[Politics_CurrentEvents_Group] Re: Democrats Deny Social Security's Red Ink

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Sunday, February 27, 2011

 

                I won't give this new post of Mr. Majors the contempt it deserves. Extremist alarms deserve no respect whatever. Walt

 

 

 


--- In Politics_CurrentEvents_Group@yahoogroups.com, "Sheep&Goatlady" <springcreek@...> wrote:
>
> Bruce, I calucated how much medicare get from only medicare receiepants each month, it is over four million dollars a month as year that is 48 million dollars a year,, remember some folks pay more for medicare depending on their income, this is rough rounded off,
> ----- Original Message -----
> From: Bruce Majors
> To: tea-party-patriots@googlegroups.com
> Sent: Saturday, February 26, 2011 11:59 AM
> Subject: [Politics_CurrentEvents_Group] Democrats Deny Social Security's Red Ink
>
>
>
>
>
>
>
> From: subscriberservices@...(FactCheck.org) Date: Fri, Feb 25,
> 2011, 10:25pm (CST+6) To:
> Democrats Deny Social Security's Red Ink
> Some claim it doesn't contribute to the federal deficit, but it does.
> February 25, 2011
>
> Summary
>
> Some senior Democrats are claiming that Social Security does not
> contribute "one penny" to the federal deficit. That's not true. The fact
> is, the federal government had to borrow $37 billion last year to
> finance Social Security, and will need to borrow more this year. The red
> ink is projected to total well over half a trillion dollars in the
> coming decade. President Barack Obama was closer to the mark than some
> of his Democratic allies when he said that Social Security is "not the
> huge contributor to the deficit that [Medicare and Medicaid] are."
> That's correct: Medicare and Medicaid consume more borrowed funds than
> Social Security, and their costs are growing more rapidly. But Obama's
> own budget director, Jacob Lew, was misleading when he wrote recently
> that "Social Security benefits are entirely self-financing." That's not
> true, except in a very narrow, legalistic sense, and doesn't change the
> fact that Social Security is a growing drain on the government's
> finances. Payroll taxes exceeded benefit payments regularly until 2010.
> But the fact is that Social Security has now passed a tipping point,
> beyond which the Congressional Budget Office projects that it will
> permanently pay out more in benefits than it gathers from Social
> Security taxes. The imbalance is made even larger this year by a
> one-year "payroll tax holiday" that was enacted as part of last year's
> compromise on extending the Bush tax cuts. The lost Social Security tax
> revenues are being made up with billions from general revenues and must
> all be borrowed. The combined effect is to add $130 billion to the
> deficit in the current fiscal year. It&rsquo;s important to note that
> benefit payments are not in immediate danger. Under current law,
> scheduled benefits can be paid until about 2037, according to the most
> recent projections. But keeping those benefits flowing is already
> requiring the use of funds borrowed from the public. So we judge the
> claim that Social Security is not currently contributing to the deficit
> to be false.
>
> Note: This is a summary only. The full article with analysis, images and
> citations may be viewed on our Web site:
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> This message was sent by FactCheck.org, a project of the University of
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>

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