The so-called “trustees” for the Social Security trust fund have once again come out with their annual report and, for a few days at least, the lapdogs of what passes for news in this country and some of the government’s stink tanks are telling us that the demise of Social Security has been lowered to 2040 without telling anyone what this really means to the tax paying public.

What’s excluded is the fact that once Social Security turns to its trust funds for money, those who pay income taxes will be covering the amounts drawn down. You will be paying off the trust fund’s markers while, if you’re a worker in this country, continuing to pay excessive payroll taxes as well and as usual. And payroll taxes will probably be raised more than happens every year or so. In short, you will be double taxed by paying back money you paid before but the government stole and spent elsewhere. And they've dumped annual interest on top of it like sprinklers on a double-dip ice cream cone.

Only the least informed and gullible people in this country, along with the illegal immigrants who are demanding their right to pay taxes, fail to see this for what it really means. It’s the most obvious form of fraud, malfeasance, and double taxation that has ever existed. And it has all been brought to you by your own government, the people you elected in both parties. Democrats and republicans are equally guilty of this scam.

Most of the expected draw-down is based on the “baby-boomer” myth or the distorted idea that “76 million” people are about to begin retiring in 2009 or thereabouts. In fairness, the perpetrators of this myth have never said these were births “above normal” that occurred between 1946 and 1965, the child bearing period for those lusty military people when they returned from World War Two. At the same time, they’ve never said that it isn’t births above normal. They just repeat the number over and over and let you draw your own conclusions. And who really examines census data?

The truth is that the U.S. population would have increased about 69 million if there had been no World War. The so-called baby boomers are no more than seven to eight million births above normal and that includes legal immigrants at a time when many Asians were seeking refuge and opportunity in our country.

Most significantly, the baby-boomers are a much smaller number than the eleven or twelve million illegal immigrants that many in Congress would like to add to their tax base. And that may be the real reason for considerations of amnesty and citizenship.

What’s more, you’ve got to question the estimate of 11 or 12 million illegals in the country already. If we can’t keep track of the people who enter this country legally, overstay their visas, and so forth, how can we determine the numbers who sneak in? Does the Census Bureau simply count all of the people who speak Spanish and then subtract the number the INS has listed as legal immigrants? We need something better than that because many of these “illegals” hide from the census takers. Wouldn’t you if you had broken the law?

American taxpayers will start replacing the money that the federal government supposedly “borrowed” or “invested,” but really stole, in a dollar-for-dollar substitution of bogus bonds that today make up 23 percent of the national debt. Markers that have annual interest added to the tab on top of the theft of our original payroll tax overpayments or surpluses. We continue to give them money and they give us debt in return. We buy debt.

Drawing on Social Security’s $1.8 trillion trust fund markers will require a substantial increase in income taxes. (See “confessions” from authorities)

Even worse is the fact that there are hundreds of “trust funds” in the same position as Social Security’s that is simply the largest. All together, these so-called trusts make up 42 percent of the national debt for a current total of $3.5 trillion. They’re all in the “Intragovernmental Holdings” (IH) dishonest side of the national debt. And many of them are being drawn down as you read this article.

In other words, you are already being taxed and double taxed to cover part of this fraud. Just last month, it amounted to $5 billion for Medicare, $1.9 billion for Military Retirement, $2.9 billion for Unemployment, $2.8 billion for federal retirement (FERS), $118 million for Veterans life insurance, and $239 million for Federal Life & Health (which never has any income), just to mention a few. These withdrawals are never mentioned in the major news.

The government might legitimately borrow money to cover this by selling honestly contracted treasuries to investors and other countries like China and Japan. So you may not be paying the draw-downs today but they become a future tax for you or your children to pay.

And don’t forget that this is all on top of the huge budget deficits the government deliberately sets out to run every year because they can’t live within their means – spending over and above expected tax receipts, their only form of revenue.

Government Dilemma

Congress and the administration know full well that the “baby-boomer” scare story will be exposed in a few years when everyone finds that it’s always been something Social Security’s excessive payroll taxes can handle without much of a problem, or could be overcome with something like a one percent increase. Even the naïve who believe their own story of a “horde” of boomers about to descend on Social Security have been looking for a way out. They need something real besides just letting the boomer story fade into oblivion along with Iraq’s “weapons of mass destruction.”

Amnesty and the chance for citizenship for the “hard working” illegal immigrants is one way out. Since their numbers are probably a lot more than twice the number of retiring boomers, and as new taxpayers even paying a fine for their lawbreaking, they could provide a smooth transition even if they continue to work for less than today’s citizenry. Since the majority who walked across our borders and deserts are young relatively healthy workers, it can sweep the baby-boomer problem under the rug in jig time.

It’s that simple folks. Our representatives in Congress know that this is diametrically opposed to the opinion of most American citizens, but they have so much to gain, including new voters, by covering their scam for awhile longer. And they are very likely to look on this as a win-win situation. Expect it, they may even try to reduce your supplemental retirement benefits.

Any plan to cut Social Security benefits or raise payroll taxes is a real kick in the you-know-what since they've been overtaxing us for the last twenty-three years without investing that money properly and especially since they stole another $86.5 billion from Social Security just last year – all of which we have to pay again someday, plus interest.

Our country is being run by a bunch of swindlers whose only defense is that they make the rules.