Social Security and the Deficit

The Deficit Commission had no business even thinking about Social Security, because Social Security does not contribute to the Federal Deficit and cannot contribute to the Federal deficit!

Social Security is funded only by the payroll tax, which appears on many pay stubs as FICA. Employers pay half and employees pay half; those who are self-employed pay all of it.

Social Security is not allowed to pay out more in benefits than it has in cash, and the government is not allowed to use the Social Security Trust Fund for any other purpose. Right now Social Security has a surplus. That's real money.

Someday in the future, supposedly in 2037, the Social Security Trust Fund could run out of money. Under existing law, if that happens, benefits will be reduced to the amount that Social Security is then receiving in payroll taxes. That's a problem that needs attention, but it has nothing to do with the Federal deficit.

Cutting Social Security won't do anything to relieve the Federal deficit.

http://www.huffingtonpost.com/brad-miller/does-social-security-have_b_782734.html

http://www.tnr.com/article/politics/79093/deep-six-the-deficit-commission-report