If you are not interested that is fine too. But then, I don't understand why you posted at all.
Because people have absolutely no idea how Social Security works and become alarmists for no reason. So I try to shoot down the false sense of danger.
The fact that payments are already coming out of taxes
Like they always have. That's exactly how the system is set up.
the size of these payments will grow steadily till they reach 77% of social security payments (in addition to the contributions being made to the program by the insured)
What? This sentence of yours makes absolutely no sense. Who is the "insured"?
and will then reduce payments to the recipients is non ground for complacency.
Maybe you don't understand. We can pay full benefits from Social Security for the next 20 years, without having to do ANYTHING (theoretically, since the economy is never completely stable and prone to positive and negative swings). 20 years, full payment, no problem.
We have 20 years to figure out and pass a law which allows us to meet the full financial obligation. Congress could pass a law tomorrow and by Friday we could have SS payed for for the next ~75 years. And even if no law is EVER passed, we STILL can afford to pay out over 75% of benefits as defined under law.
Yeah, it would suck for those receiving SS to only get 77% of what is legally promised to them under law, but it's not like they are going to get nothing. Social Security is a pay as you go system. There will never be a time where people aren't getting paid anything.
Do you have any comprehension of what the implications are for an economy that is already heavily in debt and is running a deficit of the size we are?
Do you have any idea what you are talking about? How does debt/deficit have anything to do with Social Security, when Social Security can ONLY be funded, under current law, by payroll taxes?
Such equanimity might have been acceptable before 2007, though even then it would have shown a very low understanding of the dynamics involved. But now it is irresponsible. Absolute irresponsibility.
No, what's irresponsible is how some Chicken Littles run around claiming the sky is falling and do not seem to understand what the acorn really is.
I'll try one more time to explain it to you, because I do not get the feeling you truly understand how Social Security works.
1. Current workers pay payroll taxes. These taxes are set aside specifically, and only, for Social Security.
2. Social Security payments are made from today's employees' payroll taxes.
2a. For example, if I'm working and you're drawing SS, the tax I pay in my next check theoretically goes straight to you.
3. The excess of payroll taxes paid went into the Trust Fund. For simplicity's sake, the Trust Fund does NOT pay Social Security benefits unless the amount of taxes is not enough to cover the amount of benefits.
4. We are currently in a situation where taxes to not make enough to pay out benefits, so we are now tapping into the Trust Fund after the decades of overpayments which were made.
5. We have enough in the Trust Fund to supplement current worker taxes to pay full benefits for the next 20 years.
6. If no law is changed, if the economy does not go through a prosperous period or anything which affects how long we can make payments, then those collecting Social Security will STILL receive over 75% of the benefits owed to them. The amount SS collects in taxes will be enough to still payout 75% of benefits on time.
7. Since the Trust Fund is ONLY used to supplement payroll taxes, any law passed which brings the amount collected in payroll taxes even with the amount paid in benefits means the Trust Fund will no longer be drained.
This is why having 20 years to do something about it really isn't something to become alarmed over. If we passed a law changing Social Security now or passed one in ten years, it will have absolutely no change in reality.
