That’s incorrect on many levels. The biggest is that there is no social security “fund” as such. There is no government account holding cash for social security payouts. What’s called a “trust fund” has always been just an accounting entry, a claim on future tax receipt.
As for Reagan and taxes: iIf you look at the NIPA (National Income P…
That’s incorrect on many levels. The biggest is that there is no social security “fund” as such. There is no government account holding cash for social security payouts. What’s called a “trust fund” has always been just an accounting entry, a claim on future tax receipt.
As for Reagan and taxes: iIf you look at the NIPA (National Income Product Account) data you’ll see that a combination of lower statutory tax rates and lower inflation led to a massive shift in patterns of investment. Billions invested overseas were repatriated to this country, and billions invested in Treasury bills to avoid tax were shifted to taxable investments. The result was both a massive increase inFederal tax receipts and the longest sustained period of economic growth in US history.
Has nothing to do with SSA trust funds. Foreign investors do not pay FICA taxes.
The Social Security trust funds are financial accounts in the U.S. Treasury. There are two separate Social Security trust funds, the Old-Age and Survivors Insurance (OASI) Trust Fund pays retirement and survivors benefits, and the Disability Insurance (DI) Trust Fund pays disability benefits.
You appear to have misunderstood my comment. During the high inflation of the 70s, investors transferred funds to foreign investments and domestic government bonds to avoid effective tax rates (statutory + inflation effects) in excess of 100%. When inflation came down and statutory rates were lowered, foreign investments were repatriated and tax receipts went up. You can look up the numbers for yourself on the Federal Reserve’s FRED web site.
I don’t think you understand how SS is accounted, or what Bill Clinton did when he made the SSA nominally independent. By doing so, he created a fiction- that SSA indebtedness does not contribute to the debt. But it’s all part of government indebtedness.
Without reference to any particular time, your comment is meaningless. Billions were transferred to overseas accounts and to tax-free government securities in the years leading up to 1985. The tax reform act reversed that. Money was repatriated and transferred to taxable investments.
From 1984 to 1990, US GDP grew 67% from $3.6T to $6t, while Federal tax revenue increased 67% from approximately $100B to $1T. During that time the tax burden also shifted upwards, and continues to do so.
You use NIPA which is accounting hogwash. NIPA teies to equate spending of capitol to producing of a product and counting it in GDP? HA HA!
According to the formula, national income is calculated by adding together consumption, government expenditure, investments made within the country, and its net exports- deducting imports from exports, foreign production by a resident of the country, and then subtracting the domestic production by residents of another ..
That’s incorrect on many levels. The biggest is that there is no social security “fund” as such. There is no government account holding cash for social security payouts. What’s called a “trust fund” has always been just an accounting entry, a claim on future tax receipt.
As for Reagan and taxes: iIf you look at the NIPA (National Income Product Account) data you’ll see that a combination of lower statutory tax rates and lower inflation led to a massive shift in patterns of investment. Billions invested overseas were repatriated to this country, and billions invested in Treasury bills to avoid tax were shifted to taxable investments. The result was both a massive increase inFederal tax receipts and the longest sustained period of economic growth in US history.
Has nothing to do with SSA trust funds. Foreign investors do not pay FICA taxes.
The Social Security trust funds are financial accounts in the U.S. Treasury. There are two separate Social Security trust funds, the Old-Age and Survivors Insurance (OASI) Trust Fund pays retirement and survivors benefits, and the Disability Insurance (DI) Trust Fund pays disability benefits.
You appear to have misunderstood my comment. During the high inflation of the 70s, investors transferred funds to foreign investments and domestic government bonds to avoid effective tax rates (statutory + inflation effects) in excess of 100%. When inflation came down and statutory rates were lowered, foreign investments were repatriated and tax receipts went up. You can look up the numbers for yourself on the Federal Reserve’s FRED web site.
You obviously do not address the trust funds. SS benefits are not paid from general funds. NOTHING to do with debt or deficits.
I don’t think you understand how SS is accounted, or what Bill Clinton did when he made the SSA nominally independent. By doing so, he created a fiction- that SSA indebtedness does not contribute to the debt. But it’s all part of government indebtedness.
The trust funds are not scheduled to become insolvent for 11 years.
BTW, Clinton did not have the power to encumber the trust funds.
Billions went overseas bud, not repatriated except for a few folks at the upper 1 percentile!
Without reference to any particular time, your comment is meaningless. Billions were transferred to overseas accounts and to tax-free government securities in the years leading up to 1985. The tax reform act reversed that. Money was repatriated and transferred to taxable investments.
From 1984 to 1990, US GDP grew 67% from $3.6T to $6t, while Federal tax revenue increased 67% from approximately $100B to $1T. During that time the tax burden also shifted upwards, and continues to do so.
You use NIPA which is accounting hogwash. NIPA teies to equate spending of capitol to producing of a product and counting it in GDP? HA HA!
According to the formula, national income is calculated by adding together consumption, government expenditure, investments made within the country, and its net exports- deducting imports from exports, foreign production by a resident of the country, and then subtracting the domestic production by residents of another ..