Wednesday, July 13, 2011
How low has President Obama sunk in the debt talks enveloping Washington? So low that he’s using Chicago-style slash-and-burn politics to frighten America’s seniors and disabled about their next Social Security check.
In an interview Tuesday with CBS News’ Scott Pelly, Mr. Obama said he cannot guarantee retirees and the disabled will receive their Social Security checks on August 3 if Democrats and Republicans fail to reach an agreement on reducing the deficit.
“I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it.”
What kind of monster scares the most vulnerable in our society in order to get his way?
Here are the facts about Social Security versus Obama’s shameless falsehoods.
U.S. workers pay Social Security tax called FICA through their employers. Each month employers send a payment to the U.S. Treasury which includes all of the income taxes collected. These include Social Security and Medicare payroll taxes. Then the U.S. Treasury pays interest on the monies.
The amount of money in the Social Security Trust Fund is ever changing based on the number of U.S. workers contributing to the fund. When unemployment is low, more money is deposited into the fund. Conversely, when unemployment is high, less money is deposited into the fund.
While the amount of money in the Social Security Trust has been hammered recently by stubbornly high unemployment coupled with President Obama’s irresponsible decision to reduce the FICA tax withholding rate from 6.2% to 4.2%, the fund still has enough money to pay monthly benefit checks through at least 2037.
As of 2010, the accumulated surplus in the Social Security Trust Fund stood at just over $2.6 trillion — more than enough to pay Social Security checks on August 3 to America’s seniors and disabled.