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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (118435)	8/27/2001 5:31:19 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Do you know where your social security funds are tonight (don't look at me, I don't know either!) cbs.marketwatch.com CBO: Government raids Soc. Security By William L. Watts, CBS.MarketWatch.com Last Update: 4:00 PM ET Aug. 27, 2001 WASHINGTON (CBS.MW) -- Tax cuts and a slowing economy will force the U.S. government to take $9 billion out of the politically sensitive Social Security surplus in the current fiscal year, congressional budget analysts said Monday. The update by the nonpartisan Congressional Budget Office, which is scheduled for official release Tuesday, conflicts with more optimistic projections issued by the White House Office of Management and Budget last week. OMB predicted the government would maintain a non-Social Security surplus of $1 billion in fiscal 2001 and fiscal 2002, according to lawmakers who had seen the official report. The CBO figures triggered more bickering between Republicans and Democrats over the fate of the so-called Social Security trust fund, which both parties and the White House have vowed not to touch. The CBO sees a total budget surplus for fiscal 2001, which ends Sept. 30, of $153 billion, including Social Security receipts, said Rep. John Spratt of South Carolina, the senior Democrat on the House Budget Committee. That marks a decline of $122 billion from CBO's May estimate. "This is not a short-term cyclical problem, this is a long-term structural problem," Spratt said. The CBO baseline estimates don't assume any of the additional spending included in the Bush budget plan or the congressional budget resolution for defense, education and Medicare prescription drugs, as well as funds for other items, he said. CBO projects a small non-Social Security surplus of $2 billion in fiscal 2002, followed by an $18 billion dip into Social Security funds in fiscal 2003 and $3 billion in 2004, Spratt said. The use of Social Security payroll tax receipts for other government spending has no impact on benefits. Both parties, however, have pledged to use the funds to pay down public debt in an effort to shore up the fiscal picture before so-called Baby Boomers begin to retire in large numbers. The differences between the CBO and OMB projections stem in part from differing takes on likely economic growth. The OMB forecast growth rebounding to 3.2 percent in 2002, while the CBO is forecasting 2.6 percent, reports said. The closely followed Blue Chip Economic Indicators survey of 100 leading economists produced a median forecast of 2.8 percent. The White House forecast also employed accounting changes and other assumptions that the CBO didn't use. Democrats have accused the Bush administration of reckless fiscal management, charging that the president's $1.35 trillion tax cut is largely to blame for a raid on the Social Security surplus. Republicans contend the surplus will be safe as long as spending remains under control. Bush last week said the Social Security surplus should remain untouched except in the case of emergencies, such as recession or war. Earlier Monday, the Republican National Committee unveiled a television ad campaign accusing top Democrats of lying about the budget surplus. The small ad campaign targets markets including Washington; South Dakota, home state of Senate Majority Leader Tom Daschle; and Missouri, House Democratic leader Dick Gephardt's home state. The ad is titled ``A New Tone.'' It promotes Bush's role in cutting taxes -- sending money back to taxpayers to get our economy growing again." The ads come in response to Democratic ads launched last week that accused Bush of squandering the surplus.