Jeb Bush amazes me (UPDATED WITH NEW INFO - CHECK IT OUT!)

[Samantha]

35. Here is the problem, MisterP

There is a huge Social Security Trust Fund of about 2.8 trillion dollars. These dollars were accrued over time as a result of the early 80's compromise. That negotiation increased the FICA withholding on participants in order to shore up a fund that would cover retirement monies when the onslaught of Babyboomer retirements started. Once that was over, things would go back to "normal" -- so it was reported. In the aftermath of that agreement, the Babyboomers not only paid the retirement of the generation ahead of us, we prepaid our own retirement. We are the only class which has funded two sets of retirements.

For some reason or another, politicians thought it would be okay to "borrow" from this fund. And so they did, leaving government bonds as IOU's. Now that the time has come that those funds are desperately needed, the government cannot withdraw from that account without selling a like amount of treasury bonds. In this economy, that is difficult to do.

Add to that that some very wealthy businessmen do not like paying FICA taxes because it cuts into their bottom line and you have the reason for hearing that Social Security is going broke. The truth of the matter is that Social Security has been looted by Uncle Sam but for some reason, people are reluctant to say that....

Abolishing Social Security might make that debt evaporate. If not that, cutting it would certainly help.

Sam