Social Security and the National Debt
April 30th, 2008Social Security is not part of the general federal budget fund. When social security taxes or FICA contributions are taken from your check they are supposed to go into what is called the Social Security trust fund where they will supposedly remain until needed by social security recipients. At the current time, however, Social Security is running a surplus, so what actually happens is that the excess is borrowed and shifted into the general federal budget fund to pay for ongoing federal expenses and interests. The amount borrowed is replaced by an IOU from the government. This is a very nice arrangement as it lets the government spend money it doesn’t have without having to raise taxes.
Read more at US Public Debt and What It Means to You
