Often congressional Republicans parrot the lie that Democrats stole the Social Security Trust Fund, and there is no money in it. While it’s true that there is no “money” in the account, What Democrats did was invest the money in T-Bills, the safest investment known to mankind, where it earns interest instead of just sitting there. It is actually included in the National Debt, reflecting the legal obligation to repay beneficiaries. So why would Republicans invent such an absurd lie? It’s because they intend to steal it themselves and want to be able to blame Democrats after they do.
Many Americans believe that their Social Security contributions have been stolen, diverted to some unauthorized purpose. They are wrong — at least for now. On Wednesday, Senators Lindsey Graham (R-SC), Mike Lee (R-UT), and Rand Paul (R-KY) proposed to do just that — steal our money.
Their Social Security Solvency and Sustainability Act slashes benefits drastically but continues to require workers to pay the same level of contributions specified under current law. Workers’ paystubs would continue to show that they were contributing to Social Security, but that would be only partly true. Workers would be contributing $6.2 trillion more than what would be needed.
Graham, Lee, and Paul propose to "borrow" those excess contributions, all $6.2 trillion worth, the way a schoolyard bully borrows — with no intention ever of repaying the money. Like schoolyard bullies, the three senators even bragged about the fraud. Their press release [Rand delinked] announcing their proposal describes "what the plan accomplishes," and lists as the very first accomplishment, "Reduces debt held by the public by $6.2 trillion by 2085." How can they reduce the debt held by the public? By "borrowing" $6.2 trillion from Social Security’s Trust Funds with no intention of ever paying as much as a penny back.
Given the outrageousness of the fraud that the senators propose perpetrating on America’s workers, it seems almost beside the point to describe how exactly these three senators propose slashing benefits, but for purposes of completeness, here is a detailed fact sheet.
Benefits are slashed so substantially, that workers would be better off if Congress took no action whatsoever. According to the most recent Trustees Report, Social Security can pay all benefits in full until 2037. If Congress took no action by that time, Social Security would still pay between 75 percent and 78 percent of the cost of all scheduled benefits through 2080 and beyond. How does this proposal compare? Here’s a chart showing how hard-working Americans are better off with no action rather than with the fraud these three Senators propose… [emphasis added]
Inserted from <Huffington Post>
The chart is the top graphic.
How much lower can these vile Republicans get?
6 Responses to “Will Republicans Steal the Social Security Trust?”
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There is a room in WVa that is full of file cabinets and each of these file cabinets is full of T Bills. I am wondering if the republicans throw the government into default would it wipe out the value of those T bills? That would be an instant reduction of the deficit by 4 trillion dollars.
That’s complicated, Mark. It does only if sold early. The market value will drop because newer T-Bills will have higher interest in that situation. However, if held to maturity, they are worth their face value, so it woul;d not reduce the debt.
That’s like askin if a cowbird will steal a nest.
…or like4 asking id a Republican politician would steal a baby’s candy.
It’s the other 3rd rail of politics; I don’t know what they are thinking. At least put T-bills in there. There should be a law that the government can’t ever touch SS funds ever, for whatever purpose. That’s the people’s money and they paid into it. It doesn’t add one dime to the deficit. LEAVE IT THE FUCK ALONE. 😡 😡 😡
Lisa, their scheme cannot work, unless they pull it off without the public realizing it.