(ThyBlackMan.com) (“Excerpts from the book titled, “The Fix This Time”). Tucked into this current tax bill Republicans are working hard to get passed Congress is a reduction in our Social Security income. The reduction has to do with how much of a boost in income retirees will receive as inflation rises. This attack on Social Security by Republicans led by President Trump ought to both alarm and anger you. This is Trump’s first attempt in his objective of destroying the Social Security Benefits Program. However, the dismantling of the Social Security Retirement Program started long ago in the 1980’s with Republican President Reagan’s administration, and now continues with the Trump administration. The intention, starting with Reagan and other Republican administrations, was to drain or some say “loot” the Social Security trust fund proceeds. They accomplished that objective and did it with great efficiency from Republican administration to Republican administration.
As a result, the Social Security trust fund is devoid of any money. There is not a vault or a physical account somewhere in Washington D. C. which has in it Social Security funds. There is no cash reserve! Republican administrations looted the Social Security trust fund to fill holes left in the federal budget to, among other things, pay for tax cuts to the very wealthy. Here is what one time, retired Democratic majority leader Senator Harry Reid said, on the Senate floor during George H.W. Bush presidency in 1990:
“ The same basic rule should apply to the Social Security trust fund. Those moneys should be used only for the purpose for which the money is collected. If, when I practiced law, I violated that trust, I could be subject to disbarment. I could be subject to administrative procedures being taken against me by the Bar Association. In fact, I could be criminally prosecuted by the district attorney. In the instance of the Social Security trust fund, those moneys are used for purposes other than for Social Security recipients, and that is wrong. But here in Congress, we have become pretty careless and callous in what we do with trust fund moneys.”
Based on the way the Social Security trust fund operates, if in any year, incoming payroll taxes, interest payments and income from any other sources, which are the fund’s revenues, are greater than its cost (payments to beneficiaries and administrative cost), the surplus revenues are co-mingled with the general revenues of the federal government and are available for spending, as if they were income taxes, on non-related Social Security activities.
The Social Security program experienced a period of surpluses in funds beginning in 1983 and lasting through 2012. The practice of using surplus Social Security retirement funds for spending on unrelated Social Security activities is unique to the federal government. This practice is not known to happen in the private sector. This is similar to a private company having the ability to dip into the pension fund of its employees and use that money for the daily operations of its business. It is unlawful to do this in the private sector. As Senator Reid said, you could be arrested and sent to jail for doing that. Therefore, this practice should be unlawful in the public sector, as well.
However, Mr. Trump and his administration are now adding even more insult to current American retirees, future retirees and the Baby Boom generation. Here is how the theft of your payroll taxes, by Republicans in Congress will work so that “you are suckered” into believing that it is not actually happening. Mr. Trump has repeatably lied (is that surprising ), saying he will not touch Social Security. He is now willing to adjust the formula used to calculate the cost of living increases for Social Security recipients.
The objective of this move will result in a reduction of benefits to Social Security recipients estimated by the President himself, to be approximately $125 billion over the next decade. That $125 billion will go toward reducing the deficit caused by the tax cut for the wealthy, corporations, and businesses. The end result is, as the cost of living increases over the coming years, retired seniors would get less of an increase in money from the federal government due to the adjustment of the formula which tracks the cost of living.
The result will be, if the Trump administration tax bill passes Congress, a graduated decrease in the cost of living allowance the federal government normally would pay seniors. The best way to look at this is; it will result in a cut of nearly 5% in the paycheck of Nanna and other Social Security recipients once the new formula goes into effect. The rich and the powerful have always found a way to rip-off the American worker because they surmise the American worker will not take the time to read about and understand the rip-off .
The game is always the same when the rip-off is executed, first they come for the fluff which in this case, is the COLA ( cost of living allowance). You see, most retirees don’t even realize that they should get an increase in their Social Security check as inflation rises. If they can take the fluff; they know you don’t have a real plan to keep them from eventually taking your Social Security check, by saying income from Social Security has to be reduced to balance the budget (which is what they are really after). Thus, you will see them produce what they call “a balanced budget resolution act.”
They have been successful in taking the fluff, as it looks like that is gone, if this tax bill passes. How can this be stopped?! It’s really relatively simple; use Social Security to save Social Security. It’s impossible for anyone to “steal” something that you actively use every day. Tell Nanna! With her infinite wisdom, she will guide you. Most of the time, “The Fix” is right in front of your face.
Staff Writer; James Davis
This brother is a leading expert and consultant in Financial Analysis and Social Dynamics. He is a graduate of Florida A. and M. University(FAMU), a former stockbroker, and a human rights activist who resides in Sanford, Florida. He was awarded the prestigious Governor Haydon Burns Scholarship to attend FAMU and while at FAMU was awarded the first Martin Luther King Scholarship. He is the author of three books, among them is “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Consumer Demand (https://www.amazon.com/dp/B00MI3PD2M).
He can be reached through his blog @, (http://www.thefixthistime.com).
