Santorum: Trim Social Security now even if painful

[karynnj]

29. Social Security took in more than it paid at least since 1986 when they "fixed" SS

The surplus went to the treasury and SS has IOUs.

The difference in the claims depends on definitions.

1) It is true that in 2011, SS took in less than it paid out.

2) It is also true that part of the difference was paid from general funds to make up for the payroll holiday. Any additional deficit was paid out of general funds, reducing the IOUs.

If you accept that the IOUs are real, SS will NOT run out of money for decades - and with very minor changes will be good for this century!

However, some - including Alan Greenspan, who argued for the higher rates to deal with the baby boom retirement- argue that it would be too much a burden on the future generations to honor all the IOUs. Yes, Greenspan is a hypocrite. These people are the ones saying that SS is running a deficit. (In essence, if the IOUs are not real, they raised the comparatively regressive payroll taxes and used that revenue to lower income taxes - especially for the wealthiest.)

There are some in the middle who are saying that SS is solvent for decades, but who admit that under the current tax code, the payments that will have to go from general funds to SS and Medicare and the interest payment on our debt will leave very little money for any discretionary programs (most of which help the needy) They are the ones saying we need to not extend the Bush tax cuts (at least for the wealthy) and we should raise taxes.

(Not a link - but an explanation)