Re:The frequent fliers who flew too much
by guelo on Monday May 07, 2012 @05:24AM
(#3938291)
If USA government "IOUs" are worthless you better tell market traders who consider them one of the safest investments out there.
[ Parent
| on HN ]
The treasury bills owned by SSA are special non-marketable ones that are only sold to the SSA. They do not have any market value.
I have no opinion regarding the solvency of social security.
What this critique amounts to is saying that the US will always honor its commitments to the market but not to it's tax payers. But why would that be? Are the financial elite more powerful than millions of retiring voters? Social Security taxes were raised in 1983 with the expectation of the baby boomers retiring 30 years later. But in those 30 years the surplus SS money was used to paper over deficits caused mostly by tax cuts on the top income percentiles. In effect the wealthy have raided the fund, but now they are wealthier than ever and we should hold their feet to the fire to pay the money back.
But in those 30 years the surplus SS money was used to paper over deficits caused mostly by tax cuts on the top income percentiles.
This is getting way off topic, but the lower and middle class portions of the Bush tax cuts, for example, contribute way more to the deficit than those for the upper class. And your claim doesn't really square with the trend of more % of all income taxes being paid by the top percentiles over time.
Well of course they are paying more taxes, they are earning way more money.