Monday, February 07, 2005

BORROWING FROM PETER TO PAY PAUL?

No, boys and girls, we're borrowing from Peter Jr. to pay Peter Sr.

That's the essence of the Social Security mess today. The Democrats talk about the "surplus", but the current surplus (excess of contributions over benefits paid out) is being borrowed and then spent by Congress today with the promise to pay it back in the future when it's needed.

So in 2018, when it's needed, Congress will have to begin to cover the shortfall. Where will they get the shortfall?

That's right, boys and girls, from you. It's called higher taxes.

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