Social Security ‘Voice Crying in the Wilderness’ Touring Florida

November 12, 2009

WINTER HAVEN, Fla., Nov. 12 /PRNewswire/ — Economist and author, Allen W. Smith, is driving throughout Florida in a Honda mini-van, plastered with informational signs, in an effort to alert the public to the fact that Social Security payroll (FICA) taxes, deducted from workers’ paychecks each week, are not being put into a trust fund for the payment of future Social Security benefits, as is commonly believed. Instead, Smith says all surplus Social Security revenue, not needed to pay current benefits, is being used as if it were general revenue to pay for everything from past tax cuts to current wars. Dr. Smith, Professor of Economics, Emeritus, Eastern Illinois University, has spent much of his adult life battling economic illiteracy and promoting economic education.

Smith was labeled, “a voice crying in the wilderness” by CNN news anchor, Lou Waters, when Smith appeared on “CNN Today” in September 2000 to discuss his new book, The Alleged Budget Surplus, Social Security, and Voodoo Economics. Waters, who was having difficulty believing Smith’s contention that the government was spending the Social Security surplus on other government programs, said, “We’re not hearing any of this in the news. I’m involved in the news. Are you a voice crying in the wilderness?”

A decade later, Smith continues to be a voice crying in the wilderness as he promotes his latest book, THE BIG LIE: How Our Government Hoodwinked the Public, Emptied the Social Security Trust Fund, and caused The Great Economic Collapse. Smith says that most Americans do not know that none of their FICA taxes is saved and invested for paying future Social Security benefits. According to Smith, “Current benefits are paid from current Social Security revenue each month, and all surplus revenue, not needed to pay current benefits, is deposited into the general fund.

Because of this practice, every dollar of the $2.5 trillion in surplus revenue, generated by the 1983 payroll tax hike, has already been spent by the government, leaving the Social Security trust fund empty, Smith says. The trust fund holds no real assets of any kind. David Walker, Comptroller General of the GAO, said during a speech on January 21, 2005, “There are no stocks or bonds or real estate in the trust fund. It has nothing of real value to draw down.” President George W. Bush said on April 5, 2005, “There is no trust fund, just IOUs that I saw firsthand that future generations will pay – will pay for either in higher taxes or reduced benefits, or cuts to other critical government programs.” Because of the empty trust fund, in just seven years, when the cost of Social Security benefits begins to exceed the payroll tax revenue, for the first time in a quarter-century, Social Security benefits will have to be cut, unless taxes are increased.

Dr. Smith has published seven books, appeared on national TV three times, and done more than 170 radio talk-show interviews, but “the big lie” (the notion that payroll tax revenue goes into a trust fund to pay for future Social Security benefits) continues. Now, in an effort to take his message directly to the American people, Dr. Smith has attached informational signs to his silver Honda Odyssey so it can serve as a “Social Security Info-van.” He will begin his tour in Florida, but plans to also travel to other states. Smith urges everyone who cares about the future of Social Security to visit his website at www.thebiglie.net where excerpts from his new book can be downloaded free of charge.

    Barbara Rugel
    1-800-840-6812 or 1-863-206-4431

SOURCE Ironwood Publications

Source: newswire

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