you-go current revenues.
Since 2010, the cash outgo exceeded the cash income.
What about the trust fund, you say?
Certainly with $2.6 trillion of surplus, the interest can handle the $40 billion shortfall.
Not exactly, for this "interest" is not something that can be liquidated, like interest in an insurer's pre-funded reserve trust fund.
This "interest" was loaned to the Treasury over the years, along with the principal, in return for an implicit promise to repay.
The law of economics says that the principal and interest cannot be in the Treasury (and spent) and in the trust fund at the same time.
This SS trust fund "interest" can be tapped only by issuing new monies, revenues from the Treasury's general fund - just like we finance all government expenses, with or without a trust fund - AS IF THE TRUST FUND DID NOT EXIST!
Don Levit