Danger – beware ‼️‼️‼️

Three principles should be observed in legislation on this subject. First, the system adopted, except for the money necessary to initiate it, should be self-sustaining in the sense that funds for the payment of insurance benefits should not come from the proceeds of general taxation. Second, excepting in old-age insurance, actual management should be left to the States subject to standards established by the Federal Government. Third, sound financial management of the funds and the reserves, and protection of the credit structure of the Nation should be assured by retaining Federal control over all funds through trustees in the Treasury of the United States.

FDR January 1935 on proposed Social Security

At least two Republican politicians have suggested that instead of financing Social Security through dedicated funding – that is worker and employer payroll taxes – the funding be part of the federal budget subject to the machinations of every Congress. Think about what that could mean.

The financial situation facing Social Security could easily have been avoided with minor and gradual adjustments to it’s dedicated taxes over several years. Congress has failed to do even that. Imagine if annual funding as part of the total federal budget process determined the solvency of Social Security.

Yes, the cost of Social Security spending is on automatic, those costs will increase based on factors beyond the control of Congress. That’s why the Trustees urge adjustments year after year.

2 comments

  1. Those who think funding SS by getting rid of the FICA tax and just raising income tax to cover everything SS provides are CRAZY. Income tax revenue would need to be almost double what it is today. This would be a windfall for business, as taxpayers would now have to cover 100% of the cost of SS benefits. With record business profits, now is the time to adjust FICA tax rates to fix the coming shortage in 2034. Nothing will happen, it is all just talk, like always, politicians are some of the dumbest humans on the planet.

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  2. When those in control are more focused on filling their pockets and seeking funds for their re-election, funding SS is low on their priority list. SS recipients drain the fund while those who work generate taxable revenue.

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