Reply to What Would You Be Willing to Do to Save SS?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If social security is not a pyramid scheme then you should have no issues with people opting to invest 6% elsewhere[/quote]

That doesn't follow. Social Security isn't a pyramid, but it is a pay-as-you-go scheme, meaning that cash out = cash in. Take away half the revenues by letting people put 6% somewhere else, and suddenly the system can't pay promised benefits to current retirees, let alone to future retirees.[/quote]

Correct, but it also has a pre-paid fund for baby boomers that will run out just as baby busters start to retire.[/quote]

You mean the trust funds. We can thank Reagan and Greenspan for that. Yes, it runs out in 2034. But as others here have pointed out, SS will still be able to pay 75% of benefits from incoming FICA taxes. That's how a pay-as-you-go system works, or at least works 3/4 of the way. As others starting with OP have also pointed out, it doesn't take all that much in the way of reforms to taxes or benefits (a balanced package would be nice) to make the system 100% funded after 2034.[/quote]

That is right - if there is no cap on income subject to SSA taxes, there should be no deficit for the program. It is a tax, not a piggy bank.[/quote]

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