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To: rollo tomasi
The social security surplus has always been placed into the general funds and the social security trust fund given IOUs from the beginning of the program. It was the way the law was written. Your source is trying to claim that this was something new that Clinton did, it is not.

In other words every federal budget from the start of the social security program had the social security surplus included in it.

"The Social Security trust funds date back to the “Old-Age Reserve Account,” established under the 1935 Social Security Act. The act authorized Congress to appropriate funds to the reserve account and separately established a new payroll tax sufficient to provide those funds. However, because a recent Supreme Court decision (unrelated to Social Security) had raised questions about the constitutionality of appropriating the tax revenues directly to the reserve account, the act did not explicitly earmark those revenues to the account. Nevertheless, it was understood that Congress would simply appropriate the tax revenues for that purpose even without a statutory requirement to do so. By the time the act was first amended in 1939, the constitutional questions had been resolved, and the 1939 amendments provided for automatic appropriation of the payroll taxes to the reserve account. Under both the 1935 act and the 1939 amendments, the accumulated reserves were invested in interest-bearing Treasury securities, with the interest accruing to the reserves.

The Social Security Act provides that the funds are maintained “on the books of the Treasury.” The Treasury manages the Social Security accounts in much the same way that a bank manages a checking account: Accurate accounts are kept of the cash deposits and the accruing interest; cash (plus interest) withdrawals are allowed whenever needed; and in the meantime, the bank can put the cash to other uses. Thus, the Treasury uses procedures that fully and accurately account for the cash from trust fund tax income deposited with the Treasury and the interest that accrues on those deposits. Until the invested amounts are needed to pay benefits, the cash is intermingled with the Treasury's cash operations for the rest of the government. The size of the accumulated reserves is tracked by special Treasury securities. Those securities are issued to the trust funds both when cash from tax income is deposited and when interest is paid on the invested reserves. When Social Security benefits are paid, trust fund securities are redeemed for the cash to pay beneficiaries.

source-socialsecurity.gov

As far as counting the debt the government owes itself this debt has never been counted. One reason is because the government doesn't count future revenue either. Bottom line upfront is that if Clinton's budgets are held to the same standards as all other budgets since the creation of the social security program then he did balance the budget and reduce the debt.

75 posted on 02/11/2020 4:41:15 AM PST by OIFVeteran
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To: OIFVeteran

Did you not read the links?
The Federal Government did IOU accounting tricks which is HIGHLY UNETHICAL AND FLAT OUT WRONG when declaring a surplus. Sorry to say but you are in bootlicking territory by swallowing the propaganda. The National Debt went up, at least explain that in a logical manner.


79 posted on 02/12/2020 1:43:32 PM PST by rollo tomasi (Working hard to pay for deadbeats and corrupt politicians)
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