The Dems and Their Monkey:

 A few days ago eight obstructionists and a bag of hot air masquerading as a giant monkey appeared outside Lafayette’s Federal Courthouse.  They were there to oppose meaningful plans to strengthen Social Security.   I can’t imagine a better picture of today’s ultra-left Democrat Party than eight protesters gleefully exhibiting a fake object containing no more substance than hot air.

 

This comedic charade was also a perfect example of the Democrat’s “hollow” argument opposing a taxpayer’s “right to choose” the best financial plan for themselves and their family.  The “crowd of protesters”, all eight of them, continue to insist that the Social Security trust fund is solid, strong, and self supporting – just like their monkey.

 

Social Security will begin to have annual deficits by 2017.  We’ve known that since the 1980’s.  The Social Security “trust fund” was established to make up that shortfall through 2041 by placing “in trust” all payroll tax revenue in excess of that needed to pay current benefits.  However, our federal government has been spending our trust fund taxes on general fund expenditures as soon as they are received.  As these proceeds are spent on non social security benefits IOU’s are placed in the “trust fund”.   Beginning in 2017 when the trust DOLLARS will be needed to pay benefits, the federal government will have to replaced the IOUs with CASH.

 

 In order to do that there are only three sources available to acquire the cash:

1.      Borrow the money by issuing bonds or T-bills.  These will then have to be paid from ADDITIONAL tax revenue from those who already paid for the benefit.

2.      Immediately raise taxes to replace the money that was spent on non social security benefits – again, double taxation.

3.      Eliminate the benefit that would have been paid with the tax dollars that were previously paid.

That’s it, those are the only options.  By the way, those are the same options available if there had been no “trust fund” taxes paid at all.

 

President Bush has a real plan to provide real dollars to real people.  Under his “right to choose” plan, you have the OPTION to place some of your tax dollars in an account that only you have the key to.  Or, if you “choose” you can remain entirely in the current plan.

 Of course there is always the Dems and their monkey if you are not into reality.

 Charlie Buckels