The Social Security Trust Fund Fraud, February 1999(IOU's, who repays?, and when?)

The Heritage Foundation ^ | February 22, 1999 | Daniel J. Mitchell, Ph.D.

[Son House]

Social Security benefit payments soon will exceed payroll tax revenues. Beginning in about a dozen years, these annual cash-flow deficits will begin to climb rapidly, soaring to $100 billion in 2015 and $500 billion in 2025.

The Social Security Trust Fund is a deception. It contains no genuine assets, only government bonds--IOUs that have no value beyond a promise to impose higher taxes on future workers.

"When the government issues a bond to one of its own accounts, it hasn't purchased anything or established a claim against another entity or person. It is simply creating a form of IOU from one of its accounts to another." 8 And just as an individual or a business cannot write an IOU to itself and count that as an asset

In reality, the Trust Fund's holdings simply measure that one part of the government--the Treasury--owes money to another part of the government--the Social Security Trust Fund.

Indeed, the best possible interpretation of the Trust Fund is that the IOUs are a measure of how much taxes will have to be raised in the future.

A group of government actuaries acknowledged this fact, writing that "we are not accumulating a true trust fund and are instead merely accumulating a right to future government revenues." 11

"Where would the cash required to pay the principal and interest on the bonds come from?"

Their answer: "The Treasury would have to (1) increase its borrowing from the private sector and from other countries to raise the cash necessary to fund the deficiency in the OASDI program, or (2) raise taxes." 13

[devolve]

 WHAT  NOW  MY  LOVE? 

NOW  THAT  YOU'VE  LEFT  ME?

[potlatch]

Good, again!! Lol

[Son House]

Kennedy, I’d like to extend and revise the Education bill to include those poor Mexican children that escaped that dismal land to the south of Texas.

Kennedy, I’d like to extend and revise the Social Security bill to include those poor Mexican adults that escaped that dismal land to the south of Texas.