According to an article by Scott Schmidt of LesbianNation.com recently, most Americans see a sizable chunk of their paycheck taken out every two weeks in payroll taxes, and then every so often get a “statement” at home from the Social Security Administration telling them how much they should get in benefits when they retire.
Many folks think that, somewhere in the ether, this money is being set aside for them. They’re wrong. The money you pay into the system today is going directly to your parents, grandparents or sugardaddies—and because there are fewer people working and more people hitting the retirement age, the system is about to collapse.
For the first time ever, spending on Medicare will exceed the revenues generated from payroll taxes. Starting in 2017, Social Security will start spending more money than it takes in.
In theory, both programs have a trust fund which will keep them solvent a little while longer—Medicare until 2014 and Social Security until 2041. These are what Al Gore called the “Lock Box”—but unlike a traditional lock box, these trust funds are as valuable as writing “IOU” on a cocktail napkin and sticking it in your wallet.
Many folks think that, somewhere in the ether, this money is being set aside for them. They’re wrong. The money you pay into the system today is going directly to your parents, grandparents or sugardaddies—and because there are fewer people working and more people hitting the retirement age, the system is about to collapse.
For the first time ever, spending on Medicare will exceed the revenues generated from payroll taxes. Starting in 2017, Social Security will start spending more money than it takes in.
In theory, both programs have a trust fund which will keep them solvent a little while longer—Medicare until 2014 and Social Security until 2041. These are what Al Gore called the “Lock Box”—but unlike a traditional lock box, these trust funds are as valuable as writing “IOU” on a cocktail napkin and sticking it in your wallet.
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