Social Security - did Bush spend it?

[Killarney]

Did Bush spend money from Social Security?

If Gore was elected and did his "lockbox" thing, would we be having the problem we're having now?

(My thought is no and that Bush f'd up, but I want to make sure this is right before I start ranting and raving.) ;)

[rhino91063]

1. YES! Yes he did!

The Effects of the Bush Tax Cut Plan on Social Security, 2001-10

Citizens for Tax Justice, February 2000 202-626-3780



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Texas Governor George W. Bush has promised that his huge tax cut plan will not endanger the Social Security trust fund. But, in fact, the cost of the Bush tax cuts would far exceed officially projected non-social-security budget surpluses over the next decade. As a result, the Bush tax plan would raid as much as three-quarters of the ten-year projected Social Security surpluses.
Over the next decade, the Congressional Budget Office projects budget surpluses, excluding Social Security, of $838 billion--assuming that discretionary appropriations are held flat in inflation-adjusted dollars.(1) If one instead assumes that discretionary appropriations will grow with population as well as inflation, then these projected budget surpluses fall to only $399 billion. If, as seems most likely based on the historical record and current political climate, appropriations keep up with the economy, then the entire non-social-security surplus disappears.

Meanwhile, over their first nine years (fiscal 2002-10), the Bush tax cuts would cost $1.8 trillion (including $265 billion in added interest costs). As a result, over the next decade, the Bush tax cuts would far exceed all reasonable projections of upcoming non-social-security surpluses.

<snip>

http://www.ctj.org/html/bush02an.htm

[papau]

2. Lockbox meant pay down National Debt not owned by Social Security

leaving room to borrow when it came time to get cash needed to redeem the bobds owned by the Social Security Trust fund.

US bonds are only promises to borrow from the capital markets or to raise taxes in the future.

So the answer is yes - Bush took the yearly payroll tax surplus that Reagan demanded in 83 when Reagan raised the retirement age to 67 - 66 in a few years and 67 by 2027, and spent it on bombs because he had cut the cash coming in from the rich via the tax cuts for the rich, and still needed to pay for those bombs.

If Gore had been elected the SS system would have less problems than now - but even with the Bush mis-management the SS System is solid - as the Bush Administration on hold telephone message will tell you if you call Social Security - the system is solid through 2042.

In 2043 the wage base must rise or the retirement age must be increased to 70 from the Reagan 67.

Separate accounts using the current payroll tax monies will destroy the system. This proposal is a cover to cut benefits now so that the repayment of the payroll tax funds stolen to finance the tax cut for the rich need not be repaid via a tax increase on the rich beginning in 2017 when SS plans to start cashing in those bonds.

[ithacan]

3. worse: He gave it all to the top 1% of rich folks

this is a way to destroy Social Security and pay off the rich guys that benefit the most from Bush.