this post was submitted on 21 Oct 2024
391 points (99.0% liked)

politics

19145 readers
2336 users here now

Welcome to the discussion of US Politics!

Rules:

  1. Post only links to articles, Title must fairly describe link contents. If your title differs from the site’s, it should only be to add context or be more descriptive. Do not post entire articles in the body or in the comments.

Links must be to the original source, not an aggregator like Google Amp, MSN, or Yahoo.

Example:

  1. Articles must be relevant to politics. Links must be to quality and original content. Articles should be worth reading. Clickbait, stub articles, and rehosted or stolen content are not allowed. Check your source for Reliability and Bias here.
  2. Be civil, No violations of TOS. It’s OK to say the subject of an article is behaving like a (pejorative, pejorative). It’s NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
  3. No memes, trolling, or low-effort comments. Reposts, misinformation, off-topic, trolling, or offensive. Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.
  4. Vote based on comment quality, not agreement. This community aims to foster discussion; please reward people for putting effort into articulating their viewpoint, even if you disagree with it.
  5. No hate speech, slurs, celebrating death, advocating violence, or abusive language. This will result in a ban. Usernames containing racist, or inappropriate slurs will be banned without warning

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

That's all the rules!

Civic Links

Register To Vote

Citizenship Resource Center

Congressional Awards Program

Federal Government Agencies

Library of Congress Legislative Resources

The White House

U.S. House of Representatives

U.S. Senate

Partnered Communities:

News

World News

Business News

Political Discussion

Ask Politics

Military News

Global Politics

Moderate Politics

Progressive Politics

UK Politics

Canadian Politics

Australian Politics

New Zealand Politics

founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] -4 points 1 month ago* (last edited 1 month ago) (2 children)

The Social Security Trust Fund does not exist. It is an accounting fiction. When Social Security was passed, it came with a tax increase to offset the increased spending. For decades, the tax increase was greater than the spending increase, so the government spent the difference on other stuff; but made a note that Social Security had a surplus. However, since 2010, this flipped and the cost of Social Security has exceeded the income of its associated tax. The bean counters would the flip happened in 2021, but that is because they believe in the fiction of the Social Security Trust Fund, so that interest on the Trust Fund counts as income to Social Security, despite the fact that said interest is paid by the federal government.

So, why does this accounting fiction called the Social Security Trust Fund matter? Because it has the force of law. Under current US law, Social Security is exempt from the the typical budgetting rules. As long as the bean counters would say the Trust Fund has a positive balance, Social Security is authorized to increase it's budget to meet it's obligations. In contrast, most Federal programs get their budgets increased as part of the yearly budget (or a continuing resolution when Congress can't pass a budget. Or they just close when Congress can't pass a CR).

So, what happens when the trust fund runs out?

Option 1, Congress does not authorize continued spending at current levels. This is typically known as a spending cut. But because it is triggered by an existing law and Republicans have spent decades playing up the trust fund, they can act like this cut was a force of nature, and not them actively deciding to cut it in the congressional budget.

Option 2, Congress funds social security just like it funds everything else, through an appropriations bill. SS keeps operating, and becomes another political football in the annual budget fight

Option 3, Congress picks some way to tell the bean counters that the social security trust fund is still positive. Social security keeps operating at current lol levels, and remains exempt from the normal appropriations process.

So, what is all this talk about removing the cap on the Social Security payroll tax? If we ignore all the accounting trickery, that is about taking a regressive income tax payed by workers earning less that $168,600/year and turning it into a flat tax. Nothing whatsoever to do with social security, but I agree that a flat tax is better than a regressive tax. Still not as good as a progressive tax, which is the only thing that would have been politically viable but for the fiction that this tax is at all related to Social Security benefits (and their associated limit).

Social Security isn't even the only federal program to have this issue. Our highway system is payed for by the Highway Trust Fund, which is funded by a tax on gasoline. This fund has been insolvent since 2008, so Congress just included highway funding in their appropriations bills and payed for the difference like they pay for most Federal programs.

[–] [email protected] 6 points 1 month ago

You wrote all of that, and you're still wrong.

How does that feel?

[–] [email protected] 3 points 1 month ago

I get where you're coming from with all this, but you might want to source your statements for the folks who don't.