Social Security Trust Fund
By Daryl L. Hunter (1999)
Although I wrote this in 1999 the same problems exist but are worse now,
the numbers are higher but the dynamic remains the same.

It is a shame that our Social Security Trust Fund has had the United States Congress as it's Trustee. It has been used, borrowed, misappropriated, commingled and hijacked. A trust fund in the private sector managed as this one would have the trustees in jail.

The 106 congress has claimed to have put the Social Security Trust Fund in a Lock Box so the Trust Fund isn't any longer used as a Congressional and Presidential slush fund. However apparently the Lock Box is rhetoric over substance because the Fund remains part of the General Fund in the The United States Treasury instead of in an interest bearing, or investment account of it's own.

Before I go any farther I would like to point out that the so called Social Security Surplus is not a surplus, but a remnant of the American Peoples equity in their grossly mismanaged collective retirement fund. Not surplus discressionary spending funds for the politicians. The term surplus alludes to the mistaken belief that they are not needed where they were originally targeted for, the Social Security "Growth" Trust Fund. So whenever you hear any politician talk of the Social Security Surplus transpose the word surplus to equity so you will be more aware of what you are being screwed out of.

Our Government continues to use the current and temporary Social Security surplus to credit our National Debt by commingling the Social Security Trust Fund with the General Fund. This is smoke, and mirrors and our legislators Republican and Democrat alike know this. Yet still they use this hocus pocus accounting to push their own political agenda's.

The optimistically projected 10 year budget surplus of 3,000,000,000,000 (three trillion dollars) is bolstered by the so called Lock Box of the Social Security Trust Fund that shouldn't be commingling inside the General Fund in the first place. If you subtract the Social Security Trust Fund surplus/equity (2 trillion Dollars) from the General Fund surplus (3 trillion dollars) you find the real projected surplus of 1 trillion Dollars.

The Republicans want to refund 800 billion dollars of this "surplus" to us taxpayers, you, me, and Wall Street, and use the remaining estimated 200 billion to pay down our National Debt of 5,600,000,000,000 (5.6 trillion Dollars). OK, Lets all spit in the ocean and see whether we can raise the tides. If you don't live near an ocean, spit in your nearest creek, the result will be the same. This irresponsible double counting of commingled money renders the Republicans incompetent trustees of the Social Security Trust Fund.

The Democrats are paying major lip service to paying off the National Debt however their dedication to Lyndon Johnson's Great Society and Franklin Rosevelts New Deal and all their socialist programs render them incapable of fiscal responsibility, therefor incompetent trustees of the Social Security Trust Fund.

Our respective parties rational (or should I say rationalization) is that the 3 trillion dollar combination of the Social Security Trust Fund surplus/equity and the General Fund surplus, credit our 5.6 trillion national debt. A smoke and mirrors way supposedly reducing the debt by 2 to 3 trillion dollars depending on the Party's plan.

As good as that sounds, the 2 trillion dollar surplus (the supposed Lock Boxed Social Security Trust Fund) is earmarked to fund the Social Security needs for the baby bust years when the baby boomers begin drawing from the Social Security trust fund, rapidly turning the Social Security Trust Fund Surplus/equity into the Social Security Deficit. So that by whoever's plan you go by the General Fund benefits by accounting tricks only, because when the baby boomers turn the Social Security Trust Fund into a Deficit, the Social Security benefits will have come out of the mismanaged, commingled General Fund compounding the problem of the collectively ignored, abused, neglected and defrauded National Debt.

# What Can We Do

#1We as American voters must do what we started in 1994. We had a populist uprising at the ballot box that restored my faith in our American System. We upset the status quo, and we need to do it again. Both parties survive on pork barrel politics which all of us are guilty of supporting. Consequently, we are all paying the price of our own selfish needs by demanding our own piece of pork by supporting legislators from our home districts that bring home said pork. We need to support legislators that can stand on principal and vote for the collective good of this great country.

Citizens For A Freer America supports the campaign finance reform that will benefit the Democrats more than Republicans although this kicks us conservatives where it hurts (soft money) we must stand on principal and help end soft money contributions, the source of "out of district" pork barrel spending which is decimating the judgment of our legislators of both parties. Unlimited campaign contributions from Wall Street, Labor Unions, and China must STOP!

If the Pork Barrel Culture of our legislators can't be stopped Citizens For A Freer America will have to start a term limit advocacy. However, today we are not for term limits because it is senseless to discard moral, conscientious, effective legislators due to a limit on time brought on by legislators engaging in pork barrel spending, recklessly endangering the Social Security Trust Fund the General Fund and the trust of the American People.

