Letter: Funds dedicated to Social Security
Friday, July 1, 2011
The editorial cartoon published in The Columbian on June 26 makes the case that Social Security bears some responsibility for the need to increase the federal debt ceiling and that cutting the benefits would somehow help the situation. Nothing could be further from the truth. This is just another big lie spread by those who are opposed to all social programs.
Social Security is a completely separate system, funded entirely by the FICA payroll tax. Cutting benefits would do nothing to help the federal deficit because, by law, FICA funds can’t be used for any other purpose. The system has a trust fund from surplus funds collected during good years which it taps to make up for any shortfall in current tax collections. That trust fund will last for at least 25 more years before any crisis occurs. Even Medicare contributes little to the federal deficit because it too is primarily funded by dedicated income streams that can’t be used for any other purpose.
For the real story, view this YouTube video.
Thomas Scharf, Vancouver