In fact, the Social Security trust fund has been buying the special U.S. government bonds for decades, but only recently have we heard more about so-called "raids." Money borrowed from Social Security isn't earmarked for any federal spending program, in particular, so suggesting that the borrowing was done solely to fund wars isn't correct. Pay Back Social Security -- The Government Has Borrowed More from Social Security than any Other Entity or Foreign Government. Since the Social Security Trust Fund began to accumulate significant balances in 1983, every President has allowed Congress to “borrow” money from the Social Security Trust Fund. The borrowed funds make their deficits look smaller. The debate about Social Security reform contains a certain amount of myth which has been accepted mostly through volume rather than fact. They never mention how much our government has borrowed from Social Security. As soon as the surpluses, resulting from the 1983 payroll tax hike, first began to flow into the Treasury, politicians from both political parties began using the money like a giant slush fund. 0 0. Including whichever President you really like. Although the … Bill Clinton being the last. That's how presidents "borrow" money from the Social Security Trust Fund. If the Social Security trust fund didn't invest in these special bonds, the U.S. Treasury Department would need to sell more bonds to the public at large to finance the federal government. A viral post claiming Pelosi diverted Social Security funds to pay for impeachment costs has been making the rounds on Facebook recently. “Pelosi diverts 2.4 billion from social security to pay for impeachment,” reads the post. 1. 9 … Which presidents have borrowed from Social Security? Christie isn’t lying. US Government Has Borrowed Trillions From Social Security Trust Fund Remember the debt ceiling situation in the summer of 2011? He raided Social Security for 158 billion. Say President George W. Bush " ‘borrowed’ $1.37 trillion of Social Security surplus revenue to pay for his tax cuts for the rich and his war in Iraq and never paid it back." Answer Save. According to some, the "value" of the Social Security trust funds hinges critically on the federal government's ability to pay back the money that it has borrowed from Social Security. As of 2017, Social Security Trust Fund reserves stood at $2.82 trillion, up $19 billion from the previous year. The only way a surplus can be created is by lowering taxes and cut spending. President Trump's termination of the Obama administration's Deferred Action for Childhood Arrivals (DACA) program has drawn mixed reactions. The social security goes into the general fund so ever since that practice started, they all essentially have. To prevent Social Security from losing tax revenue during the reduced Social Security worker 2.0% tax rate reduction in 2011 and 2012, Congress borrowed money from the federal general tax fund and transferred it to the Social Security trust funds. Either the Social Security Trust Fund has real assets to pay benefits or it doesn't; President Obama's recent warnings make it clear it doesn't. But after the 1983 Social Security rescue, when Social Security revenues began exceeding outlays and sizable Trust Fund surpluses began accumulating, the charge of Congress’s stealing Social Security’s reserve money reappeared. The mechanism, which allowed the government to transfer $2.7 trillion from the Social Security fund to the general fund over a 30-year period, was the brainchild of President Ronald Reagan and his advisers, especially Alan Greenspan. Donna. Only Congress has the power to authorize the government to borrow or spend money. The problems of Social Security have nothing to do with what is in the Trust Fund, and everything to do with … This has become a big issue in funding our nation's defense and is only expected to grow. Favorite Answer. One of the most pervasive legends in the Social Security debate suggests that President Lyndon Johnson (LBJ) stole the trust fund in … Social Security trusts, including the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds: $2.91 trillion; Office of Personnel Management Retirement: $920.2 billion; Military Retirement Fund: $916 billion. Everytime Social Security has been raided it has been a Democrat President and Democrat Congress. Another argument made by Social Security opponents to raise fear about the national debt is how much our government has borrowed from China. read more 9 years ago. To be sure, most Americans would rather pay down the debt than use Social Security’s surpluses to fund pork barrel projects. Social Security looms for next president The presidential candidates haven't been silent on the system's long-term funding shortfalls. In exchange, the Social Security trust fund gets another $3 trillion worth of IOUs. Clinton’s lock-box plan is nothing more than a scheme to use more than $3 trillion in Social Security surpluses to buy down federal debt. For more than a quarter of a century, the United States government, under five presidents, has hoodwinked the American public into believing their Social Security contributions would be used for future Social Security benefits when, in fact, all of the surplus Social Security revenue was used to fund such things as tax cuts for the rich, two wars, and other government programs. The real amount owed still shows up in the debt. After that, the payroll taxes go into the General Fund, where they pay for government expenditures. Remember when President Obama said that the government may not have the money to send out social security checks if the debt ceiling wasn't raised? Yes. Well, he did tamper with it. — Facebook posts on Friday, March 27th, 2015 in comments on social media. This would be true if the U.S. Social Security trust fund held debt of foreign countries, but as is, it is an incorrect and misleading comparison because the federal government is lending to itself. Our 36th president is often accused of being the first chief executive to tamper with Social Security financing. Relevance. meg. Read the CBO report of March 1999.. In 1977, President Jimmy Carter and the 95th Congress increased the FICA tax to fund Social Security, phased in gradually into the 1980s. First, No President can borrow money. This is from the C.B.O. He is just wrong. In early 1968 President Lyndon Johnson made a change in the budget presentation by including Social Security and all other trust funds in a"unified budget." Say President George W. Bush " ‘borrowed’ $1.37 trillion of Social Security surplus revenue to pay for his tax cuts for the rich and his war in Iraq and never paid it back." The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. The amount of money the federal government has borrowed from the Social Security trust fund, the Medicare trust fund and other government agencies just crossed the $5 trillion mark. 1999. and what Clinton did. The mishandling of Social Security funds has been going on since the mid-1980s. If the folks who believe that Congress stole from Social Security got their way, and the federal government repaid every cent it borrowed, Social Security … At that time, it … Lv 4. This is likewise sometimes described by saying that Social Security was placed "on-budget." President Barack Obama and former President George W. Bush (AP Photo) (CNSNews.com) - The federal government has now borrowed more money during Barack Obama’s time as president than it did in the period lasting from the time President George Washington took the oath office until July 2, 2001, more than five months into the first term of President George W. Bush. 6 Answers. Lv 6. This comes as the House speaker signed the articles of impeachment against President Donald Trump Jan. 15, before sending them to the Senate for the trial. The problem is our government wont fix social security funding to sustain it for future generations, it's going to have problems unless they somehow fund it better 0 0 Anonymous In his “Save Social Security” petition to President Trump, Perrin claims, “More than $2.7 trillion have been borrowed from the Social Security Trust Fund and replaced with worthless IOUs.” You may visit the website: https://theseniors.center to sign the petition and to learn more information about how the government uses Social Security funds. 21 Talk of Congress’s “raiding” or “dipping into” the Trust Fund to cover federal budget deficits continues to this day. Sources: Social Security Administration, Centers for Medicare & Medicaid Services (CMS)

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