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In reply to the discussion: Ultra Low Interest Rates A Threat To Social Security [View all]Taitertots
(7,745 posts)53. The obligations are independent of the income stream.
The exact same amount of money needs to come out of the general fund regardless of what rate is selected. The source of that revenue is the same regardless of the status of the "trust". The rate is irrelevant because it doesn't change anything. It could be 100 trillion dollars and every penny would still come from increased taxes and/or austerity.
To explain the shift in the tax burden:
The funding obligations are fixed by legislation. The "surplus" is used to offset progressive marginal income taxation. It replaces progressive marginal income taxation with regressive taxes on workers. Shifting the tax burden from people who would have paid a higher effective rate on income to hourly workers whose taxes were effectively increased.
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From previous reports. Just because they're not online does not mean they do not exist.
jeff47
Mar 2016
#41
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market
Hoyt
Mar 2016
#28
I think they have driven rates down in the hopes of spurring job creating business.
Hoyt
Mar 2016
#29
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.
strategery blunder
Mar 2016
#47
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement
GoneFishin
Mar 2016
#51