The Obama administration has announced the end of the Social Security retirement program. Congressional Republicans have agreed with the plan. The announcement is hidden in the payroll tax reduction. The payroll tax reduction is a 16 percent reduction in contributions to Social Security and no change to payouts. This defunding of Social Security will accelerate the bankruptcy date of the Social Security program from 2016 to 2012. The Social Security lockbox is empty, containing IOUs from Congress. When current contributions cannot cover the current payments, Congress will need to raise taxes elsewhere to start paying the IOUs. Good luck with that idea!
Never let a good crisis go to waste! President Barack Obama likes bailouts, and he will love this one. He can declare Social Security bankrupt and save it with a new government agency. All of the previous government promises will be replaced with new, different promises. Funding will come from the congressional pork barrel rather than a separate trust fund. Future benefits will be redistributed. Ponzi schemes never end well.
R.I.P. Social Security 1935-2012.
Gary Vandeman
Goleta
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