Disir
Platinum Member
- Sep 30, 2011
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I don't think that you understand. The money didn't actually move from the trust fund into the general fund in the way that you think.
Two: Here is your confusion=
In the early 1980s the Social Security Trust Funds had developed short-term cash flow problems, as a result of the adverse performance of the economy during the "stagflation" of the 1970s. As a stop-gap measure, Congress passed legislation in 1981 to permit inter-fund borrowing among the three Trust Funds (the Old-Age and Survivors Trust Fund; the Disability Trust Fund; and the Medicare Trust Fund). This authority was to lapse at the end of 1982. However, the 1983 Amendments extended the inter-fund borrowing authority to the end of 1987. Under the law as amended, all loans would have to be repaid by the end of 1989.
The inter-fund loans were required to be repaid with an amount of interest equal to that which the loaning fund would have earned had it had use of the money during this time. In other words, the borrowing fund was required to make the loaning fund whole at the end of the process.
This authority was used twice, once in November 1982 and once in December 1982. The total amount borrowed was $17.5 billion. The Old-Age and Survivors Trust Fund borrowed the money-$5.1 billion from the Disability Trust Fund and $12.4 billion from the Medicare Trust Fund. Repayment began in 1985 and the debt to the Medicare Trust Fund was paid off by January 1986 and the debt to the Disability Trust Fund was liquidated in April 1986.
http://www.ssa.gov/policy/docs/ssb/v46n9/v46n9p13.pdf
This is from 1983-Note that there are four funds listed here and why,
http://www.ssa.gov/policy/docs/ssb/v46n9/v46n9p13.pdf
Ok?
OK.
Payroll taxes include the Social Security tax and the Medicare tax. Social Security taxes provide benefits for retired workers, the disabled, and the dependents of both. The Medicare tax is used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of both are eligible to receive Medicare benefits upon reaching age 65. Federal income taxes are used to provide for national programs such as national defense; veterans and foreign affairs; social programs; physical, human, and community development; law enforcement; and interest on the national debt.
Understanding Taxes - Module 1 Payroll Taxes and Federal Income Tax Withholding
Since the beginning of the Social Security program, all securities held by the trust funds have been issued by the Federal Government.
There are two general types of such securities:
Today all securities held by the trust funds are special issues, but the funds have held public issues in the past.
- special issues—securities available only to the trust funds; and
- public issues—securities available to the public (marketable securities).
Special issue types and properties
There are two types of special issues: short-term certificates of indebtedness and long-term bonds.
The above properties of special issue securities are summarized in the following table.
- The certificates of indebtedness are issued on a daily basis for the investment of receipts not required to meet current expenditures, and they mature on the next June 30 following the date of issue.
- Special-issue bonds are normally acquired only when special issues of either type mature on June 30. The bonds have maturities ranging from one to fifteen years.
Special issue redemption rules[TBODY] [/TBODY]
Type of special issue Investment
frequencyMaturity Certificates of indebtedness Daily Next June 30 Bonds June 30 1 to 15 years
When special issues need to be redeemed prior to maturity, the securities are redeemed in order of
Special-issue securities Social Security trust funds
- Earliest maturity date;
- Lowest interest rate for securities with the same maturity date.
From the Social Security's web site
Social Security History
The law was changed to stop the use of the Trust Funds for any function in the unified budget, including calculations of the deficit. One sub-part of OBRA 1990 was called the Budget Enforcement Act (BEA), and it was this sub-part that specified this change in the law.
Omnibus Budget Reconciliation Act (OBRA) of 1990
Bill Text - 101st Congress 1989-1990 - THOMAS Library of Congress
EXCLUSION OF SOCIAL SECURITY FROM ALL BUDGETS-
Notwithstanding any other provision of law, the receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund shall not be counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of--
(1) the budget of the United States Government as submitted by the President,
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Deficit Control Act of 1985.
(b) EXCLUSION OF SOCIAL SECURITY FROM CONGRESSIONAL BUDGET- Section 301(a) of the Congressional Budget Act of 1974 is amended by adding at the end the following: `The concurrent resolution shall not include the outlays and revenue totals of the old age, survivors, and disability insurance program established under title II of the Social Security Act or the related provisions of the Internal Revenue Code of 1986 in the surplus or deficit totals required by this subsection or in any other surplus or deficit totals required by this title.'.
It means precisely what I said it did.
You evidently didn't understand it.
I understand it just fine.
So then you agree that Dem's moved the SSI funds to the unified budget to pay for other programs.
No. My stance has not changed. You can dress this up but it does not alter anything that I have said. In fact, I should have called you on this before. In post #55 you copied word for word from this link here:
Social Security money stolen by government The PPJ Gazette
Then you handed me his resources without having read that before.
I pointed out where the confusion points are. My stance has not changed. Now, simply because you insist the exact same thing that you did before does not change anything.