The Decline of the United States

The BS the MSM reports on SS

I just watched a You Tube video about SS which purported that SS is now paying out more than it’s taking in from taxes.  Further, the difference is being made up from internal government IOUs owed to the taxpayers.  And as we all know there is no cash reserve to do this.  Which means that any money needed to pay SS recipients is really being paid by current Federal Income Taxes or by deficit spending.

The program I just watched reported that the government IOU's will app be paid back to the SS Administration in 2034. At that time SS recipients will be required to take a 28% reduction in their SS payments. Why? 

The government has been paying out more in SS benefits than it takes in in SS Taxes since 2009. So why in 2034 are they proposing to reduce benefits by 28%?  Because to create the illusion of fiscal responsibility the Federal Government has been using the SS Trust Fund to reduce amount of Federal Income Tax income spent by Federal Agencies.  Thus, reducing the need to either raise Income Tax or borrow more money.

I have no idea of the total payout of SS is but in 2034 it apparently will be 28% more of them they take in from SS Taxes.  This means that the 28% the Federal Government has been subsidizing SS payments from Federal Income Tax will be available to the Congress to spend elsewhere.