That clock is BS. Medicare and Social Security are not budget items. They are paid out of separate taxes. Social Security is not an unfunded liability. It is funded through a payroll tax. The tax has produced a surplus over the years and it has been invested in Government bonds.
No, FICA is not mixed with the general account fund. It is off budget meaning not part of the budget. When FICA collects more than what is paid to retirees then SS buys government bonds that it holds in two separate trust funds. When FICA does not collect enough to pay the retirees then SS will cash some of the government bonds that it holds in two separate trust funds. The trust funds are "off-budget" and treated separately in certain ways from other federal spending, and other trust funds of the Federal Government. From the U.S. Code:
They gov is lying to you Tburke.
Read the whole article...
The pretense is that a flush trust fund will pay retirees for the next 26 years. Lovely, except for one thing: The Social Security trust fund is a fiction. … In other words, the Social Security trust fund contains—nothing.”
Social Security status-quo defenders have assured us for the past 25 years that Social Security is fully funded—for the next 25 years, or 2036. So if there are real assets in the Social Security Trust Fund—$2.6 trillion allegedly—then how could failure to reach a debt-ceiling agreement possibly threaten seniors’ Social Security checks?
The answer is that the federal government has borrowed all of that trust fund money and spent it, exactly as Krauthammer asserted. And the only way the trust fund can get some cash to pay Social Security benefits is if the federal government draws it from general revenues or borrows the money—which, of course, it can’t do because of the debt ceiling.
Thus, the answer to my initial question is that the president is telling the truth now in the sense that he is conceding there’s no money in the trust fund to pay benefits; but he and other Social Security status-quo defenders have been deceiving the public for decades.
If the budget crisis has done nothing else, it has exposed the decades-long lie about the solvency of the Social Security trust fund. The trust fund may be backed by the “full faith and credit of the federal government,” as defenders constantly remind us, but if it had real assets the president wouldn’t be talking about seniors missing their checks.
All these doom and gloom is media driven
and we all know who owns that. Until than
I will keep on Rocking in the free world!
Life is short so enjoy what u got. Dj.
The Social Security trust fund is invested in government bonds. Those bonds are part of the National Debt. When SS cashes those bonds it does not increase the government debt. If the govt borrowed $10million to redeem bonds and pay off $10million debt then it is a wash as far as debt goes.The main point is the clock calls SS a budget item and it is not. The owners of the clock site are hidden and nobody can find out who they are. But the clock is propaganda and no more just trying to scare people.