SSA doesn't know if payments will be made

[tuckeverlasting]

The Social Security Administration has issued an emergency directive instructing employees to say they "don't know" if payments will be made in the event the federal debt ceiling is not raised. https://secure.ssa.gov/apps10/public/reference.nsf/links/07142011015314PM

Retention Date: January 14, 2012
This message instructs you how to respond to inquiries about payment of Social Security benefits or Supplemental Security Income (SSI) payments if the United States does not raise the federal debt ceiling.

Responding to inquiries from the public

If an individual inquires about payment of Social Security or SSI checks due to concerns about the federal debt ceiling, provide the following response:

“We’re sorry but we don’t know.”

Not saying this will happen...I am just reporting what the SSA says. But some might want to prepare.

 

[samclem]

Seems the government could offer folks the option of not taking their payment this month in exchange for some type of bonus payment. And, you'd be helping folks who really need every check.

Never mind. Who would volunteer to get on the government's list of "Folks who told us they could get by without their SS checks for awhile."?

Sometimes we hear folks say "I wish my taxes were higher." This would be a good time for the government to harness all that community spirit. "All of you who feel you weren't taxed enough, please send your checks to the US Treasury right now. We need that money. " I'm sure the money would flow in.

 

[73ss454]

I'm thinking our Government is full of ......... , well that's what I'm thinking.

 

[Aiming_4_55]

Can I say "I don't know if I want to pay my taxes this paycheck"? To bad I can't be a true consumer for gov't services.

 

[FreeAtLast]

"We the people" seem to have made some mistakes in electing "Them the politicians"

After the last presidential election I heard some one interviewed in an exit poll saying that he only voted for the candidates who names that he DID NOT recognize. Perhaps not such a bad idea.

 

[obgyn65]

Can you say ponzi instead ?

Can I say "I don't know if I want to pay my taxes this paycheck"?

 

[scrabbler1]

If the U.S. Treasury can get by through August, they will get a spike of income tax revenues when the 3rd quarter estimated tax payments arrive by the September 15th deadline. I'll be pitching in several hundred dollars in about 6 weeks.

But to the topic of this thread......shouldn't the SSA be able to meet its SS checks because it has a devoted revenue stream (FICA taxes) to cover the checks? And SS is still running an annual surplus; will it be running a surplus in August?

 

[BLS53]

Massive carnage at the voting box if this is allowed to happen. On both sides of the aisle.

 

[samclem]

But to the topic of this thread......shouldn't the SSA be able to meet its SS checks because it has a devoted revenue stream (FICA taxes) to cover the checks? And SS is still running an annual surplus; will it be running a surplus in August?

According to the NYT, SS went cash flow negative in 2010, about 6 years earlier than the Trustees had anticipated (due to the economic woes and RE bubble collapse). I don't know if that's still the case, my guess is that SS is still sending out more money then it is taking in.

SS can sell those "special bonds" they've got in the "trust fund" on the open market and gain funds that way, but it might be too late for that. Plus, those bonds amount to promises of US government payment, rumor has it that such promises might not be worth what they used to be. I suppose fingers might point at the Executive branch for that, and any other things that weren't done to make any this mess less painful (it's not like it was unforeseeable). It's not clear who the public will blame for any default itself. Or, maybe the debt ceiling will be raised--the Senate and House leaders are still talking.

If the U.S. Treasury can get by through August, they will get a spike of income tax revenues when the 3rd quarter estimated tax payments arrive by the September 15th deadline. I'll be pitching in several hundred dollars in about 6 weeks.

Yep, me too. If they'd whack just 5% off the required amount, I'd be happy to send it in tomorrow. It's not like I'd be paying anything less in taxes after all, this is just an estimated tax payment. I'll bet a private company in the same situation would find a way to speed up their "accounts receivable" to cover their costs.

 

[Lancelot]

Hmm, the folks in Washington jsut might "discover" a way to pay the SS recipients on time. Not out of the goodness of their hearts but because there is a vote behind every SS check