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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gnuman who wrote (70228)	11/8/1999 11:36:00 AM
From: Les H	Read Replies (2) \| Respond to of 132070

Rigging the CPI has a number of different benefits: (1) slowing CPI-indexed outlays --- slower growth SS, Medicare, HHS programs (2) slowing tax bracket indexation --- more taxes collected (3) social security tax ceilings aren't indexed by CPI --- more taxes collected Budget surplus was also helped by higher taxes passed by Bush/Democrats in 1990/1991, the end of S&L bailout in 1993/1994, defense spending cuts, shifting borrowing from 30-year bonds to shorter-term maturities, etc. Not much spending restraint to speak of to credit for the 'surplus'. The debt is increasing, and more of the debt is held by Social Security instead of by the private sector. I believe the SS surpluses are running close to $ 150 billion now, if not more, but will peak in a couple of years.