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Reply #51: In 2010 Social Security (OASDI) income was $781.1 Billion, & outgo was $712.6 Billion, [View All]

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Laluchacontinua Donating Member (277 posts) Send PM | Profile | Ignore Mon Oct-31-11 01:43 AM
Response to Reply #26
51. In 2010 Social Security (OASDI) income was $781.1 Billion, & outgo was $712.6 Billion,
Edited on Mon Oct-31-11 01:47 AM by Laluchacontinua
leaving a surplus of $68.5 BILLION. Of that $781.1 BILLION, $661.3 BILLION came in from DEDICATED OASDI payroll taxes & DEDICATED taxation of OASDI benefits.

Those DEDICATED taxes covered all but $51.3 billion of the checks mailed to SS recipients. The remainder was covered by:

1) Yearly interest payment of $117.5 billion on the approximately TWO TRILLION DOLLARS in the Trust Fund. Which represents THIRTY YEARS OF OVERPAYMENT OF PAYROLL TAXES.

2) Scheduled redemption of Trust Fund bonds = $2.4 BILLION.

Divide the 2010 cost of $712 billion by 12 and you get $59 billion a month. 15% of that (the portion of total SS income coming from interest & bond redemptions) = $8.85 billion, a piddling amount.

The article you posted is designed to scare and confuse people. The idea that a $134 billion dollar shortfall would necessitate cuts to Social Security, Medicare, Medicaid, etc. (all of which are self-funding but for Medicaid) -- or that if those programs weren't cut, nothing else the government does would happen -- for want of $134 billion -- is ridiculous.

The 2010 US budget excluding SS & Medicare, was about 1.8 TRILLION. To run a headline stating that SS checks won't be mailed out if the debt ceiling isn't raised, to focus on self-funded social programs when there is a DEDICATED income stream for those programs and only a miniscule part comes from general revenues -- is pure propaganda.

1) SS is self-funding.
2) There were nearly $2 trillion worth of things which could be cut that are NOT SS and were NOT self-funding. To wit:

The portion of SS coming from general revenues (as interest) for one month is slightly more than the cost of one Tomahawk missle (at $6.8 billion a pop.)

Why didn't the headline read: "Government contractors' pay will have to be cut..."

Because THAT, & interest payments to rich people, are the biggest items in the ACTUAL federal budget. SOCIAL SECURITY IS SELF-FUNDED.

