Time to strip Social Security out of federal budget.

 SOCIAL SECURITY SHOULD BE MANAGED INDEPENDENTLY

IT WILL BE MORE SECURE IF THE POLITICS ARE REMOVED 

Whether you like or dislike social security it is here to stay and is supported by the vast majority of Americans. At present it is funded by Payroll taxes which are presently 12.4%, half paid by employers, and half by employees, Self employed pay the 12.4%. The fund has not been in a surplus since 2021, it  has been operating in a deficit since that time. Currently the fund spends $1.5 Trillion each year 21 % of federal budget. 

In the 1980's reform was enacted that raised the payroll taxes and provided a surplus for over 40 years. The surplus was spent by the federal government and traded the money for government debt. This surplus will eventually be used up and then serious adjustments will need to made.

There are lots of ill conceived band aid proposals, but the reality is the fund should not be managed as part of the federal budget. Co-mingling of funds would never be accepted in the private sector for obvious reason, the same reasons that it should not be co-mingled with the federal budget.

Some believe that Social Security should be means tested, that is, if you have wealth you should not be able to collect social security, but of course, such people would be required to finance it and at in increasing rate, in effect, making it a welfare program, that would cause the lose of some support for the program.

Then some would raise the maximum that would be taxed, which is now $176,000, which has been going up regularly, again the benefits to these high payers, does not go up, so again another move to a welfare program.

At present the federal government owes social security $2.8 trillion in government debt. This is providing the difference between what is collected and what is spent for now. 

A better idea would be to put a financial management team in charge of the finances of the fund. The money would no longer be part of the federal budget and would be managed independently with, of course, oversight from congress.

Hopefully a full audit and review of social security will make a more efficient program and eliminate any fraud or abuse. Then the government debt would be transferred into the fund and the managers would be able to use that money to invest at least part of it to increase the return and extend the life of the fund. Also such a move would take much of political narrative away from this fund, the annual threats of elimination and cuts replaced with a more objective approach to sustaining the program.