(what’s not to believe?)


Maybe it’s just me, and my Simple Simon mind, but every time I either hear or see some kind of budgetary cost figure, or deficit figure, coming out of someone’s mouth in Washington these days, my reaction isn’t just skepticism  it’s downright disbelief!


None of their so-called figures make any sense. None of their pronouncements about them are ever supported by any kind of evidence. They just make grand statements such as…. “Social Security is going broke, and will soon overload the budget”….. “Medicare is also going broke”…. “Despite the false rumors being spread about them, the health care reforms we’re contemplating won’t cost the taxpayers a single dime. Their costs will only be $900 billion over the next ten years. and half of that will be paid for by the savings we expect to get from those reforms….”, and so on. 




So, first, perhaps someone can explain to me about Social Security. Reportedly it has had surpluses in terms of revenues versus expenditures for the past 15-20 years. Have we, the taxpayers, ever had an accounting about that? That is, something of an annual profit and loss sheet, showing where the revenues have come from, what the expenditures have been, and what have been the net “surplus” balances for each of those years. Not that I know of. More importantly, where have all those “surpluses”  gone (yes, yes….we all know the answer to that….they all went to Congress, to spend on other crap.…meanwhile leaving a bunch of IOU’s, T-Bills/Notes, in the lock box to replace them. Hah!).


The question on this matter, therefore, is: How can they say Social Security is going broke, and overloading the budget besides? Answer, Social Security really isn’t going broke, because its revenues come from separate taxes which every working stiff in this country, big or small, finds skimmed, right off the top, from every paycheck, every payday. Unless everyone quits working, that revenue stream will keep flowing.

And if Congress were forced to honor its IOU’s as well, Social Security would be sitting very pretty indeed. As to the problem of “overloading the budget”, the only reason I can figure for it to do that, is due to the hefty interest that’s accruing on those Congressional IOU’s.  


A similar situation exists with Medicare. Again, we’ve never seen a proper accounting about how much it takes in, and how much it has to pay out, in any given year. They just tell us it too is going broke! (which seems to be the driving excuse for the “health care reform” fandango currently worming its way through Congress). 




But, just as with Social Security, Medicare is funded not only from another skim, off of every working stiff’s paycheck, every payday; but also, from every retiree on Social Security besides. First, Medicare currently skims a neat 7% off of every paycheck, every payday and, it’s been going up as much as 14% over the COLA annual increase every year. On top of that, every Social Security retiree has that skimmed off his/her monthly stipend. Currently, it is now at $96/mo. Apparently Social Security and Medicare use two different consumer index rates!  


So what is the gross revenue return from all that when we consider not only the millions of folks still gainfully employed, and the millions of retirees still being taxed for Medicare every month? Three very simple equations give us the answer:

  1. 1)x amount/mo/worker…times y million workers = Total payroll revenues.
  2. 2)$96/month/retiree….times z million retirees = Total retiree revenues.

3)   Grand Total Revenues = 1)+2) above.


I don’t know about anyone else, but as far as I’m concerned, either all our members of Congress never passed Math 101; or, they’ve become the slickest of three card Monte dealers on the planet….take your pick!


Well, perhaps the best “reform” we might demand of them, instead of the present exercise, is to have them declare that both Social Security and Medicare are fiduciary departments of our government, and as such, must produce quarterly Revenues / Expenditures reports and P/L balance sheets….so we taxpayers can see how well they’re handling our “investment” in these. And if we didn’t like what those reports told us, quarter to quarter, we could sic the GAO, or the Justice Department, on them, for a possible quick ride to Ft. Leavenworth, KS. 


That should do it!