Republican Lies About Social Security

It seems like all we can hear these days is how the budget deficit can never be fixed without "doing something" about Social Security (code for reducing benefits for those receiving Social Security). The Republicans have made this a mantra and repeat it incessantly -- so much that the mainstream media and many in the public are beginning to believe it.

The problem with this is that it's just not true. Republicans have always hated Social Security because it is a government program that works like its supposed to. They label it as "socialistic" (like that's a dirty word). It is socialistic, but it has kept millions of elderly people out of bread lines and kept them from having to live on the streets. These people have paid into the program all of their lives and now can live in dignity with the small check they receive each month.

The problem the Republicans have is that their Wall Street buddies can't get their hands on the money and make themselves richer by gambling with it in the stock market. They see this as an opportunity to make money -- not as money kept in a safe government account to be used when a person retires. And they really don't care what happens to retirees as long as they can use that money to get richer.

Let's examine a few facts about Social Security -- facts that the Republicans would rather you didn't know:

* Social Security is not the reason for the huge government deficit. In fact, you could completely abolish Social Security and it wouldn't erase a single penny from the deficit. That's because Social Security payments do not come out of general funds (like defense and many other programs).

* Social Security is completely paid for out of a payroll tax (FICA tax) that amounts to 6.2% of an employees wages (and an equal amount from the employer) -- although that employee deduction has been reduced to a little over 4% for this year alone (2011). This tax is heavier for the working and middle classes because the tax is only paid on the first $106,800 of income. The unfairness of this is illustrated by the following figures:

% OF INCOME PAID TO SOCIAL SECURITY FUND
Making under $106,800 -- pays 6.2% of total income
Making $250,000 -- pays 2.65% of total income
Making $500,000 -- pays 1.32% of total income
Making $1,000,000 -- pays 0.66% of total income
In other words the more a person makes, the smaller portion of their income that's taken out to pay for Social Security.

* Social Security is not going broke. There is a surplus in the Social Security Trust Fund that assures that full payments can be made to retirees until at least the year 2027. Even after that year payments can be made of at 75% of a full payment for many more decades. A small, not radical, change to the system can assure full payments for many, many years into the future.

* It is not necessary to reduce benefit payments or raise the retirement age to "save" Social Security. Simply raising the amount of income subject to the FICA tax (or abolishing any cap on the income subject to the tax) would keep Social Security solvent far into the future.

* Social Security will be around and available for our children and grandchildren (and many more generations) if we simply raise the amount of income subject to the FICA tax -- and it would not involve working and middle class workers paying any more than they currently pay.

* It is not necessary to stop or reduce the cost of living adjustments (COLA) to Social Security recipients to keep the program solvent.

* The large numbers of baby boomers will not destroy the Social Security program, as long as the amount of income subject to FICA tax is adjusted -- and that is the only change needed.

Don't let the repeated lies by the Republicans fool you. Social Security is not is near as much trouble as they would have us believe. They just want to get their greedy hands on all that money. Don't let them. And tell them to stop the lying.