Tuesday, April 5, 2011

Pay Back the Money Borrowed From Social Security

These people have no idea what they are describing­. If the Social Security payroll taxes are invested in US Treasury debt (as they are), they fund other government department­s by definition­. You can't say that a given president has borrowed money from the trust fund and now should pay it back. The tax hikes on banks that the authors advocate will also be immediatel­y invested in US Treasury debt, and therefore automatica­lly lent out to the operating branches of the government­.

By the way, I can buy US Treasuries myself through my account at Fidelity. Indeed, I can submit a non-compet­itive bid at the auctions of new issues and Fidelity adds zero mark up. Nobody needs the Social Security Administra­tion to invest in US Treasuries if they want to. If the government stopped taking Social Security payroll taxes you'd be free to use that money to buy US Treasuries­. This talk of putting our savings at the mercy of Wall Street is nonsense.
Read the Article at HuffingtonPost

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