Social Security taxes never went into any type of lock box. The money was used in the general budget to fund pork barrel programs. Instead the government put US Treasury bonds in place of the cash, essentially saying “we owe ourselves money” since the federal government stands behind those bonds….
In 2010 with high unemployment and the bulge of boomers beginning to tap benefits, THERE WAS NOT ENOUGH PAYROLL TAXES coming to COVER THE SOCIAL SECURITY BENEFITS. As has been predicted, you need a certain worker to retiree ratio to sustain the program since the money was looted by our irresponsible Congressional “so called” leaders over the last two decades.
Of course the boomers won’t want their benefits cut and the gutless politicians don’t want to touch the issue. Thus we are staring straight into a shotgun, fully loaded, ready to ask us for more of our money to cover the shortfalls. We need to cut benefits now. Raise the retirement age now. And do anything we can to begin trimming the costs before the entire system is unsustainable.
Read more about this in an article called The Great Lie About Social Security on TownHall.com.