[Copernicus]

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Doesn't that explicitly state that it goes to the general fund, but then an equal amount, not a piece, is put into the SS fund?

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Congress is required to keep an accounting of the monies collected as "ssi tax" and keep a record of the surplus, and the interest the surplus collects when it is given to the general fund to help pay the deficit. <font color="red"> Nothing is "given" to the general fund. Treasuries are SOLD to SSA. The proceeds from the sale pay the deficit like any other borrowing pays the deficit. </font>

That is why we have a 3 trillion dollar ssi "surplus" which is a total of all surplus monies collected and the interest on same, since it was given to the general fund. <font color="red">The reason there is a surplus (I havent looked at the number for a while, 3 trillion sounds high) is because taxes + interest &gt; benefit payments + expenses. Its that simple. </font>

The problem is that there is no way to pay back the 3 trillion dollars without raising taxes. <font color="red">Of course there is. The same way you balance any budget, cut spending (not SS spending, on budget spending) </font>

When congress reports they have a 500 billion deficit this year, they account for that deficit this way (figures are made up for purpose of example)

Payroll taxes 400b
Corp taxes 400b
ssi taxes 600b
total 1.4 trillion

total outlays (including ssi benefits which was 300b, 1/2 of what was taken in) 1.9 trillion

We therefore have a 500 billion deficit. But we really have a 800 billion deficit, because congress took the 300 billion surplus from ssi taxes to use for the general fund. <font color="red"> Use real numbers and then call out anyone who accounts for it this way, because they are lying. Social Security is an off budget item, and official budget deficits are reported without any consideration of Social Security. If a politician wants to lie about it, thats the politicians fault, not SS's </font>

But that is not what congress reports as the deficit. They report it to be 500 billion. <font color="red">wrong </font>

They then issue IOUs to the ssi fund, which accrues interest. They also issue more IOUs each quarter to pay for the interest on the 3 trillion they already owe. <font color="red"> Yup, thats what a Treasury bond/bill, CD, corporate bond etc. is, an IOU. so what? </font>

That is how Clinton supposedly balanced the budget one year. The deficit was less than the ssi surplus that year <font color="red"> Speaking of liars. This wouldnt surprise me, but I doubt he lied that blatantly. Link? </font>

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