Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: goldstategop
In your working years, a part of your salary is taken through taxes and that money goes into your Social Security account. Upon your retirement, its paid back to you to look after you in old age.

You forgot your /sarc tag.

Seriously, I find it hard to believe that ANYONE paying ANY attention to the world today still believes in a "Social Security Trust Fund".... What you describe would be AWESOME... but, that's NOT how they do it.

You'd be better off telling us more about Santa Claus.

19 posted on 02/27/2013 8:05:00 AM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them)
[ Post Reply | Private Reply | To 10 | View Replies ]


To: SomeCallMeTim

answers:
‘The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury; they are not, nor have they ever been, put into the “general operating fund.”

However, the Social Security Act specifies that the monies in the fund may “be invested in securities backed by the full faith and credit of the Federal government,” such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can “invest” Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). This has always been the case.

During the Johnson administration, Social Security and other Federal programs that operate through trust funds were counted officially in the budget. This did not mean that it was actually part of the general fund, rather that it was finally recorded as part of the budget.’

THIS is propaganda.


26 posted on 02/27/2013 8:30:05 AM PST by griswold3 (Big Government does not tolerate rivals.)
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson