Tags: Social Security | David Asman | Fox Business | retirement

Fox's Asman: Social Security Gets Raided to Pay for Government Programs

Fox's Asman: Social Security Gets Raided to Pay for Government Programs

(Dreamstime)

By    |   Tuesday, 31 January 2017 11:51 AM

The promise of Social Security is that a worker pays into the system over a lifetime of work with the promise of getting a steady payment in retirement.

The government is breaking that promise by raiding Social Security to pay for other programs, writes David Asman, a host on the Fox Business channel.

“Last April President Obama signed into law (with bipartisan support!) something called the ‘Doc Fix,’” Asman says in a blog. “Politicians sold the plan as a smart way to help pay for low income Medicare recipients and children who did not have access to health care.”

The Doc Fix is now costing his parents about $6,000 a year, Asman says, after consulting with his parents’ bookkeeper.

His parents reported higher income last year after selling some stock to pay for medical expenses. That higher adjusted gross income meant cuts to this year’s Social Security payments.

“My parents aren’t the rich people the ‘Doc Fix’ was designed to hit. They didn’t really make a lot of money last year,” according to Asman. “They might have appeared wealthier on paper, but in reality the money they ‘made’ was used for elderly care expenses."

Asman says the U.S. government is breaking its promise to retirees with a welfare-redistribution plan that isn’t transparent to Social Security recipients.

“To pay for a dubious government program by taking money out of Social Security checks is both callous and dishonest,” he says. “Your Social Security account is a promissory note from the government that they are supposed to honor for life.”

Social Security will run out of money by 2034, according to official estimates that don’t include the negative effects of a recession between then and now.

The retirement program has a looming $11 trillion shortfall facing President Donald Trump, whose administration hasn’t revealed a strategy to address the entitlement time bomb.

Trump has said he will preserve Social Security, “though if he and Congress do nothing to fix the funding, the financial reckoning will be huge — as much as $11.4 trillion down the road,” CNBC reported.

The last time Congress changed Social Security in a significant way with a series of benefit cuts and payroll tax increases was in 1983 under President Ronald Reagan, according to the business news network.

"Just to keep the system afloat from year to year at that point they would have to inflict near-term pain over three times as severe as was the case in 1983," Charles Blahous, a senior research fellow at George Mason University's Mercatus Center, told CNBC.

Congressman Sam Johnson, an 86-year-old Texan who represents the Dallas suburbs and is chairman of the House Ways and Means Social Security Subcommittee, unveiled a bill in December in the last Congress that aims to fix the program without raising payroll taxes.

Johnson's proposal would increase the age to receive full retirement benefits from 67 to 69, slow the growth of benefits by using a different measure of inflation for cost-of-living adjustments and cap payouts to high-income workers.

"I urge my colleagues to also put pen to paper and offer their ideas about how they would save Social Security for generations to come. Americans want, need and deserve for us to finally come up with a solution to saving this important program," Johnson said in a statement.

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The promise of Social Security is that a worker pays into the system over a lifetime of work with the promise of getting a steady payment in retirement.The government is breaking that promise by raiding Social Security to pay for other programs, writes David Asman, a host...
Social Security, David Asman, Fox Business, retirement
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2017-51-31
Tuesday, 31 January 2017 11:51 AM
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