What President Has Borrowed The Most Money From Social Security
Article continues below ad
However, AARP clarifies that borrowing from Social Security isn't the same equally stealing from Social Security. "The government has e'er made full repayment, and the interest increases Social Security'due south assets, to the melody of more than $80 billion in 2019 alone," the organization asserts.
The U.S. Treasury is required past law to issue bonds with Social Security surplus coin.
According to PolitiFact, a Social Security surplus has been building ever since erstwhile President Ronald Reagan, anticipating Infant Boomers reaching retirement, hiked payroll taxes in 1982. The U.S. Treasury is required by police force to invest surplus Social Security funds in special Treasury bonds.
Commodity continues beneath advert
Source: Getty Images
"A marketplace rate of interest is paid to the trust funds on the bonds they hold, and when those bonds achieve maturity or are needed to pay benefits, the Treasury redeems them," the Social Security Administration's press office explains.
The federal government can spend the proceeds from U.Due south. Treasury bonds on a multitude of uses, but it must pay the money back with interest, co-ordinate to AARP.
Article continues below advertisement
The surplus money tin can be used on any number of authorities projects.
PolitiFact detailed this process in 2015 in response to social media posts that claimed erstwhile President George W. Bush borrowed $1.37 trillion of Social Security surplus to pay for the Iraq War and for tax cuts for the wealthy. The fact-checking site determined that Bush-league actually borrowed $708 billion and spent information technology on the war and on income tax cuts, but also on the fiscal bailout of 2008.
"Since all money is light-green, the cash that the Treasury received from the Social Security surplus was not earmarked for whatsoever specific government program," Andrew Eschtruth, a spokesperson for the Centre on Retirement Research at Boston College and a former Social Security research analyst at the U.S. Government Accountability Office, told the site.
Article continues below advertisement
The borrowing averts inflation losses and gives Social Security billions in interest earnings.
In 2020, The Motley Fool's Sean Williams argued that the funds the government is borrowing from Social Security are capital that "would otherwise be losing coin to inflation.
Article continues below advertisement
Williams also pointed to the billions in interest that Social Security nerveless. "In 2018, $83 billion in interest income was collected by Social Security," he wrote. "If the folks who believe that Congress stole from Social Security got their style, and the federal government repaid every cent it borrowed, Social Security would have lost out on this $83 billion in interest income in 2018."
Commodity continues below advertizement
In a 2019 article on Nasdaq.com, The Motley Fool reported that Congressional borrowing from Social Security is projected to provide aggregate interest income of $804 billion between 2018 and 2027.
The Motley Fool also said that Congress borrowed $2.9 trillion for Social Security but hadn't "pilfered or misappropriated a cherry-red cent" from the plan. It said, "Regardless of whether Social Security was presented as a unified budget under Lyndon B. Johnson or as a separate entity (i.e., off upkeep), none of its funding has been conflated with normal federal spending."
Source: https://marketrealist.com/p/who-borrowed-from-social-security/
Posted by: bryanthiseld.blogspot.com
0 Response to "What President Has Borrowed The Most Money From Social Security"
Post a Comment