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Rumor Mill News Reading Room, Current Archive

The Surprising Amount of Money Congress Has Stolen From Social Security - Where do Social Security's asset reserves really go?

Posted By: HotCoffee
Date: Saturday, 9-Jan-2021 07:27:41
www.rumormill.news/140762

Sean Williams

In case you haven't heard, America's top social program isn't on the best financial footing. According to the latest report from the Social Security Board of Trustees, Social Security is staring down a $13.9 trillion cash shortfall between 2035 and 2093, with the expectation that its $2.9 trillion in asset reserves will be completely exhausted in 15 years.

On one hand, there is solace in knowing that Social Security isn't going bankrupt, which is a function of two of the program's revenue sources being recurring (the payroll tax on earned income and the taxation of benefits). On the other hand, there's no sugarcoating the worry that would follow if benefit cuts of up to 23% are passed along to then-current and future retired workers, as of 2035. Remember, more than 3 out of 5 current retirees lean on Social Security for at least half of their monthly income.

How did Social Security get into this mess, you ask? That's a source of contentious debate, and it's also a land mine of misinformation.

Did Congress really raid Social Security?

One of the more common theories as to why Social Security is facing a huge long-term cash shortfall is that lawmakers in Congress have pilfered cash from the program and never returned it.

and more of course

https://www.fool.com/retirement/2020/02/15/the-surprising-amount-of-money-congress-has-stolen.aspx




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AN EXPLANATION OF THE FACTIONS