Its all in the name and supposed use

http://www.snopes.co...urity/changes.asp

The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury; they are not, nor have they ever been, put into the "general operating fund."

However, whether the Social Security Trust Fund can truly be said to be "independent" is problematic. The Social Security Act specifies that the monies in the fund may only "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). The government "pays back" this money when the Social Security program redeems the bonds, but critics of the program contend Social Security will eventually fall into deficit by 2018, and the Treasury won't have the necessary cash on hand to redeem the bonds and pay back the fund. [...]

The excess was always intended to be transferred to the Treasury in exchange for bonds that would be redeemed later. How would it make sense for the money to sit in a vault? There's no "raiding of the trust funds" that went on after 1983 - it worked as it was designed.

Now what that funding was used for is a different issue, of course... ;-)

There's much more in the link.

HTH.

Cheers,
Scott.

Post #329,484 by beepster 7/12/10 11:43:51 AM Reply	Its all in the name and supposed use Federal Insurance Contribution Act. Its >supposed< to be a retirement fund. I agree, though, that at this point it may as well be a tax, as its proceeds are being stolen (oh, sorry, borrowed) by the government and used as general funds. The benefit of which is at least one President has been able to claim he took the government to surplus (nudge) I will choose a path that's clear. I will choose freewill.
Post #329,494 by Another Scott 7/12/10 12:53:15 PM Reply	s/at this point/since the Greenspan Commission in 1983/ HTH.
Post #329,496 by beepster 7/12/10 3:00:59 PM Reply	Hmm I see where they recommended that a payment be made from general funds to the SS trust fund...don't see where they recommended using the trust as first national bank. I will choose a path that's clear. I will choose freewill.
Post #329,497 by Another Scott 7/12/10 3:50:44 PM Reply	Here ya go. http://www.snopes.co...urity/changes.asp The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury; they are not, nor have they ever been, put into the "general operating fund." However, whether the Social Security Trust Fund can truly be said to be "independent" is problematic. The Social Security Act specifies that the monies in the fund may only "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). The government "pays back" this money when the Social Security program redeems the bonds, but critics of the program contend Social Security will eventually fall into deficit by 2018, and the Treasury won't have the necessary cash on hand to redeem the bonds and pay back the fund. [...] The excess was always intended to be transferred to the Treasury in exchange for bonds that would be redeemed later. How would it make sense for the money to sit in a vault? There's no "raiding of the trust funds" that went on after 1983 - it worked as it was designed. Now what that funding was used for is a different issue, of course... ;-) There's much more in the link. HTH. Cheers, Scott.

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