To maintain social security benefits after 2016 will require an escalating tax on workers that is untenable: $103 the first year rising to $1545 more per worker just 28 years from now , just to break even.
Eighteen months ago, this column considered problems of the U.S. Social Security system. The only thing that happened in the interim is the national pension system is a year and a half nearer collapse, young people can expect a yet lesser return on tax payments due to delay in privatizing accounts, a savings plan to create personal wealth is still illegal and the citizenry has endured more lies and incompetence from Congress control freaks over the duration. Slick Willie even got it right not long before leaving town when he said (27 July 1998) that to restore solvency there are only three options: raise taxes, cut benefits or get a higher rate of return through investment in real capital assets, not government bonds. That raises an issue about the Social Security Trust Fund: there is none! Government bonds are liabilities and not assets. As columnist Martin Gross asked, If Social Security (SS) has assets in some trust fund, tell me the name of the bank with the deposits.