Horace Deets` article regarding Social Security and Medicare (Aug. 19)
made some very good points but also contained some errors.
He referred to Social Security and Medicare as entitlements; they are not entitlements. The benefits are paid out of the payroll deductions of the many current and future recipients.
Welfare and Medicaid are entitlements and, while I agree that some entitlements could (and should) be cut, these are already too low.
He said that the trust fund money is being ”invested” in Treasury bills, ”the safest form of investment possible.
The term ”investment” is a misnomer. That indicates the funds will be repaid with interest. To the best of my knowledge no funds have ever been repaid either in interest or principal.
When the funds run short of the amount needed to pay benefits, the call goes out to reduce the benefits or increase the payroll tax rate to make up the shortfall.
The fund is raided by the Treasury ($50 billion to $80 billion each year) to reduce the annual deficit with no intention of repaying the funds, interest or principal.
If our politicians are sincere about reducing the deficit without reducing one program or increasing one dime of taxes, I recommend they read the book, ”The Government Racket,” by Martin L. Gross.
It details many senseless programs that benefit only the politically connected or the special interests on which the government wastes billions of dollars of taxpayer money each year.
