Next Debt Ceiling crisis: March 15?

[ivwshane]

It's actually "intragovernment holdings" that have 5 trillion. Social Security by itself holds 2.8 trillion in government debt.


The real one to watch is SSDI. The fund is on track to be insolvent by 2016 unless the government does something.
http://time.com/money/3660116/social-security-disability-obama-congress-defending/

You seem to be confused. Social security disability trust fund does not equal social security, although they are closely linked. Not only that but you appear to not be educated on why the funds of the disability trust are about to run out and why it's not only a simple fix but also not the end of the world.

I invite you to read this article and the chart it referred to, to get a better understanding of what's going on.

http://www.usnews.com/opinion/econo...ty-disability-insurance-is-not-out-of-control

http://www.cbpp.org/cms/index.cfm?fa=view&id=4169

 

[Spungo]

I invite you to read this article and the chart it referred to, to get a better understanding of what's going on.

http://www.usnews.com/opinion/econo...ty-disability-insurance-is-not-out-of-control

http://www.cbpp.org/cms/index.cfm?fa=view&id=4169

I'm guessing you didn't actually read the articles.

Reallocating taxes from the OASI trust fund to the DI trust fund — by raising the DI tax rate and lowering the OASI tax rate — is necessary to avoid a 20 percent cut in DI benefits after 2016. Under current law, workers and employers each pay 6.2 percent of taxable wages — consisting of 0.9 percent for DI and 5.3 percent for OASI — to Social Security. Raising the share of that 6.2 percent tax that goes to the DI trust fund for a few years would enable both the DI and OASI trust funds to pay scheduled benefits through 2033 while policymakers craft a balanced and comprehensive solvency package for all of Social Security.

Exactly as I stated, SSDI is on track to become insolvent by 2016 unless the government does something. After shifting money around and playing accounting tricks without increasing tax revenue or cutting benefits, the entire thing is on track to become insolvent by 2033. That's 18 years away. You can expect to see a dramatic tax increase to push that date back.

 

[Nograts]

I'm not too keen on the whole gubment finance semantics. What would theoretically happen if we were to pay off or eliminate our debt entirely? Didn't slick willy do this back in the 90s?

 

[ivwshane]

I'm guessing you didn't actually read the articles.

Exactly as I stated, SSDI is on track to become insolvent by 2016 unless the government does something. After shifting money around and playing accounting tricks without increasing tax revenue or cutting benefits, the entire thing is on track to become insolvent by 2033. That's 18 years away. You can expect to see a dramatic tax increase to push that date back.

No I read them and I then explained them to you and then you pointed at something different.

 

[ivwshane]

I'm not too keen on the whole gubment finance semantics. What would theoretically happen if we were to pay off or eliminate our debt entirely? Didn't slick willy do this back in the 90s?

No he didn't. Debt is not the same as deficit.