IS ALICE RIVLIN SENILE OR AN OUTRIGHT LIAR?
Tonight, Thursday, April 21, 2011, Lawrence O’Donnell interviewed Alice Rivlin (former Clinton Administration Budget Director) on his show on MSNBC.

He asked her what would be the ramifications if the federal debt ceiling were not increased.

Ms. Rivlin said that federal obligations would not be paid, including Social Security (SS). That is incorrect, since payments to SS recipients are made from the SS trust fund, which is separate from the federal budget.

If she is not senile, she should be characterized as a liar.
But, why would she lie?

First and foremost, there has been a consistent and constant effort by both Republicans and Democrats to use the “fear factor” for the purpose of “tenderizing” the People to accept “inappropriate” modifications to the SS program. They want the People to believe that there is no alternative.

If SS were funded on an actuarially sound basis, the top 0.1% of taxpayers would have to pay more in income taxes, and that, my friends, is not anything they will allow.

By far, the best modification of the SS program would be for a change in the funding of the program from charging workers and employers to single-payer government funding.
Until the change can be effected, legislation should be passed, which would assess the current taxation on all income, earned and unearned, without limitation.

The answer to the question regarding the reason why only “earned” (excluded all passive income: rental, dividends, interest, capital gains, etc.) income has been subjected to this “income tax” and why there has been and remains a limit upon the amount subject to this “income tax” should be apparent and intuitive, i.e., the upper income earners would pay more. This, in essence, is why politicians, both Democrats and Republicans, and “talking heads” have been “tenderizing” the People by suggesting that “because of our massive federal deficit, we must address entitlements, including SS”.

I ask everyone to contact his or her Representative and both Senators to inquire as to how much of our massive current federal deficit of approximately $1.6 trillion is attributable to Social Security. The answers will astound most.
HINT: The answer is ZERO!

Sadly, our legislators have constituents AND they have clients!

mz
04-21-11