54 bn DT wants to shovel into military money pit equals more than 75% of annual SS/Medicaid deficit.

[pat_k]

We shovel around 600 billion a year at the U.S. military. That doesn't include the money we put into waging war. It is an ever growing money pit. It sucks up a lion's share of the discretionary budget.

DT wants to boost the size of the army.

Inexplicably, the so-called "leaders" in the military are apparently incapable of doing what every leader must do: set priorities and propose rational reallocation of funds from low priority military budget items to meet higher priority goals.

DT apparently wants to spare those so-called leaders from having to put their pretty little heads to good use by just shoveling another 54 billion into the military money pit.

So much for being the "tough guy" he proclaims he is.

At the same time, the GOP blathers on and on about how we "can't afford" to keep SS/Medicaid solvent. How we MUST cut, cut, cut, cut, cut.

The 54 billion DT wants to shovel into the military money pit would cover more than 75% of the projected annual SS/Medicaid deficit.

If, instead of boosting military budget by about 10%, we decreased it by about 10% and shifted that descretionary spending into SS/Medicaid, the program would start running an annual surplus of close to 50 billion.

SS must be self-sustaining you say?

Fuck that. Pass whatever laws are necessary to reduce the military budget by 10% and supplement SS/Medicaid from discretionary funds. We'd rather defend ourselves against having to step over homeless elders. Yeah, it means the program won't be 100% self-sustaining, but WE THE PEOPLE want SS/Medicaid preserved.

On edit: Clarification: Shift could be through distribution of cut military budget via worker tax credit, and addition of "preservation" fee to SS tax in an amount equal to projected worker tax credit.

I have no doubt that, when confronted with the options: 1) burden you kids with a bigger bill, 2) cut benefits, or 3) supplement by shifting 10% out of the military money pit into SS, a vast majority of Americans would say, "We'll take number 3. Now. Do It Now."

https://www.ssa.gov/oact/trsum/

...
Over the program's 80-year history, it has collected roughly $19.0 trillion and paid out $16.1 trillion, leaving asset reserves of more than $2.8 trillion at the end of 2015 in its two trust funds...

The Trustees project that this annual non-interest deficit will average about $69 billion between 2016 and 2019...

[Wounded Bear]

1. They're starting up the old bullshit about "entitlements are ruining the budget"...

[smirkymonkey]

2. K&R

[yeoman6987]

3. Social security is self funding

Couldn't put that 54 billion in social security even if we wanted to. Even democratic presidents wouldn't.

[progree]

6. Obama gave us a 2% payroll tax holiday -- that 2% (of wages) was made up for from the general fund

Last edited Tue Feb 28, 2017, 08:59 AM - Edit history (3)

It only lasted 2 years though.

Details - instead of workers paying the usual 6.2% SS taxes, for 2 years they paid only 4.2%. Thus workers got to keep 2% more of their income (this was part of the stimulus). Meanwhile that was money that was NOT going into SS trust fund or going out to pay SS benefits as in the past. However, Obama made up for the shortfall with money from the general fund. So the SS trust fund had and has the same amount in it as it would have had without the partial payroll tax holiday.

As for self-funding, it's complicated -- SS payroll taxes are insufficient to pay SS benefits, and have been since 2010. Fortunately the SS trust fund (the accumulation of surpluses from several decades when SS payroll taxes exceeded SS benefit payments, now totaling $2.8 trillion) is earning enough interest to make up for the shortfall. That will no longer be the case in about 2019, and then the SS trust fund bonds will have to be redeemed over the following years, a process that is expected to end with the projected 2034 trust fund exhaustion date. After that, SS payroll taxes will be able to fund about 3/4 of SS benefits through 2090.

It's money from the general fund that pays the SS trust fund interest, and it is money from the general fund that will be used to redeem the SS trust fund bonds. So SS will be an ever increasing draw on the general fund.

For decades, the general fund has borrowed money from Social Security and spent it on general non-SS expenditures such as the military. But now, since 2010, the general fund is in the process of paying that borrowed money back to SS. And yes, that net expenditure by the general fund has to come from somewhere -- higher income taxes, less spending, or higher deficits (selling bonds to the public).

To be clear: Social Security did not cause or add to our deficits or national debt. In fact, its surpluses helped fund the rest of the government for decades. Rather, it was the general fund borrowing the SS surpluses that added to our deficits and national debt.

https://www.ssa.gov/oact/trsum/

[pat_k]

9. I think the upshot is that there are always ways to...

... effectively shift funds from discretionary to SS. Could funnel through ordinary federal "tax credit" on one side and corresponding increase in SSI on the other.

It may be silly, but I posted a proposal in post 7 below:
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=8720384

[pat_k]

7. Easy peasy.

Pass something like the following "Military Competitiveness and Social Security Preservation Act" that

1) cuts 50 billion from military budget;

2) funds a "Military competitiveness and efficiency" committee that is given the mandate to prioritize and identify 80 billion in non-productive and low-priority programs within 8 months;

3) mandates termination of the low priority and non-productive programs identified by the committee;

4) puts in place an "appellate body" with the authority to review cut programs on appeal, and if a compelling case is made for preservation, the appellate body can order the program be preserved (appellate body limited to preserving programs with combined budget under 20 billion);

5) distributes 50 billion in worker tax credits;

6) adds "SS preservation fee" to amount paid in SS tax. Fee is equal to projected worker tax credit;


Where there is a will, there is ALWAYS a way. This is our government an it's up to us to find ways to make it work for us, and to generate the political will to make those things happen.

[progree]

4. I believe the two trust funds referred to are the OASI and DI trust funds -- both part of SS

and none of that has anything to do with Medicaid (or Medicare either). Just a minor correction. You make a great point.

[pat_k]

8. Thanks for the clarification.

I need to read with more attention to detail.

[Kimchijeon]

5. ugh what utter bullshit

And so stupid too, all those GOP voters on SS/Medicare/Disability etc. Then again I guess if they were dumb enough to vote for him they might vote GOP again and blame "liberals" if programs get cut. Dummies.

[jalan48]

10. We're going the way of ancient Rome, bankrupting the country with endless wars.

Meanwhile, citizens are mesmerized by their media devices and defense contractors become obscenely wealthy.