In seven years give or take a year the Social Security trust fund will run out of money. When (not if) it runs out of money it will pay 80 to 70 % of what is promised to the Social Security recipients. Personally it would take a proximate 6% of my income give a percentage up or down. I think of it this way it’ s as if I was taxed at an extra 5% on my present income ( some may say my math is wrong, but I’m taking into account that my income therefore my regular tax would be less).
Because the trust fund will run out of money and the so called peoples representatives cannot agree on how to replenish the trust fund the government of the United States Social Security trust fund will not be part of the government’s debt.
(1) The government will no longer have to pay the short fall that it’s paying now, there by increasing the amount that it has to use from the general funds
(2) The Social Security trust funds should no longer be on the books as it is now as a debt.
If one has “blinders” on this would seem like a good thing, a way of reducing the government’s debt.
It’s not a good thing, government may reduce the amount it owes on the books, but the amount of bankruptcies because of what seniors of America owe would raise. The amount that seniors and the disabled would be able to purchase would decrease. If the amount of purchases that seniors and the disabled can purchase decreases the amount of money that businesses can make decreases, with the possibility of bankruptcies would increase. That being the case the amount of taxes that is pulled in by the government decreases and the ability to pay for things like roads and the military also decreases.
* Social Security is not going away, if there is no trust fund which the government can use, Social Security becomes a pay as you go system. ( what ever the social security tax is the previous year is given out this year. And that’s a fact.
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