The extra money the 1983 law collected was to be set aside for the baby boomers retirement. SS has collected more than needed for 24 years by a wide margin.
The extra money was “invested”, not in the markets, but in government IOU’s.
Which every politician on that stage has spent and squandered in addtition to the regular tax receipts.
Those IOUs will have to be redeemed by taxes collected on our children.
Which means the American citizens will have paid twice for the same benefits.
The biggest financial scam ever perpetrated by Congress.
Those IOUs will have to be redeemed by taxes collected on our children.
Social Security is going to start suing to collect from those children as baby boomers burst the budget.
No it hasn't. It is a pay as you go system. Any "surplus" is deposited into the General Fund and the Treasury issues non-market T-bills in the amount of the surplus for deposit into the SSTF. Actually, those are IOUs. Here is the 1983 law: P.L. 98-21, (H.R. 1900)
Without using the "surplus" the USG would have to borrow real money to fund operations. They would then have to raise taxes or curtail spending. It is far easier to maintain the charade of a separate SS that is really just another form of income tax. Approximately 80% of Americans pay more in payroll taxes than they do in income taxes.