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Today's Nuze

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."

Frederic Bastiat

THE RAID ON SOCIAL SECURITY TO PAY FOR THE GOVERNMENT TAKEOVER OF HEALTHCARE

By
webwench
@ October 21, 2009 8:47 AM
Permalink | Comments (15) | TrackBacks (0)

Yesterday I tried to explain how Obama and the Democrats were scamming their way into making you believe that they healthcare plans could be deficit neutral. Looks like National Review has discovered yet another scam in the Baucus bill -- raid Social Security. Andrew Biggs explains:

But the CBO analysis actually leads to a very different conclusion: that in a classic "raid" on Social Security, Baucus's ostensible fiscal responsibility depends on raising Social Security taxes today to paper over new health spending, ignoring that those increased Social Security taxes imply higher benefit costs down the road.

CBO breaks down the Baucus plan's budgetary effects into those occurring "on budget" (where the substantive policy changes are) and those "off budget" (meaning through the Social Security program). The Baucus plan's on-budget provisions would reduce the ten-year budget deficit by a tiny $1 billion and in 2019 would increase borrowing by $6 billion. In the real world, where entitlement costs rise faster than projected and Congress fails to implement promised cuts to Medicare spending, the Baucus plan will doubtless generate significant deficits.

Meanwhile, the Baucus plan's fiscal skullduggery takes place off-budget. Social Security revenues would increase by $80 billion over ten years, with an $18 billon increase in 2019 alone. Around 3 million individuals would leave employer-sponsored health coverage -- which is exempt from taxes -- to purchase insurance through a subsidized "exchange." Leaving employer-sponsored coverage would raise workers' taxable wages and thereby boost Social Security revenues. Millions more would trade a portion of their insurance benefits for higher wages to avoid a new tax on high-cost policies. By skimming the new Social Security taxes, the Baucus plan appears to significantly cut the deficit when, in truth, it balances only by the skin of its teeth.

Now all of this is pretty complicated .. I know. This means that most Americans won't catch on to what the Democrats are pulling. Know this ... there has NEVER been a big entitlement program that did not cost AT LEAST twice as much as the political class said it would cost when they pawned it off on the American people. This is as it shall be with ObamaCare. It is going to bankrupt this country. These jerks in Washington don't care, though. They can always tax the rich, can't they?



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What others are saying

  • Uncle Sam's Plantation...
    Brian Dolan - "(GOPers) are so greedy thay want to keep some of the money they earned. Don't they know it doesn't belong to them?"

    Yeah, don't Republicans realize that we are all slaves of the state? And that what ever we earn belongs to Massah? Yup, Massah only lets us keep just enough to keep our a$$'s on the plantation. Let 'em keep enough for for NFL, NASCAR and American Idle and the slaves will jes' keep on slavin' while Massah Gummit picks their pocket before they ever see their paycheck.
  • Ahm' from the Gummit an Ahm' Here to Hep' Ya!
    BTW - The SS Trust Fund is already operating at a deficit.

    "Deficits are now going to become commonplace to the nation's largest entitlement program..." so says this article...

    http://newsbusters.org/blogs/noel-sheppard/2009/09/27/social-security-deficit-next-year-ap-unconcerned
  • SS Lock Box
    Butt Neckid - "my social security is safe.......it's in a locked box and they can't touch it......the gubmint said so......."

    I have it that although your social security is safely tucked away in that lock-box, every one of those 545 congresscritters has a key!
  • NO!
    stop it........
    Joyce M/B...........stop it damn it!!!!......
    By butt neckid

    smack!!!
  • stop it........
    Joyce M/B...........stop it damn it!!!!......
  • Oh we know
    Joyce, so naive
    You obviously must be new Joyce, I have had many more names than those two.

    jk joyce, I know you have been writing for a while
    By Brian Fantana

    It just gets old writing them all out and I do have a job to do!!!
  • they can't get mine.......
    my social security is safe.......it's in a locked box and they can't touch it......the gubmint said so.......
  • Gop'ers are just babies
    Thew are so greedy thay want to keep some of the money they earned. Don't they know it doesn't belong to them?
  • Joyce, so naive
    You obviously must be new Joyce, I have had many more names than those two.

    jk joyce, I know you have been writing for a while
  • @ Joyce & Gala
    Brian is really Lame Meyers et al. as useless as ever

    Gala that gal in the photo paid in $25 to SSI, over the balance of her life time she collected $28,025.

    When Tony & Guido do it its "The Numbers Racket".
    When the state does it its "The Lotto"
    When the Fed do it it "SSI".
    The only difference is an act of the legislature!
  • the picture
    If I remember correctly this woman is first recipient of social security. I am approximating the actual numbers but she paid in about $20 and recieved something like $20,000. Yes children, S.S. has been running in the red from day one. There has never been a trust fund so if they are going to raid SS they are going to have to raise our SS tax. Where did this woman's 20 g's come from you ask? Other people who paid in after she started recieving payments. What is it called when you pay off your investors with funds from new investors? Any one?.... That's right! It's called a Ponzi Scheme! Our government has been running a Ponzi scheme for eighty years and now we will have to endure another forced incease in our forced contribution. Change we can beleive in!
  • Trolls
    Brian Fontana is just Jimmy Dolan, ignore him.
  • Surplus does not mean no deficit
    The surplus just meant we weren't adding too the deficit that year. Just watch the deficit clock. At no point under Clinton was it at zero.
  • Didn't Bush already Bankrupt the country
    I believe when you have a surplus of money like Bush did and then Enron it into a trillion dollar deficit, then that is when the bankruptcy actually occured.
  • Borrow now, pay later.
    Continuing the raid on social security will exhaust the fund before my Generation X is able to draw on it. The only "solution" I see coming out of D.C. is an end to tax-advantaged retirement accounts. Following that, the next big thing will be "universal retirement", thus making us dependent on government for well-being [sic] in retirement.

    If that happens, I'm emigrating to Switzerland and will enjoy my retirement being a ski instructor...
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