Tilted Forum Project Discussion Community - View Single Post - Bush's plan to forfeit your SS account profits

guy44 · 02-07-2005, 01:49 PM

I believe that it is general revenue, but in the next few years as less people are paying taxes for more Social Security recipients (the Baby Boomers) the size of the Trust Fund decreases as more and more is used to cover whatever taxes themselves don't. However, the Trust Fund also has about $11 trillion dollars in IOUs from the federal government that, when the general revenue dwindles down around 2018, will need to be called in.

You are right that it is misleading to call actual funds the sole source of funding when there are still IOUs laying around. The only way that is the case is if we were to know, definitively, that the federal government had no intention of honoring those IOUs (i.e. Treasury bills).

02-07-2005, 01:49 PM	#93 (permalink)
guy44 Somnabulist Location: corner of No and Where	I believe that it is general revenue, but in the next few years as less people are paying taxes for more Social Security recipients (the Baby Boomers) the size of the Trust Fund decreases as more and more is used to cover whatever taxes themselves don't. However, the Trust Fund also has about $11 trillion dollars in IOUs from the federal government that, when the general revenue dwindles down around 2018, will need to be called in. You are right that it is misleading to call actual funds the sole source of funding when there are still IOUs laying around. The only way that is the case is if we were to know, definitively, that the federal government had no intention of honoring those IOUs (i.e. Treasury bills). __________________ "You have reached Ritual Sacrifice. For goats press one, or say 'goats.'"