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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.

http://www.ssa.gov/oact/trsum/index.html

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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