Disability Insurance and the Social Security Stripping of Funds

John Q Taxpayer wrote in a commentary on the web:
“I woke up this morning and the whole world was backwards. Right is now wrong, illegal immigration is an act of love, self-defense is not permitted, the rich are evil, God is banned, the government of the people is out to get the people, the truth is forbidden, the ignorant are in charge of the intelligent, communism is good, robbery is overlooked, free speech is regulated, money is evil.”

Illegal aliens have more rights and benefits than American citizens, personal property is fair game because it was not earned, it was stolen from the lazy and uneducated, living and breathing causes the earth to go into global warming Armageddon, criminal enemies and jihadis are welcomed with open arms through the southern border with a Club Med socialist red carpet to speed up our demise, sovereignty is selfish and passé, speaking English is offensive to invading ethnic groups, we are now global citizens, the flag, the national anthem and the Pledge of Allegiance are racist, our culture and Christianity are insulting to primitive cultures who should have stayed in the hell hole they came from if they are offended, and being American is shameful and socially unjust.

“Somebody wake me up, this must be a nightmare.”

Unfortunately it is the “new norm.” We are brainwashed to this “new norm” every day through manufactured crisis after manufactured crisis. The low information voters are convinced that our economy is booming, we don’t have almost 100 million Americans out of work, there are no discouraged workers, unemployment went down below six percent, and life could not be better as long as the welfare checks keep rolling in. Would the cash cow not run out of money eventually, even printing them ad nauseam?

Data from the U.S. Treasury show that “Social Security retirement and disability programs have dedicated resources sufficient to cover benefits for the next 19 years, until 2033. However, the projected depletion date for the Separate Social Security Disability Insurance (DI) Trust Fund is only two years away, in late 2016.” Because in 2016 “dedicated revenues are projected to be depleted and will only cover 80 percent of scheduled benefit payments,” the report recommends that “legislation will be needed to address this financial imbalance.”

At the end of 2013 11 million people were receiving DI payments. The number of people receiving DI benefits grew by 0.9 percent. This growth increase reflects the gradual aging of the population as well as increases in the insured population. (pp. 35-36) http://www.ssa.gov/oact/tr/2014/tr2014.pdf

According to the Federal Insurance Contributions Act (FICA), an employer must withhold three separate taxes from employee wages:
– 6.2 percent Social Security tax
– 1.45 percent Medicare tax
– 0.9 percent Medicare surtax for employees earning over $200,000 (began in 2013)
The FICA law requires employers to match the 6.2 percent Social Security tax, the 1.45 percent Medicare tax, but not the 0.9 Medicare surtax. http://www.bizfilings.com/toolkit/sbg/tax-info/payroll-taxes/employers-responsibility-fica-payroll-taxes.aspx

Social Security Disability Insurance protects more than 160 million American workers with an average benefit of $1,146 per month (May 2014), slightly above the 2014 federal poverty line for an individual of $972. “For more than 80 percent of beneficiaries, Disability Insurance is their main source of income. For one-third, it is their only source of income.” http://cdn.americanprogress.org/wp-content/uploads/2014/07/SSDIBrief.pdf

Secretary of the Treasury Jack Lew testified before Congress in August 2014, proposing a change in Social Security funding. From the 6.3 percent contribution, 9/10 of one percent goes to the disability insurance fund which is so tapped that will allegedly be insolvent by mid-2016. Secretary Lew wants to shift a couple of tens of one percent from the Social Security fund to the disability fund.

According to Dick Morris, the disability insurance (DI) fund is stressed by the extra 20 percent increase in disability recipients. Why is there such a sudden increase of disabled people under this administration when the U.S. population grew by only 4 points “since Obama became president?” Morris explained that this growth is attributed to “shaky diagnoses that are highly subjective such as back pain, psychological conditions, migraines, and not from serious diseases such as cancer, heart disease, or diabetes.” He is of the opinion that funding such subjective claims by “stripping money from Social Security is a horrible decision.” https://mail.google.com/mail/u/0/?shva=1#inbox/147f417f22124eda

Social Security’s establishment 80 years ago was necessary to “ensure the security of the men, women and children of the nation against the hazards and vicissitudes of life.” It is those who take advantage of the system dishonestly who can actually work but choose not to, and illegal aliens who draw benefits that are problematic.

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