The 44 trillion con-job lie that Bush/O'Neill sell to destroy Social Secur

[papau]

Now we have all seen http://story.news.yahoo.com/news?tmpl=story&cid=544&ncid=716&e=4&u=/ap/20040116/ap_on_go_pr_wh/bush_state_of_union Bush to Revive Social Security Tax Plan By SCOTT LINDLAW, Associated Press Writer WASHINGTON - President Bush will use next week's State of the Union address to try to revive a proposal that would allow younger workers to invest a portion of their Social Security taxes in the stock market, aides say.

and the SPECIAL REPORT ON THE U.S. ECONOMY -The $44 Trillion Abyss
The baby-boomers are about to retire, and it's going to cost us—big. Here's what the government doesn't want you to know By Anna Bernasek
where the scare /threat motivator for private SS accounts is put out there with a lot of BS about intergeneration equity - as if there is no current intergenerational equity. - http://www.fortune.com/fortune/investing/articles/0,15114,538789,00.html 44Trillion Deficit Report? By Peronet Despeignes of the Financial Times May 30, 2003, also tried to sell this bull shit by saying that the U.S. currently faces a future of chronic federal budget deficits totaling at least $44 trillion in current U.S. dollars - with saying that this was $44 trilliuon over fprever - meaning it does not really exist!

The study asserts that sharp tax increases, massive spending cuts or a painful mix of both are unavoidable if the U.S. is to meet benefit promises to future generations.


WHAT AN AMAZING AMOUNT OF BULL SHIT - and it is leading to an amazing amount of mis-information on SS privatization in DU

Daniel Patrick Moynihan, RIP, and I fought via letters/email over this - and I think I was correct since the committee did not end up recommending private accounts as a solution to SS.Indeed, SS does not need a solution. It is solid to 2043, after which the Reagan retirement age of 67 needs to be increased to 70, or the wage base cap removed causing the rich to pay more (oh, the horror of that thought!).

The beauty of a inter-generational social insurance plan is the fact that it needs the least amount of funds on hand at any one point - and therefore has the lowest tax for the highest benefits. The $44 Trillion liab is over forever - which means it effectively does not exist during the next 50 years if you allow for a liability of 44 trillion plus 50 years interest to exist in 50 years. It need never be paid off.

The $44 trillion is a scare - a threat - being used to rape Social Security.The Dems in the 40's tried to build a SS fund just like private business would have - and the GOP stopped it crying Socialism by the back door (from book SS by Meyers) - indeed any advantage to equities can be had by investing the SS trust assets in equities - but that means SS could not fund the tax cut for the rich - meaning more borrowing to fund the deficit - meaning higher interest rates.

The Bush plan is to cut SS benefits more than that required to fund private accounts - thereby reducing the $1 trillion needed for the initial set-up of such accounts. The end result is lower SS benefits and Medicare, with the pro-GOP/rich political result of folks happy to reduce tax on the 99% of the income that the rich get that is called investment income - because they - the middle class - get a small reduction in tax also.And we still add to the deficit, and those funds the rich are now stealing from SS as SS is used to fund general expenses like defense need never be repaid!

Currently the payroll tax is expected to be less than SS benefit outgo in 2017 and later, forcing SS to cash in some bonds, forcing the FIT to increase to bring in some cash to give to SS for those bonds - but this is a tax increase on the rich - they pay back what they have stolen - oh the horror!!!!

So we have this SS destroying private account plan so the rich need not pay back those monies!

If we want private accounts via payroll deduction, then a voluntary addition deduction - as was proposed by Clinton - is easy to set-up and then you have private accounts and you do not screw old folks and social security.

But why do private accounts in an honest way, when you can screw folks so as to reward the rich?

[papau]

1. Please see this DU thread for beginning of discussion

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=3658