On Wed, 13 Apr 2011 00:30:31 -0400, wrote:

On Tue, 12 Apr 2011 20:01:18 -0500, Boating All Out
wrote:

In article ,
says...

On Tue, 12 Apr 2011 17:44:51 -0500, Boating All Out
wrote:

http://www.ssa.gov/oact/progdata/fundFAQ.html#n7
"Far from being "worthless IOUs," the investments held by the trust
funds are backed by the full faith and credit of the U. S. Government.
The government has always repaid Social Security, with interest. The
special-issue securities are, therefore, just as safe as U.S. Savings
Bonds or other financial instruments of the Federal government."

... and the full faith and credit of the government is exactly what is
at stake here. SS has never run a deficit before so we are in virgin
territory here.

It's not virgin territory.
http://fpc.state.gov/documents/organization/51264.pdf
The SS Trust Fund itself was in the red for many years up to 1984.
Right now it's flush with over $2T.

up we have a whole bucket full of IOUs, promising the government will
pay out the benefits. They just have not said where the money will
come from. Let me say this again slowly

WE ARE SPENDING 166% OF REVENUE.

There is no money left to pay out that $2T

Things were great when SS generated billions of extra money for the
government to spend. The open question is how they will pay it back
now that we are spending 166% of revenue..

That's a spending and general revunue problem.
Got nothing to do with SS.

Where do you think the SS money will come from? It has to come from
general revenue, I suppose we could just print more money but that is
what Wiemar Germany did. Their currency collapsed.



I am just saying SS will be taxed at even a higher rate, virtually
eliminating it for anyone who has other sources of income.
Write that down and look at it in 10 years to see if I am right.

SS benefits are income, pure and simple. It will never be taxed except
as income along with other income.
If marginal rates go up and your SS income is subject to the rate, you
pay.

I was only guessing that they would means test SS through the tax
code, simply because that is the easiest way but I do bet they will be
means testing it.


You're just crying about taxes, when a while ago you wanted them raised.

I still do.
I was just talking about how they are already chipping away at the SS
promise. It was always said that SS would never be taxed. Now it is,
based on your means.

Saying things over and over don't make them facts.