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View Diary: Ronald Reagan: 'Social Security has nothing to do with the deficit' (81 comments)

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    The government (or general fund) doesn't take money from the trust fund.  The trust fund buys government bonds with the growing surplus.  Those who think the money should be stashed under the bed or something would probably be screaming even louder if that money wasn't invested to earn income.  And those treasuries would be sold somewhere else if the trust fund didn't buy them (do I hear fearful screams of "China!").  I believe those monies are only allowed to be put into treasuries by law (I could be off on that one).  Furthermore, the trust fund DOES have income (interest) from those investments every year.  That is one reason that although we are taking in less in employment taxes (thanks, Obama) than we are paying out in benefits, SS still has a net positive income - from that interest and certain taxes on SS income.
    So all those screaming about how the government "stole" our money are way off the mark.

    If humans fought wars like cats, the troops would stop every 30 seconds to lick themselves. This would make for very interesting news footage.

    by paironoids on Wed Dec 19, 2012 at 11:20:20 AM PST

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