Reports are being floated that even Social Security – for some unfathomable reason – might be on the table in the ongoing debt ceiling and deficit negotiations. On its face, it is impossible that Social Security has anything to do with either the debt ceiling or the deficit. Social Security is funded by a dedicated revenue stream (our payroll taxes), and its trust fund is “off-budget” and treated separately from the rest of federal spending.
Moreover,
Social Security is a defined benefit pension plan sponsored by the federal government, financed primarily with dedicated contributions of workers matched by their employers. Social Security has no borrowing authority and so does not and cannot contribute to the federal deficit. And it will be in balance for the next 26 years, even with no policy changes. (emphasis added).
The American Prospect
But, of course, that isn’t the whole story. The rest of the story is that after 30 years of subsidizing the wealthiest Americans with the payroll taxes paid by the poor and the middle class, the bill is about to be presented and wealthy Americans don’t really want to pay that bill. Of course, if they are allowed to skate on this it will be the greatest transfer of wealth from the poor and the middle class to the rich in the history of . . . well, forever, but is there any doubt that the odds are with the wealthy on this one?
