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What president put social security into the general fund?
IT WAS not Lyndon Baines Johnson WHO TOOK OUR MONEY AND PUT IT INTO THE GENERAL FUND. HE did not steal OUR MONEY AND NOW WE HAVE MONEY LEFT AFTER WORKING 60 YEARS WITHOUT THE ABILITY TO HAVE A VOTE ABOUT IT. WE NOW GIVE THE MONEY TO PEOPLE THAT HAVE NEVER PUT A DIME INTO IT AND ARE NOT EVEN CITIZENS OF THE U.S.A. THANK YOU Republican CONGRESS FOR DESTROYING US.
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Social Security pays retirement, disability, and survivor benefits.
It will not unless our country has no money ever again but that will not ever happen. Money that is collected from employees and employers via the FICA tax goes into the soc…ial security fund. The fund is "invested" completely in government bonds that pay interest to the fund. The fund pays the benefits for social security. At the present rate of pay-out and collection, the fund will run out of money in about 2040. The problem is that even before the fund runs out of money, it will have to start cashing in its bonds and the money will have to be found from other taxes. People who are working will have to pay more in taxes in order to pay benefits to to growing number of retired people. Benefits are not likely to be stopped but there will surely be pressure to reduce them.
Roosevelt used SS funds to build the Atomic Bomb, Truman used SS Funds, Eisenhower used SS to build the Interstate and Kennedy and every President since has used SS Funds. The… so called Social Security Trust Fund exists in name only, and they are comingled with the general fund. The above is an over-simplification of the SS Fund. Money collected for SS goes to the SS Administration, which uses the proceeds to pay out current claims, then looks to put the surplus funds into some place to save it for future use. The safest place to invest such money turns out to be U.S. Treasury bonds - thus, the SS Administration goes to the bond market, and buys US Treasury bond. These bonds are a U.S. Government "I.O.U." to the holder, to pay them back their principle, plus X amount of interest, 30 years (usually) in the future. Thus, the funds' AREN'T co-mingled, or "raided", or otherwise. Rather, the SS Administration is the largest creditor of the U.S. government; the impact of this is that Congress has become lazy, being seduced by the easy availability of credit (as they can count on the SS Administration to buy any U.S. Treasury bond that Congress has them float to pay for projects). The concern is that the normal U.S. budget (which does NOT include the SS fund) has failed to account for the fact that the SS Administration is lowering its purchase of bonds (as the yearly expenditures of the SS go up while SS revenue goes down, due to demographic changes), and that the SS Administration will shortly begin to actually cash in bonds (i.e. expecting money back). The normal U.S. budget hasn't taken into consideration that the SS Administration won't be a huge creditor anymore, and, in fact, will begin to "pull out" money from the U.S. government, rather than invest in it. The above is complex, but, the reality is that the actual SS fund ISN'T directly being raided for anything. Rather, the normal U.S. budget process has become addicted to the easy credit that the SS fund has provided. As a side note, the time period where the SS annual expenditures outweighs annual revenue is coming soon - likely sometime around 2023. However, the actual Fund itself still has significant savings at that point, and it will take about another 15 years before the fund is actually "broke" (i.e. has redeemed all the U.S. bonds it has, and still expenditures outweigh revenue).
