Half of the US government's financial assets are student loans

Re:Half of the US government's financial assets are student ... by georgeecollins on Friday January 12, 2018 @06:08PM (#16137106)

" The Board of Trustees of Social Security tells us that the program is going to completely run out of money within the next 15 years. " Is very misleading. Social Security is not a bank account, it is an insurance (you can get it at any time, and you get it simply because you paid in) where people are constantly paying in and out.

In 17 years* the Social Security system will probably have to cut benefits by 23% unless we either raise the retirement rate or raise the maximum salary at which you have to pay social security tax. The latter is a pretty painless thing to the average tax payer, who already has all their salary subject to social security tax.

The social security system was in much greater danger in the Reagan era, when they decided to make benefits taxable, which was ultimately a progressive way to reduce benefits.

*http://money.cnn.com/2017/07/13/news/economy/social-security...

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Re:Half of the US government's financial assets are student ... by TheSpiceIsLife on Friday January 12, 2018 @06:25PM (#16137187)

I don't understand why there is a max income threshold for social security tax.

Can anyone explain this to me?

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Re:Half of the US government's financial assets are student ... by mobilefriendly on Friday January 12, 2018 @07:07PM (#16137412)

It was conceptualized as a universal safety net pension program, not a welfare program or progressive redistribution program.

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Re:Half of the US government's financial assets are student ... by mpwoz on Friday January 12, 2018 @06:45PM (#16137305)

Presumably because over a certain threshold, you're paying far more than you'd ever expect to receive back from the program in retirement?

Not saying I agree with it but that's my guess as to the reason.

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Re:Half of the US government's financial assets are student ... by 0xffff2 on Friday January 12, 2018 @06:26PM (#16137194)

I assume you actually mean "raise the retirement age"? Raising the retirement rate would mean paying out more money, not less.

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Re:Half of the US government's financial assets are student ... by georgeecollins on Friday January 12, 2018 @08:21PM (#16137715)

Right sorry, raise the retirement age. Which is not good for people, but fits with the idea that people are living and working longer in general.

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