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Memo writing - Essay Example

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It should be noted that according to law, the means by which any surplus tax over payroll is required to be paid into the US Treasury Bills; further complicating the…
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Memo writing

Download file to see previous pages... r is that Social Security has been viewed by both parties and many different congresses as a means to rapidly provide a level of funding to any number of pet projects or current goals that exist. Naturally, such a practice has been short sighted to say the least. The end result has been that due to the fact that such a high level of borrowing from the fund has taken place, no project or governmental action is necessarily better off. The level of intra-governmental debt has remained the same. Moreover, the worst part of this type of borrowing is the fact that due to the way in which the laws that govern the use and utilization of Social Security “surplus” has meant that no meaningful level of surplus has been allowed to accrue. With respect to the way that Social Security surplus funds are allocated and distributed, the government considers a surplus as anything over current liabilities.
A secondary means by which the government could and should seek to provide extra resources to the Social Security Fund is to increase withholding taxes on paychecks. Although raising taxes is never a popular choice among candidates that are seeking popularity with their constituents, the fact of the matter is that it is mathematically proven that the fund itself cannot continue to survive unless it receives an influx of new cash; whether as a function of increased government debt or by increased tax burdens upon those individuals who will one day rely upon it. In this way, the reader can quickly see that there remain two options for keeping the current fund afloat past 2033; taxation or an increase in government debt.1 Due to the fact that government debt already surpasses 15 trillion US dollars, it is not advisable that the government should assume that it will continue to have the capacity or the option to borrow the funding necessary to provide Social Security past the time in which it will become insolvent.
As one is fully aware, the benefits of Social Security are ...Download file to see next pagesRead More
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