Post by jgaffney on Mar 8, 2011 16:18:48 GMT -5
Ever since the President's National Commission on Fiscal Responsibility and Reform came out with their final report calling for changes to the Social Security system, advocates on both sides of the issue have been lining up their arguments for and against any changes.
MoveOn, of course, is first out of the box with their arguments against any changes to the system:
Myth: Social Security is going broke.
Reality: There is no Social Security crisis.
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Myth: We have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick you into agreeing to benefit cuts.
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Myth: Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need to be fixed.
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Myth: The Social Security Trust Fund has been raided and is full of IOUs
Reality: Not even close to true.
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Myth: Social Security adds to the deficit
Reality: It's not just wrong -- it's impossible!
Go to the website to read the body of each argument.
Meanwhile, The Fiscal Times, a conservative, investment-oriented webpage, presents it's own version of myth dispelling:
Myth: Social Security didn’t create the deficit — and shouldn’t be cut to close it
In 2010, payroll taxes fell short of sums paid out to beneficiaries, due largely to the recession. And while there may be small surpluses over the next few years, the deficits will resume permanently in 2015, as baby boomers begin to retire in droves. In other words, from here on out, year after year, Social Security only makes the deficit larger.
Myth: Social Security benefits are earned; reducing them amounts to confiscation
It’s more accurate to say your benefits are an entitlement granted by act of Congress (just like Medicare) and subject to change at any time by another act of Congress.
Myth: Social Security is funded until 2037
The trust fund, the ledger on which Social Security records all the surplus payroll taxes collected from wage-earners over the years, is large enough that the program need not ask for extra money to pay benefits until 2037, the year that the trust fund “runs dry” if nothing changes. But that’s not the same as being funded — at least not in a way that has any economic meaning.
Myth: The trust fund is invested in Treasury bonds, the most secure investments in the world. To suggest that the trust fund wouldn’t pay is blatant fear mongering
The issue is whether taxpayers think it’s so important to maintain Social Security benefits that they will gladly absorb the burden of paying off those bonds on the current schedule. Remember, Congress (that is, you know, taxpayers) can cut benefits — and thus postpone the need for Social Security to redeem any bonds — just by passing a law.
Myth: Social Security is an easy fix
Any policy wonk worth his or her spreadsheet can quickly come up with ways to bring Social Security into long term actuarial balance. You can conjure up solutions yourself using the Committee for a Responsible Federal Budget’s calculator. You’ll find it’s not that hard to wipe out the system’s long-term deficit.
Did you notice in the MoveOn portion how they are proposing a 25% benefit cut starting in 2037? Is anyone talking about that?
MoveOn, of course, is first out of the box with their arguments against any changes to the system:
Myth: Social Security is going broke.
Reality: There is no Social Security crisis.
--------------------------------------------------------------------------------
Myth: We have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick you into agreeing to benefit cuts.
--------------------------------------------------------------------------------
Myth: Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need to be fixed.
--------------------------------------------------------------------------------
Myth: The Social Security Trust Fund has been raided and is full of IOUs
Reality: Not even close to true.
--------------------------------------------------------------------------------
Myth: Social Security adds to the deficit
Reality: It's not just wrong -- it's impossible!
Go to the website to read the body of each argument.
Meanwhile, The Fiscal Times, a conservative, investment-oriented webpage, presents it's own version of myth dispelling:
Myth: Social Security didn’t create the deficit — and shouldn’t be cut to close it
In 2010, payroll taxes fell short of sums paid out to beneficiaries, due largely to the recession. And while there may be small surpluses over the next few years, the deficits will resume permanently in 2015, as baby boomers begin to retire in droves. In other words, from here on out, year after year, Social Security only makes the deficit larger.
Myth: Social Security benefits are earned; reducing them amounts to confiscation
It’s more accurate to say your benefits are an entitlement granted by act of Congress (just like Medicare) and subject to change at any time by another act of Congress.
Myth: Social Security is funded until 2037
The trust fund, the ledger on which Social Security records all the surplus payroll taxes collected from wage-earners over the years, is large enough that the program need not ask for extra money to pay benefits until 2037, the year that the trust fund “runs dry” if nothing changes. But that’s not the same as being funded — at least not in a way that has any economic meaning.
Myth: The trust fund is invested in Treasury bonds, the most secure investments in the world. To suggest that the trust fund wouldn’t pay is blatant fear mongering
The issue is whether taxpayers think it’s so important to maintain Social Security benefits that they will gladly absorb the burden of paying off those bonds on the current schedule. Remember, Congress (that is, you know, taxpayers) can cut benefits — and thus postpone the need for Social Security to redeem any bonds — just by passing a law.
Myth: Social Security is an easy fix
Any policy wonk worth his or her spreadsheet can quickly come up with ways to bring Social Security into long term actuarial balance. You can conjure up solutions yourself using the Committee for a Responsible Federal Budget’s calculator. You’ll find it’s not that hard to wipe out the system’s long-term deficit.
Did you notice in the MoveOn portion how they are proposing a 25% benefit cut starting in 2037? Is anyone talking about that?