There is NO Trust Fund. Every single penny of your payroll deduction for FICA goes into a General Fund and is spent almost immediately on current budget and non-budgetted items. Period.
But, the government does keep a running total of all FICA collected, and they subtract all Social Security paid out, this year, and the net is what is credited to the 'trust fund', which is actually a book keeping entry which shows what the government owes the people.
That money is not in any bank account, not in any stock, not in any fund, not in any safe, not under any mattress. It DOES NOT EXIST.
When the government needs to pay you your Social Security payment it takes it out of the FICA payments everyone else made that month. When the amount of money being collected thru FICA is less than the required payments the government will either have to print more money, borrow more money, raise taxes, OR CUT EXPENSES ELSEWHERE.
USA Today says: "It is true that in dollar amounts the rich have gained the most."
"Millions of lower-income Americans � those earning $25,000 annually or less � have been taken off the federal tax rolls. In 2000, roughly 29 million tax returns had no federal tax owed. Four years later, the number rose to about 43 million returns."
Millions of those lower-income Americans are no longer paying taxes because they were force into the rolls of the permanently unemployed by Bush's reckless economic policies. Read the entire article and you will understand why an overwhelming majority of taxpayers wisely selected Democratic candidates on November 7th.
<Every single penny of your payroll deduction for FICA goes into a General Fund and is spent almost immediately on current budget and non-budgetted items. Period.>
Actually the SS Trustees' report for 2005 shows that Social Security paid out benefits of $520.7 billion amounting to 87.8% of the $592.9 billion net contributions (mostly FICA payments). That $520.7 billion never entered the General Fund.
The amount entering into the General Fund last year was the $171.8 billion SS SURPLUS. That amount was wasted by the Bush administration on the Iraq occupation and other expenditures authorized by the Republican Congress in cahoots with the evil and incompetent Bush administration.
<reducing taxes, which is the mantra of the Reps, is the right thing to do>
Yes, reducing taxes is the right thing to do so long as the right taxes are reduced. Bill Clinton and Al Gore did it the right way resulting in the greatest stock market boom and economic prosperity the world has ever known. Bush reduced taxes for the wealthy leaving crumbs for the lower and middle classes. AA's stock price is now about 28-29, virtually the same as when the Supremes selected Bush to be inaugurated on 1-21-2001.
Given the 2 examples they have been offered over the past 12 years the Democratic Congress should have no difficulty choosing the correct paths to prosperity and peace. That is why I am bullish on stocks now, even poor mismanaged AA.
The SS trust fund exists in the form of Government bonds, worth about $1,858.7 billion on Dec. 31, 2005, and over $2.0 trillion worth today. See the 2006 report of the trustees of the Social Security administration:
Ask yourself one question: If at some future date the U.S. government chooses not to honor bonds held in the SS trust fund, but the government does choose to honor U.S. government bonds held in the banks of Saudi Arabia, China, Venezuela, and other U.S. creditors, what do you think will happen to that government in the following election?
The answer of course is that government, Republican or Democrat, will be voted out of office in record numbers in the next election and in several elections thereafter. That is why the Repubican/Bush lie about the SS trust fund not existing is not credible.