Sunday, February 12, 2012

The Payroll Tax Cut Is Depleting Social Security

Congress is busy this week debating yet another extension on the payroll taxes we pay. Obama cut it temporarily so he could say he cut taxes on every working American. The left is busy saying that there is provision that says any shortages are made up out of the general fund. The pathetic Pawns are pushing that narrative without really telling the American People the truth.

When looking at an individual that is going under it is easy to pick up on where the downward death spiral began. The death spiral begins when an individual begins to stop paying bills or skips a month or two in hopes of catching up later. That quickly escalates into opening up new lines of credit to pay for bills before the finance companies catch on to what is happening. Once the new lines of credit dry up individuals then borrow against one line of credit to pay against another. All the time reaching maximums on credit limits. Eventually, things spiral out of control and individuals left hopeless file for bankruptcy.

The same thing is happening with Social Security. We already do not receive enough revenue from FICA or OASDI taxes to pay for the current benefits. We lower the taxes as a political gimmick to garner votes which depletes social Security faster than budgeted. Now not only are we increasing the burdens on the Social Security System but we are burdening the general fund as well. See there is no money in the general fund. The US is reaching the maximum we are able to borrow and Obama is playing a shell game with the money. Using the general fund when there is already a deficit is nothing more than shifted which pot of money is lighter. We are shifting the burden to somewhere else but it doesn't fix the issue. The issue is that we are going bankrupt. Even though the left and pathetic pawns are attempting to hide the fact that they have made promises to the public citizens that they are unable to ever pay for. Even if the actual Treasury bonds in the trust funds are being cashed in or not, there is a drain on the credit of the United States. Placing the burden on the general fund which is already running trillion dollar deficit annually is not going to keep Social Security afloat. Instead of pandering to the left with another gimmick on Social Security taxes, try fixing the issue at hand. We are broke Mr. President, stop listening to the enablers on the left. Even your budget increases expenditures for the year, we need real cuts and no, real cuts are not stop in anticipated growth. Your payroll tax cut is depleting Social Security no matter which pot you and your enablers claim is not being hurt. We are closer to bankruptcy today than we ever were before. Borrowing 25-30% of the budget and spending 8-10% of GDP is unsustainable and that is what you budget and spending plan do through eternity. All the left is doing is pushing around the shells hoping that someelse is in power when the chips begin to fall.

No comments: