“The Social Security Trust Fund does not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures.”
“Congress needs to stop raiding the Social Security trust fund to pay for unrelated government spending. The American people are right to demand an end to this shameful practice… For over 30 years, Congress has spent the Social Security surplus on other government programs, and it’s a safe bet that this will continue unless we can enact legislation that requires a change.”
“The government has lied to you, and they have stolen from you. They told you that your Social Security money is in a trust fund. All that’s in that trust fund is a pile of IOUs from money they spent on something else a long time ago. And they stole it from you because now they know they cannot pay these benefits, and Social Security is going to be insolvent in seven to eight years”
Much to my disappointment, however, the actual cash surplus from the excess payroll taxes, amounting to $2
“Money that taxpayers have paid into Social Security for their retirement should not be used to pay for everything from foreign aid to defense to public housing. That is just plain dishonest.”
These bonds are backed by the full faith and credit of the federal government and they earn interest, but these bonds are not “real” assets with cash value
“Last night while you were sleeping the Senate voted to steal $150 billion dollars from the Social Security Trust Fund. I joined 34 of my colleagues in a vote to prevent this raid. I would like to thank Senator Rand Paul for leading the fight to protect to Social Security from the thieves in Washington, who seem to think that if they steal from the American people at night while they are sleeping that they will get away with it.”
“The government has borrowed more from the Social Security surplus than it has from any other source in the world, including China. As a result, Social Security now “owns” nearly 18 percent of the federal debt, making it the largest single holder of US debt. The government owes almost twice as much to Social Security as it does to China and Hong Kong. Why aren’t the opponents worried about paying back Social Security – why aren’t they talking about repaying this debt to the American people?”
“In 1983, Congress raised the payroll tax rate that funds Social Security benefits to prepare for the retirement of the baby boom generation. 4 trillion including interest over the last 25 years, was borrowed from the Trust Fund installment loans in Bloomington IN and used to support government spending on other programs. In return for the borrowed funds, the Social Security Trust Fund was credited with Treasury bonds. Instead, they merely represent a first claim on future revenues. If the revenues are not there (and they will not be as long as the government continues to run budget deficits), then the federal government will have to raise taxes or cut other spending to finance promised Social Security benefits. This is gross financial mismanagement. We don’t have enough trust funds with money in them to satisfy the demands put on our government. We need to start making the right choices.”
“Congress has a duty to preserve the Social Security program for workers and retirees who have played by the rules and paid into Social Security throughout their careers. Congress must also work to make the program sustainable for future generations. For years, the Social Security trust fund ran surpluses, but unfortunately nothing prevented the government from spending those surpluses on unrelated government programs. That is completely unacceptable.”