Do you think the government could and would default on Social Security payments, and say "sorry there's no money to pay it out."?
2007-10-18 12:05:09 · 11 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Legally no. Social Security was a promise made to the American people. If you pay in you should be able to take out, otherwise it is theft, and that is illegal.
2007-10-22 10:04:42 · answer #1 · answered by Penny K 6 · 0⤊ 0⤋
Sorry you probably did no longer hear approximately this quicker, however the Republicans and Democrats voted to make Social protection have confidence Fund a factor of the final fund, interior the 70's. this implies they have been spending each contemporary and previous SS tax for the reason that then on contemporary and previous budgets. the only factor left interior the have confidence fund is scraps of paper that say IOU. additionally you will have neglected a court docket determination from the 80's, that ruled in result that a Social protection income is an allocation from the government and not a return on investment. meaning your SS verify is what government decides to grant you and would not ought to pay off what you paid in taxes. bear in mind, government isn't severe high quality and would not play honest because of the fact they get to place in writing the regulations. If those SS money were privatized human beings might have had a declare of possession for those money. because it fairly is, you in basic terms stand there along with your hand out and want that they supply you a number of your funds decrease back before the fund is going broke.
2016-12-15 03:24:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is technically possible.
But lets be realistic, politically they couldn't.
Social Security will never be 100% broke, because they will always have people paying into SS.
The problem is, when SS started, there were 15 people paying into the system for everyone collecting benefits.
Today there are 5 people paying into the system, for everyone collecting benefits.
It is estimated that by 2050, it will be only 3 people paying into the system, for everyone collecting benefits.
There are a couple of things that can be done to extend the time, before SS must start cashing in the US Treasury Bonds the SS surplus is invested in.
1. Raise the retirement age
2. Decrease benefits
3. Increase the SS payroll tax
4. increase the maximium income that has to pay SS tax's.
Those things were done in the 1980's to give SS another 40 years breathing room.
They will probally be done again.
2007-10-18 12:20:39 · answer #3 · answered by jeeper_peeper321 7 · 2⤊ 0⤋
It is most unfortunate that over the years congress has borrowed( taken) money from the Social Security fund to make the numbers look better on their submitted budgets. Democrats & republicans alike have robbed the SS fund. The SS fund would be solvent for 100 years if not for the constant removing money from that account. I would venture to say that the amount taken numbers in the billions. Our elected reps have screwed us over many, many times in many, many ways. Think about this; their SS fund is not part of the general SS fund. Their monies are kept separate. Nothing like taking care of yourself at the expense of others. Will they default? No. They will continue to raise the age limit & cut the benefits. But not on their own accounts.
2007-10-18 14:21:44 · answer #4 · answered by peepers98 4 · 2⤊ 0⤋
Every year Social Security takes in $78 million more than it pays out. Yet they are claiming low funds. If they were not violating the spirit of the law establishing Social Security, this would not be the case. What I want to know is when somebody is going to do something to force them to actually dedicate Social Security money to Social Security?!
2007-10-18 12:23:02 · answer #5 · answered by mommanuke 7 · 2⤊ 0⤋
ok.... here's what is going to happen... like it or not...
two senarios:
A. the SS funds get low, politicans ignore it... it defaults... and in the next election, EVERYONE will be thrown out and replaced with people who vow to fix it... since old people vote more than anyone, and no one likes to be sold a program that doesn't work...
B. they see the writing on the wall and fix it before it defaults...
either way... my money is probably on A.
2007-10-18 12:17:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The government routinely takes the money paid into SS and siphons it off into other areas. Yes, there is definite possibility that the fund can go broke.
2007-10-18 12:17:52 · answer #7 · answered by Anonymous · 2⤊ 0⤋
Tony, it is going to happen sooner than you think.
Money is taken out of funds ear marked for Social Security, by congress on a daily basis.
Sooner or later, there is going to be an empty account.
2007-10-18 12:12:31 · answer #8 · answered by Bubba 6 · 4⤊ 1⤋
If something isn't done to reform it, yes that will happen.
2007-10-18 12:10:46 · answer #9 · answered by smsmith500 7 · 2⤊ 2⤋
You bet they can, and someday they probably will.
2007-10-18 12:08:08 · answer #10 · answered by Hirise bill 5 · 1⤊ 2⤋