12 Ways to Fix Social Security

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"The trust fund’s reserves are currently projected to cover payments until the end of 2037."
I am amazed that this kind of misinformation continues to be spread. Every dollar of the approximately $2.5 tillion in surplus Social Security revenue that was generated by the 1983 payroll tax hike has already been spent on wars and other government programs. This is an indisputable fact, that high profile people have been pointing out for two decades. Consider the following quotations.
"...the most reprehinsible fraud in this great jambalaya of frauds is the systematic and total ransacking of the Social Security trust fund..in the next centurylllthe American people will wake up to the reality that those IOUs in the trust fund vault are a 21st century version of Confederate bank notes."--Senator Ernest Hollings of SC, Speech on Senate Floor, October 13,1989
"...on that chart in emblazoned red letters is what has been taking place here, embezzlement. During the period of growth we have had during the past 10 years, the growth has been from two sources. One, a large credit card with no limits on it, and, two, we have been stealing money from the Social Security recipients ofthis country."--Senator Harry Reid of NV, Speech on Senate Floor, October 9, 1990
"There are no stocks or bonds or real estate in the trust fund. It has nothing of real value to draw down."--David Walker, Comptroller General of the U.S. Government Accountability Office (GAO), Speech in Washington DC, January 21, 2005
"There is no trust fund, just IOUs that I saw firsthand that future generations will pay--will pay for either in higher taxes, or reduced benefits, or cuts to other critical government programs."--President George W. Bush, Speech at West Virginia University at Parkersburg, April 5, 2005
In the Summary of the 2009 Social Security Trustees Report, a single sentence at the end of the second paragraph on page 18, spills the truth about the so-called “trust fund bonds.” That sentence reads,
“Neither the redemption of trust fund bonds, nor interest paid on those bonds, provides any new net income to the Treasury, which must finance redemptions and interest payments through some combination of increased taxation, reductions in other government spending, or additional borrowing from the public.”
The above quotation appears in the official Social Security Trustees Report that was signed by Tim Geihtner, and all the other Social Security Trustees. The trustees are the ultimate authority on the status of the Social Security trust fund, and they make it perfectly clear that the so-called "trust fund bonds" do not provide any new net income to the Treasury. This is just another way of saying they are worthless.
Allen W. Smith, Ph.D.
Professor of Economics Emeritus
Eastern Illinois University
PLEASE VISIT MY WEBSITE at www.thebiglie.net to find out the truth about the trust fund. Thank you!

Allen W. Smith, Ph.D. of FL 9:00PM May 18, 2010

Eliminate it and return all the funds paid in to the people

joe cool of CA 8:50PM May 18, 2010

The gradual raise in the payroll tax ("as needed") would amount to about 20 cents per week per year.
That would be a lot easier to take than having to work until you are seventy, or trying to get by on a benefit that is even less than today's barely subsistence benefit.
And raising taxes "on the rich" would just make them more determined to kill off Social Security altogether.
Means testing would be degrading and expensive.
Lets keep what we have. Twenty cents per week is something we can afford.

coberly of OR 5:17PM May 18, 2010

A 5% reduction to the SS payout starting in 2010 is unfair. It affords no time for new retirees to plan for such a harsh impact
A moderate mix of solutions with time to adjust would be a better choice.

rick of RI 5:04PM May 18, 2010

why did we not get the cost of living raise for 2010/? we need our money we paid in for s.s.if anyone work 40 years we deserve our money.dont you agree ..elaine

elaine of SC 1:20PM May 18, 2010

If a combination of some of these suggestions were utilized, it would diversify and minimize the impact. I would suggest a combination of these items.
1. Raise the retirement age and reduce benefits now, but put the changes in effect 10 years from now. This allows retirees to plan for the event with enough time to make adjustments due to the new retirement age and benefits.
2. Increase contributions by employees and employers.
3. Raise or eliminate the SS tax income cap.

AB of KS 1:19PM May 18, 2010

Why is it so hard to fix just raise the cap and stop raising the rate on the people who can least afford it

Robert of MA 12:42PM May 18, 2010

How about repaying all the borrowed Social security money, and then not let the Clowns in congress get their hand on it again !! Then you no pay in you no draw out !!!!!!! FIXED

jerrbarn of LA 12:24PM May 18, 2010