Pastor Dave
2/6/2014 10:14:00 PM
On 2/6/2014 4:58 PM, mg wrote:
> On Thu, 06 Feb 2014 10:54:36 -0500, Josh Rosenbluth
> <noway@nowhere.com> wrote:
>
>>>>>> Doesn't your solution of raising Social Security taxes also blame Social
>>>>>> Security for causing huge deficits?
>>>>>
>>>>> There's no such thing as a free lunch. The public approves of those
>>>>> two insurance programs by a margin of about 70% or 80%, as I recall,
>>>>> and if they want to continue with those insurance programs, for their
>>>>> children and their grandchildren, without cuts, they will have to pay
>>>>> higher premiums. That reality can be spun in a variety of different
>>>>> ways, but I believe that is the reality.
>>>>
>>>> Fair enough, but then why are you criticizing the CBO for blaming Social
>>>> Security for deficits when you are doing the same thing.
>>>
>>> If the government didn't have to repay Social Security, it could
>>> reduce the deficit (but not the debt). Given the nature of accounting
>>> systems, I believe that statement is mathematically true, but I don't
>>> believe that its morally correct to blame Social Security for the
>>> problem.
>>
>> I didn't take the CBO as blaming Social Security. Rather I thought they
>> were making a mathematically true statement (the CBO is inclined to
>> stick to mathematical truths rather than ideology) as did you.
>
> It's mathematically true based on an unwritten "if" statement that
> says the government doesn't have to pay back the money it owes Social
> Security. Here are some quotes from the CBO report:
The same unwritten "if" applies to your plan to increase Social Security
taxes. In fact, the math as it relates to the deficit, debt and Trust
Fund is exactly the same whether there is a $1 increase in SS taxes or a
$1 decrease in SS benefits.
> As I recall, the U.S. government currently owes the Social Security
> fund approximately $3 trillion. So, I think the obvious question is if
> this is a legal debt, by law or not?
It is.
> Can the president simply refuse to pay the money back
He cannot refuse to pay back a maturing bond held by the Trust Fund.
But, by raising SS taxes (your idea) or reducing SS benefits (the CBO
idea), what will instead happen is the maturing bond will be replaced by
another bond, the net effect being the money is never paid back (and
quite legally so).
> Well, a beginning explanation might be that the right-wing,
> knuckle-draggers have been right all along when they said that the
> Social Security fund is nothing but a cabinet full of worthless IOUs.
> Then, if the right-wingers were correct, doesn't that also mean that
> the left-wing, belly-button staring intellectuals, who have been
> saying those debts are backed by the "full faith and credit" of the
> federal government, full of crap? Afterall, what good does it do if
> they're backed by the full faith and credit of the government, if the
> government doesn't intend to pay the money back and perhaps never
> will?
I guess you must be one of those left-wing, belly-button staring
intellectuals since your plan to raise SS taxes results in the money
never being paid back to the Trust Fund.