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Politics : Formerly About Advanced Micro Devices
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To: Bill Jackson who wrote (47389)1/26/1999 8:08:00 AM
From: gnuman  Read Replies (5) of 1570219
 
OTOT Jim McMannis, "Social Security, New High Stakes Math"
Jim, I know you have strong feelings about the SSA based on your post of Jan 19:

"Clintons attempts to "buy off" the public continue with his proposal to totally socialize the Social Security system by using the budget surplus to fund it. His programs continue to complete the buying off of the American people under the guise of only taxing the rich".

Since Clinton is proposing to commit trillions of dollars of tax payer money to "save" the system, I think it's important to understand what's really going on. As I stated in response to your post, over the years the Government has borrowed trillions of dollars from the SSA and Medicare trust funds to help fund the deficit, and at some point needs to repay this debt. This was money paid into SSA and Medicare by the taxpayers. (Under budget rules, the government gets to spend any surplus. They do this by selling Government bonds to SSA).
What Clinton is proposing is to use about $3 trillion of the "projected surplus" to pay off the IOU's, and then borrow back about $2.8 trillion. When the new IOU's come due, the Government would meet them by borrowing from public investors.
(Wonder what happens if the surplus doesn't materialize as planned?)
What's also interesting is that Clinton is actually proposing to spend 155% of the "projected surplus."

Got this from a good article in today's Washington Post. Here's the link.

search.washingtonpost.com

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