Ronald Reagan and the Great Social Security Heist,
by Dr. Allen W. Smith, Ironwood Publications, 177 pages, $???
In 1983, the United States Congress passed legislation to
fund Social Security through a payroll tax. This special tax was to flow into
an untouchable fund to ensure the baby boomers would have some income when they
retire.
Ronald Reagan, when he was president, broke the law and
dipped into that fund to pay for other government programs. George Herbert
Walker Bush did the same, but took more money. Bill Clinton also took from the
fund, albeit less money and for only part of the time he was president. George W.
Bush took all that was left.
Smith calls this theft, embezzlement, fraud and about every
nasty name short of profanity. What’s gone is $2.7 trillion, which is how much
money Americans will need to find to fund Social Security obligations for the
next 20 to 30 years.
And that’s all you need to know about this book which says
it again and again for more than 170 pages. But then, again, it appears that
Americans, especially Republicans, still don’t get it.
This is totally unlike the Canada Pension Plan, which is
protected and invested. And no Canadian seriously doubts that the federal
government won’t be able to pay Old Age Security and Guaranteed Income
Supplements, although retirement age will be postponed.
Where did the U.S. money go? Smith says most went in tax
breaks skewed to the richest Americans. Therefore, he argues, the rich ought to
be taxed to replenish the fund.
However, the Republicans absolutely refuse to allow any tax
increases and they’re in control of tax increases. Nor will they allow
borrowing to pay seniors, so it seems they’ll soon be cut off.
And then what? Who knows when it’s the Excited States?
