by Charles Palson
After Federal Reserve Chairman Allan Greenspan recommended cuts in social security, the media repeated it as if the question was cutting or not cutting. They failed to mention that the money left in the social security “trust fund” at the beginning of Bush’s term has been stolen outright TO FUND THE GENEROUS TAX CUTS FOR THE ULTRA RICH. The so-called trust fund, by the way never really existed. Instead of collecting interest in the treasury, politicians used it for their own purposes.
These are the facts everyone should know:
* During Bush’s presidential campaign, some feared he would pay for the tax cuts with social security funds. He calmed these fears by saying “In my economic plan, more than $2 trillion of the fed surplus is locked away for social security… For years, politicians have dipped into the Trust Fund to pay for more spending… I will stop it.”
* Two months after he took office, he again calmed fears, promising to keep the funds in the “lockbox.”
* The Wall Street Journal had already concluded he was lying and would “use social security surpluses.. to fund the government for the next two years, and to spend well over $100 billion on ss funds in each of the following three years.”
* On June 7, 2001, Congress passed his tax cut package that radically cut taxes of the rich. The only way keep government going after such a huge cut in revenues was to raid the social security “lockbox.”
* Secretary of the Treasury O’Neill said 12 days later that “I come to you as managing trustee of social security. Today we have no assets in the social security trust fund.” This was said in front of the Coalition for American Financial Security. It now wants to rake in more profits by pushing legislation that would allow people to invest their savings in special stock market accounts. As we noted in our How The Ultra Rich Embezzled America (www.FairnessInTaxes.org), the stock market has been used by the very same people to embezzle trillions of dollars of our savings. They stole from the lockbox, and they will steal again from the stock market.
The only fair solution is to roll back the tax cuts. If it can’t be done retroactively, then ratchet up the marginal tax rates on the rich to ultra high levels for a few years. Call your elected representatives about this.
(Phaedrus has been all over this for days. Check it out.)