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  -"Washington Post Discards All Journalistic Standards In Attack on Social Security" sabrina 1  Oct-30-11 04:53 PM   #0 
  - Well you can do that at the expense of everything else.  dkf   Oct-30-11 04:59 PM   #1 
  - Can you explain what you mean by 'at the expense of  sabrina 1   Oct-30-11 05:14 PM   #5 
  - Maybe you didn't notice how we almost weren't able to pay SS benefits  dkf   Oct-30-11 05:24 PM   #10 
     - you're incredibly misinformed. remarkably so.  nashville_brook   Oct-30-11 05:33 PM   #13 
     - Obama: Social Security Checks Threatened If Debt Ceiling Deal Isn't Reached  dkf   Oct-30-11 05:51 PM   #17 
        - Yes, and he later said it was because nobody could mail checks. Nothing to do with funds.  PSPS   Oct-30-11 06:00 PM   #20 
           - Nope. It was because of a lack of funding.  dkf   Oct-30-11 06:14 PM   #26 
              - You haven't answered my question.  sabrina 1   Oct-30-11 06:18 PM   #28 
              - Good question...  dkf   Oct-30-11 06:44 PM   #31 
                 - Well, I think the creditors have something to say about these  sabrina 1   Oct-30-11 07:25 PM   #34 
                 - Pure unadulterated sophistry.  ooglymoogly   Oct-30-11 07:57 PM   #35 
                 - Well actually the amount that is paid back to China does change.  fasttense   Oct-31-11 06:24 AM   #62 
                 - SS securities have maturity dates & set rates.  Laluchacontinua   Nov-01-11 02:20 PM   #96 
              - In 2010 Social Security (OASDI) income was $781.1 Billion, & outgo was $712.6 Billion,  Laluchacontinua   Oct-31-11 01:43 AM   #51 
                 - That doesn't add up to a negative cash flow.  Major Hogwash   Oct-31-11 03:12 AM   #52 
                    - They ignored the interest. As per usual. As they will ignore Obama's tax holiday,  Laluchacontinua   Oct-31-11 05:58 AM   #61 
                    - They failed to mention that SS has other sources of revenue  sabrina 1   Oct-31-11 06:55 PM   #81 
     - That wasn't because of the debt ceiling  PSPS   Oct-30-11 05:40 PM   #15 
     - Thank you!  sabrina 1   Oct-30-11 05:56 PM   #19 
     - No no no. Social security runs through the general fund.  dkf   Oct-30-11 06:02 PM   #21 
        - Your knowledge of how bonds and financing works is flawed.  PSPS   Oct-30-11 06:12 PM   #25 
        - But the payroll tax flows in to the same general account as the rest of the funds.  dkf   Oct-30-11 06:22 PM   #29 
        - The article is claptrap & citing claptrap as a reference is not compelling.  Laluchacontinua   Oct-31-11 04:04 AM   #54 
        - +1 And that nails the coffin shut on some of the inane claptrap  ooglymoogly   Oct-30-11 08:02 PM   #36 
        - That's completely false. 1) SS is funded through DEDICATED OASDI taxes, which currently  Laluchacontinua   Oct-31-11 04:02 AM   #53 
           - Thank you for your posts. They have been scaring people for  sabrina 1   Oct-31-11 07:06 PM   #82 
     - What has that got to do with SOCIAL SECURITY??  sabrina 1   Oct-30-11 05:46 PM   #16 
     - The right question. nt  ooglymoogly   Oct-30-11 08:42 PM   #38 
     - That had to do with the salaries of the government clerks, not any SocSec shortfall n/t  eridani   Oct-30-11 11:03 PM   #43 
     - "Great independently funded system we have."  Hissyspit   Oct-31-11 12:47 AM   #47 
     - We almost weren't able to pay anything at that point. Again  sabrina 1   Oct-31-11 01:05 AM   #49 
     - The Social Security fund can be solvent without any ability to pay benefits.  dkf   Oct-31-11 01:43 AM   #50 
     - Actually I just noticed the lying articles making that claim, like the one you posted.  Laluchacontinua   Oct-31-11 04:09 AM   #55 
  - Wrong.  Rex   Nov-01-11 05:20 PM   #99 
  - I posted that article on Editorials/others yesterday now I realize it's flawed  alp227   Oct-30-11 05:01 PM   #2 
  - No need to apologize, it was written with the intention of  sabrina 1   Oct-30-11 05:16 PM   #7 
  - SS had enough in the trust fund to grant a COLA this year!!  CarmanK   Oct-30-11 05:05 PM   #3 
  - Excellent post, thank you.  sabrina 1   Oct-30-11 05:20 PM   #9 
  - AARP will change the moment the wind gusts.  ooglymoogly   Oct-30-11 08:59 PM   #40 
  - Post equals Times  libinnyandia   Oct-30-11 05:07 PM   #4 
  - Recommend  xchrom   Oct-30-11 05:15 PM   #6 
  - KICK! Keep up the good fight, people.  senseandsensibility   Oct-30-11 05:17 PM   #8 
  - Maxine Waters, I think it was Maxine,  sabrina 1   Oct-30-11 05:32 PM   #11 
     - Yes! It was Maxine!  senseandsensibility   Oct-30-11 05:34 PM   #14 
        - Thanks, I thought she was the one. She has been very angry  sabrina 1   Oct-30-11 05:53 PM   #18 
  - K/R  Autumn   Oct-30-11 05:32 PM   #12 
  - WaPo has never been liberal, and has moved further to the right...  SteveM   Oct-30-11 06:04 PM   #22 
  - Technically, the Post is right. If SS is paying out more than it takes in, then it is cash negative  Exilednight   Oct-30-11 06:05 PM   #23 
  - It is NOT paying out more than it takes in.  sabrina 1   Oct-30-11 06:11 PM   #24 
  - Technically, the bonds are not surplus. I'm not defending everything in the  Exilednight   Oct-30-11 06:15 PM   #27 
     - Well, the bonds were a good investment for the people  sabrina 1   Oct-30-11 06:32 PM   #30 
     - Exactly so.  suffragette   Oct-30-11 06:56 PM   #33 
     - Hi suffragette!  sabrina 1   Oct-30-11 08:58 PM   #39 
        - Hi sabrina  suffragette   Oct-31-11 12:35 AM   #46 
     - "This is 'Shock Doctrine' tactics. And we should not fall for it."  woo me with science   Oct-30-11 09:13 PM   #42 
