The Government Is Impoverishing You
Confiscating Retirement Accounts
by Gary North
The Social Security System went into red ink mode this year. I predicted last January that this would happen. My video is here.
More money is now flowing out of the Social Security Administration to recipients than is flowing in through FICA taxes and interest payments to the SSA Trust Fund from the U.S. Treasury’s general fund.
The old deception is no longer working: counting FICA revenues as income for the on-budget Federal budget, while not counting the IOUs issued by the Federal government to the SSA Trust Fund as a liability. Today, there is not even the traditional phony surplus.
I went public with this story in 1977, when Jimmy Carter hiked FICA taxes, promising that this would defer the crisis until the turn of the century. It deferred it six years. The crisis was deferred again in 1983, when the SSA technically went bankrupt, and the government changed the law again. Another day of reckoning is here again. We can expect another change in plans.