dint they just LOWER the deduction rate???
Posted on 05/15/2011 7:45:26 PM PDT by MulberryDraw
Note this one well folks:
"Medicare, the government health plan for seniors, will exhaust its principal trust fund five years sooner than previously thought, which could heighten pressure on the White House and Congress to change the program as part of deficit-reduction negotiations."
Wait a second.... didn't we just hear this from Timmy about the need to borrow more money?
"If the United States were forced to stop, limit or delay payment on obligations to which the Nation has already committed - such as military salaries, Social Security and Medicare, tax refunds, contractual payments to businesses for goods and services, and payments to our investors...."
Busted jackass.
Tim Geithner just admitted in writing that there is no trust fund - there is no money - the Government in fact blew every last penny of it.
You, America, have been serially lied to about these so-called "trust funds."
THEY DO NOT EXIST.
(Excerpt) Read more at market-ticker.org ...
I have relatives—frankly, somewhere, I think we all have had some of these—who have swindled relatives out of savings, businesses, futures. Or flat out steal them, or, fail to pay up. Or, commit fraud.
You want to say they get their just desserts. Well, sometimes you do.
It’s cost lives and livlihoods in my own family. That, I do know.
Oh, and no one I know has ever worked in Medicare, Social Security, Medicaid or the DoT. Forgot to mention that.
But the article did make me remember the nightly dinner lectures on the evils of welfare, social security and FDR.
dint they just LOWER the deduction rate???
Bet there’s a trust fund for congressional/gov’t pensions. Not that they’d tell us about it though.
Doesn’t the law require trust funds? Arrest these guys.
“fund for congressional/gov’t pensions”
Their health care, working rules, pay and retirement benes are all different, from what I know, which isn’t much.
Someone here wrote one time about a flat fee of something like $500 paid as a yearly fee — by Congressmen/Senators for having a pharmacy and doctor’s office on site.
And these ‘people’ want to tell us how to live.
Geithner got caught telling the truth, but he will lie his way out of it.
I understand that every President has used the trust funds even Reagan.....that is rather disappointing. I don’t understand why any president would use the trust fund.
There was a “trust fund”, sort of, until 1968.
That is, social security was a separate deal, accounting wise. Because of huge budget deficits, LBJ administration decided to count the social security taxes as part of the general fund - and even claimed a balanced budget.
The “special issue” treasury bills issued as part of social security trust funds are “special” only, as far as I can tell, in that they are not marketable, so in that sense they are an IOU for yet another IOU - the money will have to be borrowed.
As an aside, Fannie Mae was run by the government up until 1968 as well, then it was spun off. Now it’s back on the government balance sheet for a second time, after having been thoroughly wrung for hundreds of billions of dollars. Now the taxpayer can be on the hook for that as well.
The trust funds are part of the $14.3 trillion national debt. The are held under “Intragovernmental Holdings” as distinct from the publicly held debt. The trust funds are an unfunded liability, which is why they are part of the national debt.
The US government certainly does have trust funds for Social Security and Medicare. Every year I get a statement from Social Security that explicitly reminds me of their existence. The little people just have to trust the government about this and everything will be okay.
Not since 1968.
When SS and Medicare are in the red, the trust fund T-bills are redeemed by the USG in the amount needed to pay the amount of the shortfall to pay benefits. So the reality is that the General Fund must come up with the money to redeem the T-bills (read IOUs,) which is usually done by borrowing more money or increasing taxes. The T-bills are non-market, which means that only the USG can redeem them and they can't be sold on the public market. The reality is that they are unfunded liabilities, which is why the trust funds are part of the $14.3 trillion national debt.
When SS and Medicare are in the red, the trust fund T-bills are redeemed by the USG in the amount needed to pay the amount of the shortfall to pay benefits. So the reality is that the General Fund must come up with the money to redeem the T-bills (read IOUs,) which is usually done by borrowing more money or increasing taxes. The T-bills are non-market, which means that only the USG can redeem them and they can't be sold on the public market. The reality is that they are unfunded liabilities, which is why the trust funds are part of the $14.3 trillion national debt.
The idea here is basically correct. However, this statement is usually joined to a second statement to the effect that this principle was violated by subsequent Administrations. However, there has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government.
The Social Security Trust Fund was created in 1939 as part of the Amendments enacted in that year. From its inception, the Trust Fund has always worked the same way. The Social Security Trust Fund has never been "put into the general fund of the government."
Most likely this myth comes from a confusion between the financing of the Social Security program and the way the Social Security Trust Fund is treated in federal budget accounting. Starting in 1969 (due to action by the Johnson Administration in 1968) the transactions to the Trust Fund were included in what is known as the "unified budget." This means that every function of the federal government is included in a single budget. This is sometimes described by saying that the Social Security Trust Funds are "on-budget." This budget treatment of the Social Security Trust Fund continued until 1990 when the Trust Funds were again taken "off-budget." This means only that they are shown as a separate account in the federal budget. But whether the Trust Funds are "on-budget" or "off-budget" is primarily a question of accounting practices--it has no affect on the actual operations of the Trust Fund itself.
Many of us have known this for years but for those who are collecting thinking they are getting what they paid in it is important for them to realize that the money is being borrowed and what they were owed is long gone.Look at your Grand kids they are the ones who will be paying for it all.
Nope in 1965 a democratic presdient and congress directed all of the funds into the general fund which they have been spending as overages for years.
OPPPSSS 1968,sorry,
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