This past week much was made of the fact Congress in a bi-partisan vote approved the extension of the reduced payroll deduction some called it an extension of a tax cut. The President said, “This is a big deal”. He could have said, this is a big steal and still been accurate, because we the American people have been sold a bill of goods on this one.
While most voters, according to polls, were in favor of the extension one has to wonder if they really knew what was being done. How many people would be in favor of reducing their social security income in the future? Yes, congress voted for that. How many folks would like to pass on a larger debt to their children to burden them in the future? Yes, congress voted for that too.
The only source of funds for social security is exactly what the Congress reduced with this highly charged political vote this week. Since you will now be putting less in when it comes time to collect your social security you will have to lower your expectations because you will have paid less into the fund. The less you pay in the less you get, that’s how the system works.
Since we have all been told over and over again that the long-term financial stability of social security is dependent on funds taken in one has to wonder what was Congress thinking when they took the vote? The current working generation is now contributing to help cover the cost of past generations that are now retired and collecting social security. Since we are now lowering the amount being contributed the next generation will be in a deeper hole of debt, it is really simple math. What was Congress thinking when they took the vote?
Republicans initially opposed the reduction this past fall but caved to pressure when they were painted with the brush of not allowing a tax break for working American taxpayers. They voted in December to extend the tax reduction for sixty days and now as the election heats up have joined with the Democrats in Congress to continue the extension. It really boils down to this, we the American taxpayer will pay now or we will pay later but one way or the other the taxpayers will pay.
House Minority Leader Nancy Pelosi, D-California said after the vote, “This represents a victory for the middle class in our country.” Ms. Pelosi could not be further from the truth, reducing cash flow into social security and deferring the debt load is not a “victory for the middle class”. In this victory is there any person that believes the middle class working taxpayer will now be allowed to pay less into social security and take the out the same higher benefits they could have formerly expected?
What was Congress thinking? They were thinking about votes, sound bites and election politics. The next time you hear a member of the Connecticut congressional delegation say they are fighting for you remember how they voted to reduce your future social security and burden your children with more debt. Remember how they put their re-election before your well-being.
Nancy Pelosi is like the shepherd herding sheep along a path and announcing as they cross a river, “it was a safe journey it was a victory for all sheep”. When the journey ends shepherd Pelosi will head back to California with the profits of her work as a shepherd and live her final days in luxury, her sheep will learn the victory of which she spoke was not for them but for the shepherd. The sheep will soon learn the path of the shepherd was a path to the slaughterhouse.
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