http://theccpp.org/2011/06/obamas-debt-limit-scare-tactics.html
...the Obama administration is threatening to cut off Social Security benefits as well unless they get their “clean” debt limit increase without any spending control.
But that would only be by the choice of President Obama, because cutting off Social Security benefits in any way would not be necessary even without a debt limit increase. Social Security payroll taxes would again still continue to be paid in full, which the Social Security Administration estimates would total $564.7 billion for this year. Social Security benefit payments are estimated to cost $727.3 billion for the year, leaving a deficit of $162.6 billion to be covered if benefits are to be paid in full.
The federal government, however, doesn’t have to borrow from the general public, increasing the national debt, to cash out the Social Security trust fund bonds necessary to cover this shortfall. It can pay off the bonds out of other incoming tax revenue as well. With federal individual and corporate income tax revenue, and excise taxes, totaling $1,257.5 billion, even with $206.7 billion going to pay debt interest, that still leaves $1,050.8 billion, or over $1 trillion, more than enough to cash out $162.6 billion in Social Security trust fund bonds without any additional borrowing.
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