Tuesday, January 11, 2005

Social Security and Massive Future Taxes

The Republicans want to borrow one to two trillion dollars to fund private social security accounts. This will require one and a half to four trillion dollars of future taxes to pay the principle and interest. The Republicans say these private accounts will benefit younger workers, and they might if the stock market goes up. But younger workers will also have to pay the trillions of dollars in future taxes created by the debt. When you factor this in, even younger workers will be taken to the cleaners.

Today, social security has $1.5 trillion in the bank and takes in more than it spends. The federal government owes $7 trillion in future taxes and is borrowing about $400 billion every year -- generating another $6-800 billion in future taxes yearly. Social security isn't in financial crisis, but the federal government is.

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