SOCIAL SECURITY
Misleading assertions regarding the deficit
It is time to call out George F. Will and others on perpetuating the misleading understanding of Social Security financing ("Government: A most inappropriate engineer," Dec. 13).
Aided by a member of the program's board of trustees, Will states that Sen. Richard Durban, D.-Ill., is "off by 16,500,000,000,000 pennies" when he notes Social Security has not added one penny to the deficit. This is misleading (actually deceitful), and must be challenged.
If in fact Social Security payments exceed receipts this year, the program will cover the shortfall by cashing (redeeming) a small portion of the bonds it holds, owed by the United States.
For too long, the annual federal deficit has been artfully reduced by considering the Social Security surplus as a reduction. The Social Security Administration (SSA) should be considered as a separate entity, which lends, as do millionaires, China and other countries, its surplus to the U.S. Government. The SSA has in fact received U.S. bonds for prior surpluses.
When any other party redeems its bonds, no one claims this adds to the deficit; such redemptions are merely refinanced. So it is deceitful to state that refinancing SSA redemptions adds to the deficit. A member of the Social Security board so stating should be disqualified as a board member.
As no one challenges, the SSA is solvent for many years, as its bonds will cover revenue shortfalls. If reported federal debt does not include what is owed to SSA, it should be restated to include that debt. It must be a separate entity for understanding, and the existence of a separate board supports that.
DARRELL EGERTSON, BLOOMINGTON
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