[lbo-talk] Interest income in

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Fri Jun 17 11:21:56 PDT 2011


Ravi asks:


> I am looking at the SS Trustees report and right off the bat
> they say “$49 billion deficit last year” … and add parenthetically
> “excluding interest income”.
>
> What is the rationale behind excluding interest?

Because the interest doesn't actually get paid, it just accrues in the account.

So the report is really saying "How much more did it cost than we collected this year?" ...

(FWIW, I think we need to get rid of these shenanigans and just put SS on-budget and pay for it with Income taxes and abolish Payroll taxes)

/jordan



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