Raiding the Social Security Trust Fund?

Question

Last week on CNBC there was a video clip of Hillary Clinton saying" "George Bush has been raiding the social security trust fund..."

Is that true, or was she lying? Can you explain?

Answer 1

When the government, not just Bush, gives out deficit figures it is for the operating budget, that is the total incoming revenues minus outflow. Social security taxes are counted as revenue but only that amount paid to current retirees is counted as outflow. However when the national debt is calculated the excess in social security taxes paid is added as bonds in the trust fund, which the government has borrowed. The term raided may be too strong of a term, but the money is being spent, and the deficit numbers given out do not reflect that fact.
At the end of the Clinton presidency the government operating budget was in surplus, but a small fraction of the trust fund was still being spent. During the 2000 election campaign Gore said he would put it in a "lock box", or no longer spend it, that is the national debt would not be increased by the trust fund amount. I don't remembered what Bush's position was, but I had the impression he would not spend it either.

Answer 2

Social Security funds are invested in special US government bonds with interest on them providing about 70% of benefits paid to beneficiaries over the long haul. It would kind of hard to "raid" that. There are plenty of other accounting gimicks that can be pulled off though.

Answer 3

the only situation with social protection is that the present crop of politicians are keen screw retirees out of the deal they have been promised whilst they paid the Social protection taxes in the 1st place. this might join the Republican plan. The tax cuts final December have been area of a plan to offer the very disaster we are having now, and this is the excuse they desire to gut the government. there is not any distinction anymore between Republicans and anarchists.

Answer 4

has it been raid or not