Grandma and Grandpa Bust a Rhyme to Protect Social Security

The GOP has gone on the record time and time again against about Social Security and its supposed under funding. The fact is that is not the case. Social Security is currently running a surplus of $2.6 trillion (assets grew from about $47 billion at the end of December 1986 to about $2,609 billion ($2.6 trillion) by the end of December 2010), and is funded through 2037 according to Wikipedia.   

Operations in quarter
ending December 31, 2010
[In billions] 

Income $202.9
Outgo 179.3
Difference 23.6

Operations in 2010  [In billions] 

Income $781.1
Outgo 712.5
Difference 68.6

By 2037, it is expected to be officially exhausted, so there is no doubt that some reforms need to take place and there are ramifications if no reforms are implemented: 

  • Payroll taxes will only cover 78% of the scheduled payout amounts after 2037. This declines to 75% by 2084. Without changes to the law, Social Security would have no legal authority to draw other government funds to cover the shortfall and payments would decline without a large tax/revenue increase or increase in eligibility age. 
  • Between 2015 and 2037, redemption of the trust fund balance to pay retirees will draw approximately $4 trillion in government funds from sources other than payroll taxes. This is a funding challenge for the government overall, not just Social Security.  

The funding could be fixed by getting rid of a cap that currently exists. Currently everyone paying into Social Security only pays taxes on the first $106,800 of their income and nothing on any income above that meaning that wealthier citizens pay no Social Security taxes on most of their income. Eliminating this cap would make the program solvent for a much longer time period. 

The Economic Opportunity Institute and Social Security Works has come up with an absolutely awesome way to promote eliminating this cap. They released a video this week that features two senior citizens rapping “Scrap the Cap,” and anyone who supports “Scrapping the Cap,” can take action on the web site related to the video

The video below is well worth watching….the couple is sooo cute, however, if you don’t have time, the lyrics are listed below the video, but trust me, watching the video, which is about 3 minutes, is well worth your time. 

Go grandma and grandpa!!! 

The real old school in the house 
Give it up for the geezers 

Had our golden years all planned out 
Small pension, golf cart and a Florida house 
But congress put a hit on Social Security 
Mugged us of our dignity despite our maturity 

Tax we paid with every check we earned 
Time to collect we the ones gettin burned 
There’s nothing we can do if we can’t get paid 
‘cept eat cat food, and drink haterade 

Listen up cuz while we drop some knowledge 
We raised our little boy, put him through college 
Only safety net is our next of kin 
Look out son, cause we’re movin in (what!?) 

We’re movin in (what!?) 
We’re movin in (what!?) 
Pull out the couch cause we’re movin in (what!?) 
No arguin (what!?) 
No arguin (what!?) 
Pull out the couch cause we’re movin in 

Name’s Spinal Twist, check my orthopedic kicks 
‘cause I stoop farther south than the St. Lunatics. 
I’m still getting play and it’s all thanks to Pfizer, 
Keepin me stiffer than my Yankees cap visor 

My station wagon windows are dark with tint 
I subscribe to vibe and I get the large print 
They call me Martini got substance abuse 
‘cause I’m always playin gin and sippin on juice 

Our son wants to know if we can pay the rent, 
But without benefits we ain’t got 50 cent, 
We don’t pack a nine, we’re just strapped for funds 
But we’re still game killers for our bachelor son 

Social Security payments are far from erratic 
“it’s broke and failin” don’t believe that static 
This crisis is a fiction there would be no debate 
If we all pitched in at the same tax rate 

There’s a cap on how much millionaires pay 
Even though we all work like every single day 
These are the facts but they’re provin’ thin 
So pull out the couch ‘cause we’re movin in 

We’re movin in (what!?) 
We’re movin in (what!?) 
Pull out the couch cause we’re movin in (what!?) 
No arguin (what!?) 
No arguin (what!?) 
Pull out the couch ‘cause we’re movin in 

Alright now younginz, you’re our last resort 
‘cause sooner or later, we’ll be needin support 
If you don’t want roommates just learn this rap 
It’s only one line, shout SCRAP THE CAP

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