Tax unearned income for Social Security - letter by Julie Quenemoen

Reproduced here for fair use and discussion purposes. My comments in bold.

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Julie Quenemoen is a gift that keeps on giving. She wrote a previous letter and now doubles down on her error. Read on...)
There are many opinions about Social Security and one can dredge up just as many “facts” to prove them, spuriously or otherwise. The argument that the purchase of U.S. Treasury bonds increases our national debt is unconvincing. These bonds are purchased by individuals, companies, other nations and the Social Security Trust Fund. (False. Social Security's own website says, "all securities held by the trust funds are 'special issues' of the United States Treasury. Such securities are available only to the trust funds." Another government website tells us this: "There are two general types of such securities:

• Special issues—available only to the trust funds
• Public issues—marketable Treasury bonds available to the public.

It should be clear that these are not "spurious" facts.) 

The legislative and executive branches of our government are responsible for how these funds are spent. Is it reasonable to make the claim that anyone who purchases U.S. Treasury bonds is responsible for increasing our national debt? Ridiculous! Again from the SSA website: "Because the government spends this borrowed cash, some people see the trust fund assets as an accumulation of securities that the government will be unable to make good on in the future." Note the government spends the trust fund money. That means the obligation to pay it back remains, with the funds received from the obligation are gone. I'd say that increases the debt. As to whether or not the government will be able to make good on these debts remains to be seen. At least SS is admitting the situation.

Interestingly, the Trust Fund is managed by the Bureau of Public Debt. I did not know that.)

There are many lenses through which we can view our country. We can distrust and fear government, or we can participate in governance for the mutual benefit of all governed; we can isolate ourselves and fight against new ideas, or we can get involved and make a positive difference; we can exclude our fellow citizens or incorporate them into identifying solutions. Guess which I prefer? (Notice the procession of false binary equations. Our choices are not limited to the two she offers in each sentence. It is quite possible and even desirable, for example, to distrust government and participate in it. 

"Fight against new ideas." Um, yeah. SS was implemented nearly 80 years ago. She is defending an old, failing, and unworkable idea that is just now showing us its fatal flaws. Yet she prefers her blinders in the face of overwhelming evidence that SS is nothing more than a shell game. And by the way, the new ideas are coming from the Right, not the Left. 

"Exclude our fellow citizens." From what? Who is doing this, and in what way?)

At this time of economic insecurity (Still? I thought we were recovering? I though all those wonderful economic programs were going to help?) we can and should improve the most fundamental cornerstone of economic security for average Americans — our Social Security system.

Since its inception in 1935, Social Security has provided a safety net for hundreds of millions of people against otherwise abject poverty. Let’s improve Social Security instead of diminishing it. We can do this. Payroll taxes are assessed on income up to $113,700 ($117,000 next year). Those making more than that do not pay SS taxes on income above that amount. They are taxed for Medicare on every dollar of earnings; why not Social Security? In addition, those living exclusively on unearned income (investment income, etc.) are not taxed for Social Security. Let’s ask them to contribute a fair portion. A small percentage of Montanans would be affected and would barely notice it. It’s the right thing to do! (Ah yeas. Let's give more money to the government to buy more bonds and increase the indebtedness of the Trust Fund. That makes total sense.)

Julie Quenemoen Bozeman