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<p>[QUOTE=&quot;NorthKorea, post: 1300321, member: 29643&quot;]If the gov&#039;t did away with Soc.Sec., you would pay $0 into the program. That said, the gov&#039;t would increase taxes on corporations/individuals by the necessary amount to off-set the loss of 10.4% in taxes.</p><p><br /></p><p>Also, what is the source of the $1T in student loans number? I would assume it couldn&#039;t be that big, unless you&#039;re including privately issued student loans, which shouldn&#039;t be included into the national debt. Sallie Mae originating loans equate to $200B or so, if I recall from their financials. That amount would be guaranteed by the US gov&#039;t, but the default rate is realistically ~40% of that, so $80B of bad debt originating from student loans.</p><p><br /></p><p>If the US gov&#039;t eliminated SocSec/Medicare, that would wipe $1.545T away from the expense side of the ledger. Assuming the gov&#039;t figures out a way to continue to collect those taxes (which our lawmakers will), that move alone would bring the US budget into a $300B surplus for FY12. It would also remove the obligation on the liabilities side of the ledger, which would mean the interest payments owed to SS/MC would be removed from the deficit, as well. It&#039;s silly, but the US gov&#039;t is running a deficit in much the same way a baby boomer getting ready to retire does: Spend money today assuming that you&#039;ll get your pension/social security in two years. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie7" alt=":p" unselectable="on" unselectable="on" /></p><p><br /></p><p>The problem is that one of two things must break:</p><p><br /></p><p>A) The US Govt defaults on external debt.</p><p><br /></p><p>or</p><p><br /></p><p>B) Those waiting on Soc Sec will wake up one day to the shock of their lives.</p><p><br /></p><p>I&#039;ve already accepted that I&#039;ll never get a single cent out of Soc Sec. I accepted that while I was still in college in the 90s. I don&#039;t complain about paying for Soc Sec, since I never expected to see the money anyway. I do however complain about how the money is distributed to the generation before me. Those in their 40s/50s should understand that they need to work into their 70s/80s to prevent complete failure of the system they take for granted.</p><p><br /></p><p>I assume that I&#039;ll work into my 50s/60s/70s then die of a massive heart failure. If I don&#039;t, terrific! If I do, I expected it.[/QUOTE]</p><p><br /></p>

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