Legal businesses who employ individuals for work in exchange for money in the USA have a tax ID number that is unique and attached to all finances which is on file by the Inte…rnal Revenue Service (IRS) and the Federal Treasury Department (also known as FMS, Financial Management Services). To be a legal and legitimate employee, an individual employee must have a Social Security Number that is unique and attached to their personal full name, date of birth, city and state of birth and mother's maiden name and is kept on a Master Beneficiary Number file through their lifetime for earnings, taxes, identification, and other references. From each pay check earned for services, work, compensation or tips that an individual receives from their employer it includes a taxation from their gross earning that is set aside into an account for Social Security and Medicare. It is strictly money that comes from the EMPLOYEE only. The taxed funds do not include money from any other source: not the employer, the county, or state. It is from the worker's earned income only. It is not the same as Workers Compensation Fund. A person may have one employer his entire working career or he may have several, dozens, hundreds of different employers until he retires or becomes disabled and unable to do any gainful work. The uniquely identifiable Social Security Number assigned to you, the employee, follows your earning history and the special taxable amounts set aside into the Social Security and Medicare funds are always accruing and kept up to date. Therefore, when you retire from your profession, trade, skilled labor, etc., you notify Social Security Administration and begin to receive back all the moneys you paid into that fund which the Federal government taxed out of your paychecks in monthly benefit checks. So you receive a monthly check, a pension, regularly, from money which YOU EARNED AND SAVED for retirement or should a serious disability arise that forces you to stop working and begin receiving those funds. The funding in Social Security Administration to beneficiaries comes from THEIR paid work. It is not generated by the government itself nor public taxes: the social security administration check I received this month is actually money I saved while I was younger and able to work at my job. This is not to be confused with Social Security Insurance, known as 'SSI'. Social Security INSURANCE recipients receive a monthly stipend that is funded by state and county public taxes. Therefore, a small child can be a recipient of SSI, or a young blind person, or anyone who is ultimately unable to fend for themselves financially and would otherwise be unfed, without a home or the ability to pay for medication and living expenses necessary for survival. Due to our society's economic structure, this social insurance is funded by public taxes and is necessary for the health, safety and welfare of the general public. Without it, those who are unable to have adequate jobs and medical benefits for illness, medicine, hospitalization, childbirth, etc. would be at a total disadvantage, mainly through no fault of their own for whatever reason exists, to survive and would basically resort to desperate crimes to be able to eat, have shelter and live with the rest of the society. However, the beneficiaries of Social Security Administration Retirement are people who are receiving money they earned themselves and are classified different ways. Some are early retirement people, who became disabled and paid enough into their funds to collect it sooner; some are veterans who are retirement age or were injured while serving in the military forces; some are retired that worked for the railroad industry their whole working career, which is a major contributor and factor in our country's economic success. Others are spouses who did not work outside of the home but contributed by raising children and making sure they were educated and fed in a safe home so they could go on and become independent, self sufficient members in society and therefore are entitled to receive a retirement pension of their own from the husband or wife's working fund, because the Federal government and society recognizes that to be the same as being employed full time, even more so. We hope you have a better understanding and answer about how or where the funds come from regarding Social Security Administration's Retirement. It is a good question that many people think about often but is often overlooked when talked about or read in books and newspapers.
Social Security is funded through salary deductions.
we do from working.
He didn't. By law, Social Security funds are deposited into the Social Security Trust Fund and cannot be deposited into the general fund. To add to my colleague's succinct an…swer, here's a long version: Workers pay into the Social Security Trust Fund through a separate tax structure, and the money collected is invested in financial markets. If the Trust Fund runs a surplus from these collections (combined with interest earned from investments), the extra money can be given to the General Fund of the Treasury, in exchange for federal government bonds. Therefore, money isn't "taken out" of the Independent Trust Fund, but loaned to the Treasury. At the end of 2010, Social Security had a $2.6 trillion dollar surplus, which given current policy, will continue to grow until the year 2022. After 2022, the fund will decline until it is exhausted in 2033. The General Fund *cannot* be "raided" by the Treasury; the Treasury can only borrow money, which it has an obligation to pay back (plus interest). Since this borrowing happens all the time, and the borrowed money is used for a variety of purposes, one party or the other will often claim that money has been "stolen" from seniors. This actually means that the Treasury is paying for something the complaining party doesn't like. Since there's always something one party thinks shouldn't be funded, and Social Security is such a potent political issue, politicians will continue to claim that funds were stolen, even though this has never happened.
it was never transferred to the general fund.
SSDI or social security disability insurance is a paid into program. People receiving it must have worked 20 of the last 40 quarters (5 consecutive years) and are paid money e…ach month from what they put in as taxes. SSI or Supplimental Security Income is paid for by federal taxes.
President George W. Bush. His son, the other President Bush borrowed severely from the social security fund and brought us to where this country is today. Actually S…ondraC, George W. Bush was the son. The father was George H.W. Bush. Congress was responsible for borrowing against the surplus. There has never been any money in the Social Security Trust Fund. The law prohibits the government from keeping cash laying around. There are only IOU's I the Trust Fund. This is because Congress immediately borrows the surplus funds and replaces them with Treasury Notes that have a rate of about 3%. Sometime after 2009, not sure what year, Social Security was no longer bringing in a surplus. It may be drawing against the bonds now, but I would have t check that out.
The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Depart…ment of the Treasury; they are not, nor have they ever been, put into the "general operating fund." However, the Social Security Act specifies that the monies in the fund may "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). This has always been the case. During the Johnson administration, Social Security and other Federal programs that operate through trust funds were counted officially in the budget. This did not mean that it was actually part of the general fund, rather that it was finally recorded as part of the budget.