OPINION:
Over the next 75 years Social Security is projected to pay out $159 trillion more in benefits than it will collect in taxes. How can we ever meet that deficit? Viewed differently, it is about 2.68 percent of Social Security payroll taxes, or accounting for the time value of money, a present value deficit just short of $11 trillion. If we increased payroll taxes from 7 percent to 9.68 percent, it is a done deal.
Who pays the taxes? Your kids. You sure won’t pay that extra 2.68 percent if you are collecting. Social Security is the ultimate immoral, socialist entitlement that allows you to eat your own children. No way are you going to actually save and shoulder some risk.
Well, here is how it is going to play out. The new Obama GDP growth rate is about 2 percent. That old Reagan-esque, post-World-War-II growth rate was about 3.5 percent. If you use that 75-year time frame employed by the Social Security actuaries, the difference is about 67 percent. In other words, the wealth generated over the next 75 years is going to be 67 percent less than it would have been if you had had post-World-War-II growth rates.
What happens with this kind of dishonesty, immorality and disparity? Your kids finally get it and move (think Greece). You get what you deserve, which is to eat dog food in your old age.
SAMUEL BURKEEN
Reston
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