Since the 1960's, Congress has been borrowing money from Social Security to operate the annual budget. Windfall-tax-cuts for the wealthy and for corporations beginning in the 1960's have caused the government to borrow from Social Security in order to fund the daily operations and programs of the federal government and to provide money to the States to fund their programs for education, law enforcement, housing, health, roads/highways, supplemental foods and the environment.

Our parents who are age 62 and over and who are receiving Social Security benefits and Medicare are being paid with the FICA (Social Security) tax being paid currently. Social Security tax paid today is used to pay benefits today.

When Social Security was established there were 5 workers to every recipient of Social Security. It is projected that by 2032, the ratio will be 1.5 workers to every recipient.



Will Social Security be bankrupt when you retire?
No, if we make changes now. Rather than giving windfall-tax-cuts to the wealthy and to corporations, responsible use of that money is repayment to Social Security of monies borrowed by Congress. We need fair taxation of high incomes.

Currently Social Security tax is paid on all income from $1 to $72,600. High wage earners pay no Social Security tax on their incomes over $72,600. If these higher incomes were taxed, this money would strengthen Social Security. It is not fair to expect workers earning under $72,600 to pay a huge amount of Social Security tax while high income earners pay none.

LOBATO says Domenici's support of privatization of Social Security trust funds is irresponsible because the stock market is too volatile. In 2000 and 2001, hundreds of corporations have lost nearly 100% their stock value. If billions of dollars are invested with big investment firms, those stock brokers make millions in management fees but citizens lose their savings to money managers, not to mention the real possibility of loss when stock prices fall. Our 77 million baby boomers beginning retirement in 2013 deserve the protection of their funds not the enrichment of money managers to secure future campaign contributions.

LOBATO says the middle class and the poor subsidize Social Security for the wealthy. Social Security tax is paid on earnings from $1 up to $76,200. Starting with $76,200 and up, no Social Security tax is paid. Congress has raised the retirement age from 65 to 70 years of age as a method of reducing costs. On minimum wages, workers have insufficient money to retire when their health dictates and to afford prescription drugs. To stabilize Social Security, to fund Medicare, and to provide prescription drug coverage for the elderly, we must tax all earnings fairly.