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View Diary: Giving a Right Winger Pause (56 comments)

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    SSA payroll taxes collected way more than they needed. That money was supposed to be put into special T-Bills to build interest, and it was, but the reality is those funds ended up in the U.S. General Fund.

    My right-winger started to heat up. "And they spent the money! Those bastards!"

    It was the Greenspan Commission in 1981 that recommended increasing the tax to put away money for the coming Baby Boomer retirement.  It was Congress and President Ronald Reagan in 1983 who passed the law that set the tax rates.

    The extra money WAS invested in special Treasury bonds.  And interest is paid to Social Security.  Of course the money was spent...duh.  What else is done with the proceeds of Treasure bond sales?

    The crunch is now that the Baby Boomers are retiring and those bonds must be redeemed.  The money has to be found, either from increased general taxes, or more borrowings, or cuts in other programs, or cuts in Social Security.  The rich who own this country want the last two options.

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