Political Quotes

“What I would like to do is try to explain why this debate will have a negative effect on Social Security. Currently, the Federal government does not have enough money to run its day to day operations. There are many reasons for this, including: a decline in the economy, a reduced tax revenue, the burst of the stock market bubble, and the President's $1.7 trillion tax cut from last year. In order to meet its obligations, the government borrows money. Much of the borrowing comes from the Social Security and Medicare trust funds, since it currently takes in more money than it pays out in benefits. So the government writes an 'IOU' for the trust fund and uses the money to pay for its operations. Currently, this is not a big deal. However, beginning in 2017, Social Security will pay out more than it takes in. In 2041, the trust funds' reserves are exhausted--in other words there is no more money to pay full benefits. The money the Federal government takes in will only pay for 73 percent of benefits.”