     - In 2010 SS ran a surplus. FICA taxes + taxation of benefits + interest  Laluchacontinua   Oct-31-11 04:21 AM   #57 
  - That is SUPPOSED to happen!  eridani   Oct-30-11 11:04 PM   #44 
  - Good point, thank you for making it.  sabrina 1   Oct-31-11 12:04 AM   #45 
  - No, they're wrong because they spun it to make people think it was something "bad"  Laluchacontinua   Oct-31-11 04:19 AM   #56 
     - Anytime you pay out more than you take in, you're cash negative. The bonds don't count as  Exilednight   Oct-31-11 05:19 AM   #59 
        - In 2010 SS collected about $70 billion more than it spent. The headline was wrong  Laluchacontinua   Oct-31-11 05:30 AM   #60 
        - If they did collect $781 billion in FICA tax alone, then yes, the headline is wrong. But it's only  Exilednight   Oct-31-11 06:08 PM   #77 
           - The TF INCREASED last year. It didn't decrease. The headline is only "right" if you think the  Laluchacontinua   Oct-31-11 06:41 PM   #78 
        - You keep ignoring the INCOME on those held bonds. WHY?  Hassin Bin Sober   Oct-31-11 12:06 PM   #64 
        - I'm ignoring them because they don't count as income. Slice it anyway you want, but  Exilednight   Oct-31-11 06:07 PM   #76 
           - Interest doesn't count as income? Since when? By whose accounting principles?  Laluchacontinua   Oct-31-11 06:42 PM   #79 
           - Go back and re-read what i posted.  Exilednight   Oct-31-11 07:26 PM   #84 
              - When the interest is paid, as it has been to SS without fail  sabrina 1   Oct-31-11 08:36 PM   #86 
              - Only cash coming in from revenue is ever considered income, everything else is  Exilednight   Nov-01-11 05:09 AM   #91 
                 - Interest income is income. I'm not sure what motivates the denial of that fact.  Laluchacontinua   Nov-01-11 11:55 AM   #94 
                 - By government accounting rules, interest earned off of bonds does not count as income. Seriously,  Exilednight   Nov-01-11 05:16 PM   #98 
                    - could you direct me to that post? there are a lot of posts up & you can find your post quicker than  Laluchacontinua   Nov-01-11 06:32 PM   #102 
                 - All income is an asset. All assets are income.  sabrina 1   Nov-01-11 01:18 PM   #95 
                    - Here's the problem people are having with this.  Exilednight   Nov-01-11 05:20 PM   #100 
                       - A bond can't be a liability both in the general budget and the SS TF.  Laluchacontinua   Nov-01-11 06:34 PM   #103 
                       - Keep looking, it's there. n/t  Exilednight   Nov-01-11 06:36 PM   #104 
                          - LOL. Yes, it's there, but it doesn't say what you say it does.  Laluchacontinua   Nov-01-11 06:47 PM   #106 
                       - And Bonds have proven to be an asset to the American People.  sabrina 1   Nov-01-11 08:46 PM   #107 
              - The interest is not the bonds. Interest payments ARE income, by all accounting principles.  Laluchacontinua   Nov-01-11 12:54 AM   #89 
                 - They're never considered an asset in the banking industry. n/t  Exilednight   Nov-01-11 05:12 AM   #92 
                    - got a link for that?  Laluchacontinua   Nov-01-11 11:54 AM   #93 
                       - Yep, here ya go.  Exilednight   Nov-01-11 05:15 PM   #97 
                          - Ah, found it. Now if you could point me to the relevant section in those 2037 pages.  Laluchacontinua   Nov-01-11 06:40 PM   #105 
           - You are ignoring the fact that the SS Fund showed a SURPLUS  sabrina 1   Oct-31-11 08:31 PM   #85 
              - The interest off the T Bonds are not income. Basic government accoutning practice. Here's a link  Exilednight   Nov-01-11 05:22 PM   #101 
        - You keep ignoring the INCOME on those held bonds. WHY?  Hassin Bin Sober   Oct-31-11 12:06 PM   #65 
        - So what if it is cash negative?  Ganja Ninja   Oct-31-11 12:29 PM   #69 
           - +1.  Laluchacontinua   Oct-31-11 06:42 PM   #80 
  - K&R&Bookmarked for later reference.  Doremus   Oct-30-11 06:53 PM   #32 
  - Lol, I love that disgruntled baby!  sabrina 1   Oct-30-11 08:05 PM   #37 
  - k&r n/t  RainDog   Oct-30-11 09:13 PM   #41 
  - K&R  woo me with science   Oct-31-11 12:48 AM   #48 
  - The key fact is that SS has $2.6 trillion in bonds that are every bit as good as the bonds China own  reformist2   Oct-31-11 04:37 AM   #58 
  - Exactly, we are creditors just like China but they seem to  sabrina 1   Oct-31-11 11:45 AM   #63 
  - Sadly  Harmony Blue   Oct-31-11 12:23 PM   #68 
  - Glad I saw this in time to Rec it. (nt)  redqueen   Oct-31-11 12:10 PM   #66 
  - Ooooooo "Cash Negative"!!! Be afraid! Be very afraid!  Ganja Ninja   Oct-31-11 12:21 PM   #67 
  - Kicked and recommended with one caveat,  Uncle Joe   Oct-31-11 12:30 PM   #70 
  - Hi Uncle Joe, you are absolutely right. I keep forgetting to use  sabrina 1   Nov-01-11 01:02 AM   #90 
  - "They" are coming for our Social Security/Medicare,  bvar22   Oct-31-11 12:42 PM   #71 
  - And some people 'on the left' will defend it and excuse it  sabrina 1   Oct-31-11 12:59 PM   #74 
  - REAL Redistribution of Wealth  Martin Eden   Oct-31-11 12:43 PM   #72 
  - Exactly. So much for the "53% of the population doesn't pay income tax" meme.  Laluchacontinua   Oct-31-11 07:11 PM   #83 
  - This quote pretty much sums everything up:  jtown1123   Oct-31-11 12:50 PM   #73 
  - 1,000 K&R  swilton   Oct-31-11 05:22 PM   #75 
  - Kick....n/t  unkachuck   Oct-31-11 08:49 PM   #87 
  - Too late to recommend.  Quantess   Nov-01-11 12:31 AM   #88 
  - K&R....!  KoKo   Nov-01-11 09:33 PM   #108 

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