In an article entitled Social Security key to state’s fiscal fitness, Rep. Chris Chocola implies that the U.S. Government is going to default on its Treasury Bills. Social Security is only a dramatic concern if one assumes that the U.S. is going to default on Treasury Bills which are part of the Social Security Funds assets. The U.S. general fund has been drawing on Social Security funds (taxes that fall more heavily on the middle class, by the way) and issuing IOUs to the Social Security fund.
Chocola:
Rep. Chris Chocola, the only Indiana congressman who serves on a committee that will be writing any Social Security legislation, said lawmakers need to act soon because benefits being paid out are expected to exceed tax money going into the fund in
2018. Chocola, a Republican, has been a supporter of Bush’s proposal to let workers divert some of their Social Security taxes into private investment accounts.
That 2018 date is only a problem if the U.S. is going to default on the IOUs it’s been writing to the Social Security fund so as not to have to raise general taxes (which fall more heavily on the wealthy than do Social Security taxes).
Maybe I’m cranky ‘cuz I’m sick. I’ll post more on the General Assembly when my nose stops running like a faucet. I swear my little boy is genetically engineered to transmit disease to me.
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