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It's a tax, so they can take part of the money and do other things with it. And they have from time to time. They are not remitting the full tax receipts to t
by turc1656 7y ago
It's a tax, so they can take part of the money and do other things with it. And they have from time to time. They are not remitting the full tax receipts to the Social Security Administration for disbursement. Which instead of having them buy US debt, actually creates the need to create more US debt because they have obligations to meet and the SSA is locked into certain debt instruments that can't be exited on large scale easily.
EDIT: This is not correct. It appears they have borrowed against the SS fund using treasuries, which will have to be back. Or phrased another way - the SS system chose to invest in US debt.
- lotsofpulp 7y agoAny sources? These reports don't support your statements: https://www.ssa.gov/policy/docs/chartbooks/fast_facts/2019/fast_facts19.html#page35 https://www.ssa.gov/policy/docs/chartbooks/fast_facts/2019/f... https://www.ssa.gov/agency/performance/ https://www.ssa.gov/agency/performance/ And I don't know of a debt instrument that can be exited more easily than US Treasuries: https://www.ssa.gov/news/press/factsheets/WhatAreTheTrust.htm https://www.ssa.gov/news/press/factsheets/WhatAreTheTrust.ht... This interview with a prominent actuary who worked in the Social Security admin is also very helpful to clarify the workings of SS: https://us14.campaign-archive.com/?u=bd0d1b66f832083794c33c979&id=d540b66d82 https://us14.campaign-archive.com/?u=bd0d1b66f832083794c33c9...
- turc1656 7y agoThank you for this. It appears I was lied to. The person that told me this is not someone who usually neglects to do their research and verify things, so by extension I did not. I have edited my response above accordingly. Much appreciated.