#2 We must demand that the Social Security Trust Fund Remains separate from the General fund in an account of it's own where the American people can monitor it, and a board of trustees can hopefully make it grow.

#3 Commingling is against the law in the private sector, and it should be against the law for the government also. We should only count our national assets once if we really want to know our nations bottom line. We do want to know our bottom line don't we. For other ideas see our Think Tank.

Please help support Citizens For a Freer America in our effort to keep America financially safe by holding our legislators feet to the fire.


Food For Thought

Your Social Security Just in case some of you young people (& some older ones) didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your kids. They need a little history lesson on what's what. Our Social Security

Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

1.) That participation in the Program would be completely voluntary,

2.) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program,

3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year,

4.) That the money the participants put into the independent "Trust Fund" rather than into the general operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other government program, and,

5.) That the annuity payments to the retirees would never be taxed as income.

Since many of us have paid into FICA for years and are now receiving a Social Security check every month -- and then finding that we are getting taxed on 85% of the money we paid to the Federal government to "put away" -- you may be interested in the following:

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Q: Which Political Party took Social Security from the Independent "Trust Fund" and put it into the General fund so that Congress could spend it?

A: It was Lyndon Johnson and the democratically controlled House and Senate.

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Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?

A: The Democratic Party.

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Q: Which Political Party started taxing Social Security annuities?

A: The Democratic Party, with Al Gore casting the "tie-breaking" deciding vote as President of the Senate, while he was Vice President of the US

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Q: Which Political Party decided to start giving annuity payments to immigrants?

AND MY FAVORITE:

A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!

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Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away!

And the worst part about it is uninformed citizens believe it!


'Above All, Try Something'
What FDR really said about private Social Security accounts.

Exerpt from John Fund Wall Street Journal Article

Today's supporters of Social Security reform recognize Roosevelt's achievement and are merely hoping to update it using the miracle of compound interest and today's far more sophisticated private investment vehicles. Conservative commentators, including me, have suggested that Roosevelt himself recognized the importance of private-sector retirement plans. This has prompted a flurry of outraged attacks from liberals who accused us of lying about Roosevelt's record. They should calm down, as we look at the facts..................................................................But Roosevelt had indeed proposed a plan under which all workers would have been allowed to make periodic voluntary payments in exchange for certificates representing the amounts they had deposited. At 65, workers would have been able to trade in their certificates for annuities that paid up to $100 a month (the 1935 equivalent of some $1,300 today) based on their total deposits plus interest. In fact, Roosevelt expressly cited the need for private plans to become available as the worst of the Depression passed: "I am greatly hoping that repeated promises of private investment and private initiative to relieve the government in the immediate future of much of the burden it has assumed will be fulfilled."---------------------------------------------- More

Subject: History Lesson on Your Social Security Card

Just in case some of you didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your family and friends. They need a little history lesson on what's what and it doesn't matter whether you are Democrat or Republican. Facts are Facts.

Social Security Cards up until the 1980s expressly stated the number and card were not to be used for identification purposes. Since nearly everyone in the United States now has a number, it became convenient to use it anyway and the message, NOT FOR IDENTIFICATION, was removed.

An old Social Security card with the "NOT FOR IDENTIFICATION" message. Our Social Security Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

1.) That participation in the Program would be Completely voluntary, No longer Voluntary

2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program, Now 7.65% on the first $90,000

3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year, No longer tax deductible

4.) That the money the participants put into the independent 'Trust Fund' rather than into the general operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program, and under Johnson the money was moved to The General Fund and Spent

5.) That the annuity payments to the retirees would never be taxed as income. Under Clinton & Gore Up to 85% of your Social Security can be Taxed Since many of us have paid into FICA for years and are now receiving a Social Security check every month and then finding that we are getting taxed on 85% of the money we paid to the Federal government to 'put away' you may be interested in the following:

Q: Which Political Party took Social Security from the independent 'Trust Fund' and put it into the general fund so that Congress could spend it? A: It was Lyndon Johnson and the democratically controlled House and Senate.

Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding? A: The Democratic Party.

Q: Which Political Party started taxing Social Security annuities? A: The Democratic Party, with Al Gore casting the 'tie-breaking' deciding vote as President of the Senate, while he was Vice President of the US

Q: Which Political Party decided to start giving annuity payments to immigrants? AND MY FAVORITE: A: That's right! Jimmy Carter and the Democratic Party.

Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it! Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! And the worst part about it is uninformed citizens believe it!

 

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