Top Five Republican Social Security Lies
Have you heard that Social Security is
going
bankrupt? Driving up the deficit?
In crisis? Well none of that
is true. These are all myths that Republican opponents of Social Security
have been spreading to scare people into accepting benefit cuts
this fall. But the myths are taking hold — so here's
a list of the top five Republican lies about Social Security, along with
the real story. Can you check out the list and then share it
with your friends, family, and coworkers.
Lie #1: Social Security is going
broke.
Reality: There is no Social Security
crisis. By 2023, Social Security will have a $4.6 trillion
surplus (yes, trillion with a 'T'). It can pay out all scheduled
benefits for the next quarter-century with no changes
whatsoever.
1. After 2037, it'll still be able to pay out
75% of scheduled benefits—and again, that's without any changes.
The program started preparing for the Baby Boomers' retirement
decades ago.
2. Anyone who insists Social Security is
broke probably wants to break it themselves.
Reality: This is a red-herring to
trick you into agreeing to benefit cuts. Retirees are living
about the same amount of time as they were in the 1930s. The
reason average life expectancy is higher is mostly because many
fewer people die as children than they did 70 years ago. What's
more, what gains there have been are distributed very
unevenly—since 1972, life expectancy increased by 6.5 years for
workers in the top half of the income brackets, but by less than
2 years for those in the bottom half. But those intent on
cutting Social Security love this argument because raising the
retirement age is the same as an across-the-board benefit cut.
Reality: Social Security doesn't need
to be fixed. But if we want to strengthen it, here's a better
way: Make the rich pay their fair share. If the very rich paid
taxes on all of their income, Social Security would be
sustainable for decades to come. Right now, high earners only
pay Social Security taxes on the first $106,000 of their income.
But conservatives insist benefit cuts are the only way because
they want to protect the super-rich from paying their fair
share.
Lie
#4: The Social Security Trust
Fund has been raided and is full of IOUs
Reality: Not even close to true. The
Social Security Trust Fund isn't full of IOUs, it's full of U.S.
Treasury Bonds. And those bonds are backed by the full faith and
credit of the United States. The reason Social Security holds
only treasury bonds is the same reason many Americans do: The
federal government has never missed a single interest payment on
its debts. President Bush wanted to put Social Security funds in
the stock market—which would have been disastrous—but luckily,
he failed. So the trillions of dollars in the Social Security
Trust Fund, which are separate from the regular budget, are as
safe as can be.
Lie
#5: Social Security adds to the
deficit
Sources:
1."To Deficit Hawks: We the People Know Best on Social Security," New Deal 2.0, June 14, 2010 , www.moveon.org/r?r=89703&id=22136-299027-CGOz1Kx&t=4
2. "The Straight Facts on Social Security," Economic Opportunity Institute, September 2009 www.moveon.org/r?r=89704&id=22136-299027-CGOz1Kx&t=5
3. "Social Security and the Age of Retirement," Center for Economic and Policy Research, June 2010 www.moveon.org/r?r=89705&id=22136-299027-CGOz1Kx&t=6
4. "More on raising the retirement age," Washington Post, July 8, 2010 http://www.moveon.org/r?r=89706&id=22136-299027-CGOz1Kx&t=7
5. "Social Security is sustainable," Economic and Policy Institute, May 27, 2010 www.moveon.org/r?r=89707&id=22136-299027-CGOz1Kx&t=8
6. "Maximum wage contribution and the amount for a credit in 2010," Social Security Administration, April 23, 2010 ssa-custhelp.ssa.gov/app/answers/detail/a_id/240
7. "Trust Fund FAQs," Social Security Administration, February 18, 2010 www.ssa.gov/OACT/ProgData/fundFAQ.html
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