Why Does Washington Not Have A Plan?
The voters haven’t required one.
People, who say that Washington is kicking the can down the road, misunderstand the problem. When you kick a can, the can doesn’t grow in size. We aren’t kicking the can down the road, we are rolling the snowball down the hill and the snowball continues to get bigger.
What Is The Role Of The Social Security Trust Fund In Paying Benefits?
The Social Security Trust Fund pays benefits when expenses exceed payroll taxes revenue. The Trust Fund is a cushion for times when the payroll tax collection is lower the needed. In 1983, the Trust Fund reached zero, at which point Congress raised payroll taxes to reestablish the cushion. Since then, we have only used interest on the bonds to cover any short falls.
Even at 2.7 trillion, the Social Security Trust Fund is basically economic parsley. Without the support of payroll taxes, the Trust Fund would be exhausted in about 3.5 years.