Political Quotes

“This represents the bleak future of Social Security. Because of the substantial tax increase on American workers, the FICA tax increase in 1983, there is now more money coming into Social Security than is needed to pay out benefits. And again a reminder that Social Security is a pay-as-you-go program. Current workers pay in their tax and it is almost immediately sent out to current beneficiaries. Because of the tax increase in 1983, an extra surplus is coming in from the higher tax. After 2015, we go into a bleak future of somehow coming up with the funding necessary to pay benefits. Let me just comment on this short term surplus. During this surplus over the next 10 years, there is going to be $7.8 trillion. I know this gets into statistics but bear with me. In the next 10 years, there is going to be $7.8 trillion coming into the Social Security; $5.4 trillion is going to be used to pay benefits. That leaves a surplus over the next 10 years in Social Security of $2.4 trillion. Governor Bush has suggested that we take $1 trillion out of that $2.4 trillion and use it as a transition to set up personal retirement savings accounts.”