Bernie Sanders, Socialist Security

It won't take much to fix Social Security according to Vermont Senator Bernie Sanders.  According to him Social Security isn't even in trouble.  The sad part is, he's about half right. Social Security shouldn't be in any immediate trouble at all, but it is.  We'll get to that, it's the biggest part of the reason Sanders is wrong 

For those that don't know, Bernie Sanders is the Junior Senator from Vermont.  He was elected to the Senate in 2006 before that he's served in the House...  He votes, caucus and follows the wishes of the Democrats, he's actually an Independent.  He bills himself as a Democratic Socialist.  He has some early real life work experience, however most of his life he's been a Politician,  He taught briefly at Harvard, he's a Socialist, no surprise.  He's a member of the Senate Budget Committee.  A a Socialist deciding how Government should spend money....that works well.

Off the top of my head I'd say Bernie's been a student of Capitol Hill math too long;


He doesn't want any changes in Social Security Benefits that would reduce eligibility, benefits or increase the retirement age.  I'll agree with that... I paid into the system for 47 years. starting when I was thirteen

 According to Politico the Senator had this to say;


First, let’s be clear: Despite all the right-wing rhetoric, Social Security is not going bankrupt. That’s a lie!

The truth is that the Social Security Trust Fund has run surpluses for the last quarter century. Today’s $2.5 trillion cushion is projected to grow to $4 trillion in 2023. The nonpartisan Congressional Budget Office, experts in this area, say Social Security will be able to pay every nickel owed to every eligible beneficiary until 2039.

Got that? In case you don’t, let me repeat it. The people who have studied this issue most thoroughly and have no political bias report that Social Security will be able to pay out all benefits to every eligible beneficiary for the next 29 years.


If I didn't know better, I'd say that was good news..   Like everyone I've contributed to "My" Social Security Retirement Fund. and "My Contributions" to "My" account have been matched by "My Employers Contributions" to "My Account".  My problem,  like everyone else who contributed to "Their" Government run Retirement Account is we have the most crooked "Retirement Fund Manager in the World"

If a private Retirement Fund were to replace all their investors money with junk bonds that cannot be redeemed and spend the money on other things they would go to jail, unless they found a way to redeem the bonds. 

That is exactly what Congress did,  Sanders didn't lie, on paper the money is there..  That's the only information the CBO could use.  They had to ignore that Congress has no money to redeem the bonds with.  The Evil Lying Right Wingers are pointing out a simple fact, when a corporation cannot meet it's bond obligations, it's bankrupt.

To make matters worse, It's not just Social Security.  Congress did the same thing to the Rail Road and Federal Retirement Trust Funds as well as all the rest.  One third of the entire National Debt, 4.5 plus trillion dollars is owed to "Untouchable Trust Funds"  These Trust Funds are supposed to draw interest, they do, that's paid by issuing the Trust Funds, more non-negotiable bonds.. Inside the Washington DC Beltway that's called Government.  Every where else it's called Fraud.

For arguments sake, lets give our Socialist Senator the benefit of the doubt.  Somehow Federal Government Geologists are  going to find the Lost Dutchman Mine.  Trillions of dollars in gold bars will be stacked and waiting.. .  Personally I'm thinking new taxes that will hurt the working class are more likely

Anyway we make it until 2039, what happens then, Government will have spent the Social Security Trust Fund Twice and now it's empty again.  No to worry.. Bernie has a plan...


In the midst of all of the destructive rhetoric and ideas out there, there is one proposal that is simple, sensible and would keep Social Security strong and solvent in a fair and just way.

Under the law today, the Social Security payroll tax is levied only on earnings up to $106,800 a year. That means millionaires and billionaires get off scot free on all of their income above that amount. In other words, an individual who earns $106,800 pays the same Social Security tax as a multimillionaire. That’s wrong.


Applying the Social Security payroll tax on those with the most income, say over $250,000 a year, would correct this inequity. According to CBO, applying the tax to all income would provide all the revenue that Social Security needs for the foreseeable future — for our kids and grandchildren and great grandchildren.


On the surface that sound's good, I'll have to admit.. but get out the shovel, it's time to dig a little.  Social Security is payments are based on contributions.  So if a someone averages $500,000.00 a year during his career, when he retires he's got every right to expect his monthly check  to be 10 times the amount of someone earning $50,000.   Sanders didn't mention whether or not his plan capped benefits at some level. I've heard a great deal of talk from people who want all income to be taxed also wanting to limit the benefits of those that contribute the most... Think about a second.

Josephine owns a manufacturing plant that manages to do 45,000,000 a year in sales.  She routinely works 90 hours a week.  Out of that she is able to draw a $500,000 income.. her plant is in the Northeast somewhere with a State Income Tax.. between Obama. Pelosi, Reid and Sanders this is what will happen,

Right of the the top.. the State gets 45,000
Followed by the Fed wanting  180,000...
Add another 75,000 in Social Security and Medicare (Trust Fund) contributions.. Josephine will never be eligible for any of that back. 
The State takes another 30,000 in property and miscellaneous taxes.


One day, after a long hard week that involved borrowing  money to pay taxes.   Josephine realizes she has to fight to keep a lousy third of what she earns.  The next day she asks her accountant what it would cost to retire to one of those Islands in the Carribbian.

Six months later her facory sits empty with a for sale sign in front.. and One Hundred People are out of work.