How does the Social Security surplus breakdown year to year historically?

[HankReardon]

It is estimated that for the year 2005 contributions to the Social Security System will be approximately $575 billion, money going out will be approximately $515 billion. This leaves a $60 billion surplus which will be added to the federal government's general fund and spent as it has been done since 1968. I would like to know what is the yearly breakdown on this surplus. Also, how much was in the Trust Fund in 1968 when it was moved to the general fund. Please tell me if any of my facts are wrong.

[HankReardon]

A letter was submitted to my newspaper asserting that most of the SS Trust Fund money was raided and spent while G.W. Bush has been President. He needs slammed, bad. I need facts.

[evad]

bump..
..hope you get an answer. I'd like these facts myself.

[Dad2Angels]

Here's a fact for you.

There is no such thing as a "Social Security Trust Fund'.

Every dime that gets deducted from our pay for SS goes directly into the General Fund.

[HankReardon]

The surplus goes to the general fund, not every dime.

[Dad2Angels]

Disregard previous post.

Reminder to self: Read original poster's entire post before responding.

[Dad2Angels]

Please disregard my post to disregard.

I believe you are wrong on this.

EVERY dime goes into the General fund, not just the surplus.

[HankReardon]

Yes, I do believe you may be correct. Do you mean the money for the Social Security checks come from the same place the welfare checks come from?

[Panzerfaust]

A tax by any other name is just as foul.........

[KarlInOhio]

http://www.ssa.gov/OACT/STATS/table4a3.html

[Drammach]

A letter was submitted to my newspaper asserting that most of the SS Trust Fund money was raided and spent while G.W. Bush has been President.

As has already been pointed out, all SS revenues go to the Congress General Fund.. ( Now for the "sleight of hand"..)

Social Security obligations are payed out of the General Fund as well, with any yearly surplus being "credited" to the SS Trust Fund
The Trust Fund is merely a book-keeping device, and has no factual existance..

All surpluses are "borrowed" by congress to pay for budgetary expenses, while the revenues / expenditures / surplus is used to "balance" the budget..
The "borrowed" surplus is accounted for by special Treasury Bonds, which, upon maturation, go into... guess where? The Trust Fund.. (whereupon they are "cashed in", and the resultant bond yeild is once again...( say it with me..) "borrowed" in the form of New Bonds...
These bonds cannot be bought or sold, as investment devices, they are limited to the borrowing of SS funds only.. And while their stated yeild upon maturation is approx. 4.5%, if they are cashed in early, they only yeild about 1.5%... not even covering the cost of inflation..

Let's not forget who is really paying back those bonds.. TAXPAYERS..

As for Bush raiding the SS Trust Fund.. He doesn't have access, and doesn't control spending.. Congress does..
And the fund has been regularly "raided" since Lyndon Johnson..

[Jimmy Valentine's brother]

Where have you been? FICA and Medicare go into the general fund that has been spent by congress since LBJ's great Society days. Al Gore's SS lock box contains IOUs from the Federal Government so you know what that is worth. The reason that all should be for privatization is plainly that this will reduce money available for congress to spend without advertise the real size of the Federal debt.

[scotiamor]

In fact, Bill Clinton's highly vaunted SURPLUS was totally composed of Social Security - his operational budgets had deficits all 8 years. His only cut in government spending was reducing the US Military, which he reviled - he cut the number of Army divisions from 18 to 10 - and now democrats complain there are not enough troops for Iraq, without once admitting the blood on their own hands.

[Mase]

Bump for later.

[stylin19a]

Assuming we want to keep SS as we know it,
Is it possible, that it could be saved simply by not putting the surplus into general revenue ? but rather put it into Al Gores' lock box ?

Then reduce the budget by a corresponding amount ?

Why or why not ?

[patton]

If Bill Gates sold his microsoft stock all in one day, what would happen to the price?

The SS trust fund, if it existed, would be trillions of dollars.

Where are you going to put it?

[eyespysomething]

I've got this hole in my back yard...

[mpreston]

Now take "Assets At End Of Year" and invest that money. There would be much more than $1.7 trillion dollars in the fund. Another way to look at it - since the money was spent from the general fund this is a -$3.4 trillion dollar "swing" in assets.

[stylin19a]

Thanks for the reply. I'm really not trying to be a smart-a$$, but during the 2000 Presidential run, I never saw a decent explanation why the "lock-box" idea wouldn't work.

I understand what you are saying...but I'm not sure that's a problem.

I have direct deposit, and pay my bills via direct with drawl.
I never see the physical money. Is it there ?

No different with SS. Dealing with balances and where they are applied, not the physical money.

I don't understand the Bill Gates reference in regards to this.

thanks for the reply.

[patton]

Great tag line.

The Bill Gates point is that you must do something with the money.

If the FED took 1.7 trillion dollars out of circulation, our economy would collapse. The reasons are complicated, but, believe me, they can't put it in a "lock box."

So what do they do with that much money? Buy microsoft?

What happens when they sell it?

See, the great lie about SS is that a "trust fund" that size is even possible.

It isn't.

[patton]

I suggest you move. That whole would swallow your entire neighborhood...