Government

Fake news about Social Security is particularly dispicable. There is no surplus 🀫

Consider this Twitter Post

Scary stuff, right? The good news is that it’s a lot of nonsense designed to do what I’m not sure except scare seniors and create more animosity toward Republicans.

The truth is there is no surplus. That $2.9 trillion is the reserve built up to meet the obligations already created and earned under Social Security. The last time there was anything close to a surplus was in 2010 when payroll taxes last exceeded the benefits being paid.

The $2.9 trillion is in the form of special US Treasury bonds which are a debt obligation paying the SS Trust interest each month.

What the Tweet refers to was a vote on a constitutional amendment requiring a balanced budget. Interesting though, the amendment contained this exception for government debt.

This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless Congress authorizes the excess by a three-fifths roll call vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing.

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3 replies »

  1. The use of Social Security Trust Fund moneys was passed by President Johnson( bless his pea- picking heart).
    There was a great surplus and no fear of the fund running out, but seems it was too tempting for many other burocratic entities to β€œborrow β€œ funds that have never been repaid.
    Is it impossible to close that door leaving the funds for what they were meant?
    One point that gets my gut is family sponsored seniors (65)from other countries are eligible for benefits without ever paying in a cent.
    Johnson declared every senior should have social security!
    Many checks are higher than for the folks who paid in all their working lives.

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    • Your comments reflect the point of my post. What you are saying about a surplus and borrowing is not true or correct. The Trust will be unable to pay full benefits in 2035 AFTER all of the bonds making up the $2.9 Trust fund have been redeemed. And currently interest on those bonds is the only thing allowing full benefits to be paid. NOBODY BORROWED OR STOLE THE SS MONEY.

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