Social Security isn’t problem with budget
Almost without fail, every time you hear the name Social Security mentioned by either a news broadcaster or disillusioned member of Congress, it is in connection with the debt and Medicare.
Here are the facts: Social Security has absolutely nothing to do with the debt, but adds to the sate of the economy. It adds to the economy because most people who draw on their Social Security Savings Account spend it to live on.
The Social Security Fund is not part of the budgeting process. It is a stand alone program managed by — or in some cases, mismanaged by — those we elect to serve us.
This program’s problems began when the federal government started borrowing money from the fund instead of properly taxing those who benefit most from tax loopholes to pay for their favorite programs or war.
A cap on an individual’s income excludes everyone with salaries to above $106,000 per year. Effective Jan. 1, 2012, the cap will rise to $110,100.00. This increase is due to the rise in the average yearly wage for 2011.
Look to Wall Street and corporate officer wages to continue to increase this number. That may be the only thing with which they have helped us.
The law also has set in place a cap on the amount of the monthly payment to an individual from the fund. This cap is based on his/her average yearly income.
So, when you next hear a legislator include “Social Security” in federal budget cuts, know you’re being led down a “garden path” of misinformation.
Still in doubt? Call Social Security, 1-800-772-1213.