August Social Security Never At Risk

Don't believe Barack Obama when he leaves you with any thought that there is even the slightest risk that seniors may not get their current Social Security checks.  He couldn't stop them if he wanted to.  The risk checks may not go out is absolutely zero and I'll tell you why. First of all, the Social Security program is a source of net income to the government, not an expense.  The income is from the payroll tax, not income tax.  Current receipts from the payroll tax have always been more than needed to pay the current retirees.  On a cash flow basis, the Social Security program runs at a surplus.  The surplus finds its way into the general fund and helps to pay for all the other government programs. Social Security is at long term risk precisely because the Treasury Department takes the current cash flow surplus as income rather than setting that money aside to fund payments in the future when the surplus is forecast to turn negative. Secondly, the...(Read Full Post)