Skip to main content

View Diary: NPR falsifies "facts" about Social Security (184 comments)

Comment Preferences

  •  Third point (1+ / 0-)
    Recommended by:
    Blueslide

    I would quibble with your contention that the third fact is wrong. Payroll taxes are dedicated and paid to the SS trust fund. Treasury obligations to reimburse come out of the general fund and increase the deficit in the federal government's budget. The law requires reimbursement of the trust fund from the general fund "at such times and in such manner as to replicate to the extent possible" the decreased payroll tax revenue. "To the extent possible"? "At such times and in such manner"? I don't know about you, but given the insanity taking place in Congress around the federal budget deficit, that's not language I would take to the bank.

    "Favoring the use of torture is not a political position, it's a mental illness." -- Devilstower

    by scorponic on Thu Dec 08, 2011 at 07:19:00 AM PST

    •  Yes (0+ / 0-)

      Republicans call this type of funding "deficit spending". I am really not looking forward to saying "I told you so" to all the folks that supported the payroll tax cut. This is step one in a two step process to kill Social Security.

      -7.5 -7.28, I refuse to believe corporations are people until Texas executes one.

      by Blueslide on Thu Dec 08, 2011 at 08:10:19 AM PST

      [ Parent ]

    •  Did Trust Fund revenue decrease. No. (0+ / 0-)

      The author stated falsely that the trust funds revenue went down by the amount of the tax cut.

      Trust fund revenue did not decrease one cent. Trust fund revenue was not delayed one day. The transfers from the treasury arrive at roughly the same time and in the same amounts as the taxes would have. The words "to the extent possible" is simply there because they cannot replicate payroll tax receipts exactly since they are still getting  some money in the bond market. I see the monthly financial statements of the trust fund, and every month they are getting credited with the appropriate funds from the Treasury.

      The point is this, the law does not say, we'll pay back the Trust fund is we have spare money lying around, or if we feel like it, or if it doesn't interfere with funding this new technology park back in my district. It says the treasury must make the Trust Fund whole in real time as if none of this ever happened.

      Consider the following. What would happen if Congress did not order the Treasury to replace the funds? Then in that case The Trust Fund's managing Trustee, the Secretary of treasury would have called in the exact same amount of lost funds from the special Treasury bonds held by the fund. That's right The Social Security trust fund bonds are callable. Treasury has to give them cash for the face value of the bond when they need it.

      So the secretary of the treasury would require the secretary of the treasury to borrow $!05 billion to pay current beneficiaries. NO one would notice a thing until about 2035 when the Trust fund would exhaust a few months earlier than planned.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site