KMA-628, isn't the real dilemna that the Bushco didn't "purge" the SSA web
page containing the trust fund asset information before Bush declared that
it doesn't exist?
If the SSA trust fund's bond portfolio has no value, what does that tell the
Japanese or the Chinese, who probably don't regard their combined $1 trillion
Treasury Bill holdings as "valueless".
The POTUS is obligated to advocate responsible tax and budgetary policies.
Past presidents, and even Bush, until it no longer suited his new message,
reassured workers and retires as to the viability of SSA. Bush is taking the
wronf approach, and attempting to take the easy way out. Why the sudden
shift to a tax policy that favors the wealthiest? Why should what remains of
the middle class endorse the president's continuing agenda of shifting wealth
and tax burden from the lower 80 percent of American's to the wealthiest
20 percent? There are other alternatives. Let the sunset provisions of
Bush's tax cuts expire, leave inheritance taxes in place.....the wealthy simply
purchase affordable instruments, for example, "second to die" life insurance
policies on wealthy parents mitigate much of the impact of the "death tax".
Remove the $90,000 and above earned income cap on SSA payments. The
wealthy paid for Bush and his agenda, and they are in the process of getting
what they paid for, while some of us watch in frustration, and others willingly
co-operate in Bush's wealth shifts away from themselves and their children.
You are saying the same thing that Bush said. SSA's site contradicts both of you.
Quote:
Tax income is deposited on a daily basis. That part not immediately needed to pay benefits or administrative expenses is invested by purchasing "special issue" securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash in the general fund.
Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special issue" securities are redeemed, interest is paid. In fact, the amount of special issues redeemed is just enough so that this amount plus the corresponding interest covers the expenditure.
As stated in the answer to "What happens to the taxes that go into the trust funds?", most of the money flowing into the trust funds is invested in U. S. Government securities. Because the government spends this borrowed cash, some people see the current increase in the trust fund assets as an accumulation of securities that the government will be unable to make good on in the future. Without legislation to restore long-range solvency of the trust funds, redemption of long-term securities prior to maturity would be necessary.
Far from being "worthless IOUs," the investments held by the trust funds are backed by the full faith and credit of the U. S. Government. The government has always repaid Social Security, with interest. The special-issue securities are, therefore, just as safe as U.S. Savings Bonds or other financial instruments of the Federal government.
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SSA claims that they constantly buy and sell "securities" in order to pay
benefits. Bush and apparently, you, want to separate the government's
obligation to redeem outstanding securities "on demand". Why is this bond
portfolio your target? Are American workers more gullible or less worthy
than Asian treasury bond holders? Why doesn't Bush tell them that their
U.S. treasury holdings are "worthless IOU's" ? Can't you recognize that
Bush is acting in a dangerous, desperate, and duplicitous manner? He is
hoping to talk down the value and risk of just one class of government
bond. By doing this, he doesn't pass the test of representing the best interests of all Americans. He should be impeached.