Extending the Payroll Tax Cut

[dellinger63]

Isn't this simply the equivalent of reducing your IRA/401K contribution, converting it into spending money and putting part of the payment for your healthcare policy on a credit card? And if we want to help small business why in the world are they excluded from the cut? Smoke and mirrors I wish. Don't get me wrong, I'm all for tax cuts but this is far from a tax cut and is just one more example of complete lack of fiscal responsibility. The solution to the deficit problem, nearing Greece in regards to GDP, isn't that difficult and certainly a payroll tax reduction, the equivalent of stealing from SS isn't the answer.

SS is in far more trouble than any politician is willing to admit. Using SS data from 1957-2010 http://www.ssa.gov/oact/STATS/table4a3.html the following was noted and a bit ominous:

* Not once from year to year (in 53 years) have payroll contributions ever decreased until 2008-2009 ($4.86 billion) and 2009-2010 ($29.97 billion) the first time ever interest on the account decreased was also 2009-2010.

* Despite the decreased payroll contributions received from 2009-2010 benefits paid out increased by $26.12 billion. $60 billion 2008-2009. For a total of over $86 billion in 2 years. A 12% increase or 6% per year average. Also noting never once since the start of the chart have benefits paid out ever decreased. At the rate of a 6% increase each year benefits paid out in 5 years 2016 should total just under $942 billion up $240 billion from 2010.

With the housing market crash and unemployment rates at their peak I'd suspect the loss of many retirement portfolios have put more in the position that they will rely on SS for a good portion of life in retirement. Considering the whole thought process behind SS as being a security net because privately investing in the stock market is too risky doesn't seem to jive with reducing contributions to retirement and using the money for everyday spending.

The fact, the recently downgraded US Treasury, holds the entire operation in an IOU account while acting as a investment bank ie Goldman Sachs Lehman Bros would, making loans and investments in such stellar performers as Fannie and Freddie, Solyndra, GM perhaps the IMF, etc. etc should set off alarms everywhere. In other words as a portfolio manager they suck. Social Security being in a lockbox and this plan continuing is a complete joke/ripoff.