At Tuesday’s Ways and Means Subcommittee on Social Security hearing, Dr. Charles Blahous of the Social Security and Medicare Boards of Trustees testified that Americans owe $24 trillion in unfunded liabilities to those already in the Social Security system.
Congressman Jim Renacci (R-OH), a CPA, asked Blahous what the impact would be on the Social Security trust fund if all unfunded liabilities needed to paid out. Blahous said that they usually highlight the 75-year “open group obligation” which is currently $10.6 trillion, but said the “actual amount of unfunded obligations within the Social Security system is actually substantially higher than that. ” According to Blahous, the reason is that the shortfall does not play out gradually over time. “It’s actually something that is on the books now. There is an excess of benefit obligations over contributions for people who are already in the system. And that’s actually about $24 trillion. And that’s about 4.4% of future wages going forward,” Blahous said
Actually, it’s even worse to that, according to the Social Security Trustees’ 2014 Annual Report to Congress. Tucked way in the back in Table VI.F1 in the appendix we find, “The excess of the present value of cost for past and current participants over the present value of dedicated tax income for past and current participants produces an unfunded obligation for past and current participants of $26.1 trillion.” (But what’s a of couple trillion here or there?)
Asked by Renacci if Social Security taxes this year will be adequate to fund current benefit obligations, Blahous explained that there will be a shortfall of around $80 billion this year alone.
Renacci wanted to know where the money will come from to make up the difference.
“Well, when the payroll taxes fall short of benefit obligations, the difference has to be made with payments from the general fund. Right now they’d be in the form of interest payments from the general fund to the trust fund and a large share of those interest payments would go out the door immediately to pay beneficiaries,” said Blahous. He added that $80 billion would be added to the federal deficit this year as a result of the shortfall.
this is yet another good reason for deportation and only legal immigrants allowed to work; mandating everyone working pays into the system does not work when illegals are paid without being taxed. (and then send the monies home and live off of taxpayers.)
SS should be like it was when it started ,the money taken in was for SS and nothing else ,but Demorats voted to open the account for what ever and put in IOU's when they know they can't or won't pay it back. Also they have opened it up to illegals and those who can't find a job
SS Should not exist !
Income tax should not exist !
The FED should not exist
The money should be as it was before the FED backed by GOLD in fort Knox
So many people buy the lies
Keynesian economics is the kiss of death slow death to any economy that embraces it
Of course SS should not exist, but it does, and it's broke. The Democrats created it and they steal from it, as most of Congress, and ignore it as long as they can remain in power. Why we NEED term-limits & a balanced-budget amendment. Constant deficit spending to buy votes & create a government dependent society.
Most of the Federal Government policies should not exist. Only way to change that is by electing more Conservatives, and expecting them to pass term-limits & a B.B.A., which will be next to impossible. But with Democrats, Socialists & Moderates, it IS impossible.
Many posts blame Congress, what about Obama spending money like its belongs to HIM.. He now wants 4 Billion to help with the Invasion by, hiring Attorneys and judges for Illegals.. How do they rate before we the American people.
And now Guatemala wants 2 Billion to help with their Borders, WHY? They have no borders with mexico, mexico is letting them through as if nothing is happening.. This whole invasion was created by Obama and his administration.. In the meantime, he does not have enough power to get one of our own Marine Andrew Tahmooressi out of Mexico.
Boston Univ Prof of Economics Laurence Kotlikoff estimates there is $200+ Trillion in future unfunded Federal Obligations for VA obligations, military retirements, Agency retirements,SS, Medicare, Medicaid, outstanding bonds, etc.
Not to worry,as the Feds can print an unlimited amount of paper money backed by nothing.
Us working conservatives have always been burden of the lefts crazy radical ideas that waste our tax many. Force the left with the tab. Stop feeding the socialist/communist parasite's or be prepared to pay the rest of your life for/to people who hate you.
For decades only a small fraction of Social Security contributions are used to pay recipients, the bulk is transferred into the general treasury to pay for current expenditures mostly hundreds of billions of dollars in war spending, payments on bonds and T-notes; subsidies to agro-business, bailouts to Wall Street speculative investment banks and other elite economic interests. Over the decades the Treasury robbed several trillions in SS funds, exchanging them for IOUs (never reimbursed) in order to provide a kind of “social insurance” for the military-industrial-Wall Street-police state power elite. If the accumulated payments to SS had remained in a special account instead of being siphoned off to cover the deficits incurred by military spending and overseas wars, SS finance would be in sound condition at least till the end of the 21st century.
More money gone.
What is money ?
Do you know ?
Take a paper bill out of your purse and read it!
A NOTE What is a note?
A debt instrument !
So I will ask again WHAT IS MONEY?
You are holding CURRENCY but is it money?
Remember the best lie is the biggest lie
Obama & the Socialist/Democrat Party has never done anything to solve the shortfalls of S.S. & Medicare. Obama stole $716 Billion from Medicare, while the Democrats "lose it" when the GOP discussed making it solvent with a voucher program for younger workers, (if they chose). Of course the Democrats don't want this huge source of money to use to buy votes with promises, and deficit spending to dry up!