Greenville News
09/22/2011
Letter: Obama's Plan would hurt Social Security
Congress to cut payroll tax contributions to Social Security by $240 billion in year 2012. His proposal suggests that the $240 billion lost in Social Security payroll tax contributions would be replenished by money from the federal budget. Does he think the American people are not capable of figuring out what he is proposing?
His proposal will force our government to borrow even more money from China to pay retirees’ Social Security and will further increase our federal debt. Social Security has always been a self-funded insurance program since the first payroll taxes were collected from workers payroll in 1937 that were designated for retirees, disabled and their survivors.
President Obama is proposing, for the first time since 1937, that Social Security will be paid for with general funds from the U.S. Treasury. This will not only undermine the revered status of Social Security as having been a program that is self-funded, but it also undermines the program by putting Social Security in competition for federal dollars at a time that we already have a $14.7 trillion national debt and growing exponentially everyday.
In essence, President Obama is proposing that for the first time we sidestep the self- funding of Social Security. If his proposal is approved by Congress, it will undermine the whole Social Security System for retirees in the future, and will set the precedent for future presidents and Congress to trim Social Security benefits for retirees.
Last year Social Security paid out $49 billion more than we collected in payroll taxes, and it was the first time that there was a deficit since 1983.
We all know that we have to make changes to fully fund Social Security for future retirees, such as was done to offset the deficit in 1983 when the retirement age was gradually increased and payroll taxes were adjusted. However, this proposal by President Obama will undermine the future of Social Security and should not be passed.
Bruce Chambers
Simpsonville, SC
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