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Why did President Johnson put Social Security Funds into the General Fund?
Wiki User
∙ 11y ago
He didn't. By law, Social Security funds are deposited into the Social Security Trust Fund and cannot be deposited into the general fund.
To add to my colleague's succinct answer, here's a long version:
Workers pay into the Social Security Trust Fund through a separate tax structure, and the money collected is invested in financial markets. If the Trust Fund runs a surplus from these collections (combined with interest earned from investments), the extra money can be given to the General Fund of the Treasury, in exchange for federal government bonds. Therefore, money isn't "taken out" of the Independent Trust Fund, but loaned to the Treasury. At the end of 2010, Social Security had a $2.6 trillion dollar surplus, which given current policy, will continue to grow until the year 2022. After 2022, the fund will decline until it is exhausted in 2033.
The General Fund *cannot* be "raided" by the Treasury; the Treasury can only borrow money, which it has an obligation to pay back (plus interest). Since this borrowing happens all the time, and the borrowed money is used for a variety of purposes, one party or the other will often claim that money has been "stolen" from seniors. This actually means that the Treasury is paying for something the complaining party doesn't like. Since there's always something one party thinks shouldn't be funded, and Social Security is such a potent political issue, politicians will continue to claim that funds were stolen, even though this has never happened.
Wiki User
∙ 11y ago
Wiki User
∙ 12y agoAdd your answer:
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What president borrowed the most from Social Security Trust a Fund?
johnson
Was President Lyndon B Johnson the first President to borrow money from the Social Security Bank?
No, President Lyndon B. Johnson was not the first president to borrow money from the Social Security Trust Fund. Presidents before him, including Franklin D. Roosevelt and Harry S. Truman, had also borrowed from the trust fund to finance government expenditures. Borrowing from the Social Security Trust Fund has been a common practice by several presidents since its establishment in 1935.
What party started medicare or social security?
The Democratic Party under President Franklin D Roosevelt (for Social Security, 1935), and the same party under Lyndon Johnson for Medicare (1965).
Did Johnson raid social security?
yes
What was added to the social security as part of president Lyndon b Johnson's great society?
basic medical services for the poor and disabled
Medicare is a social program that was enacted during the terms of President?
lyndon Johnson It was president Johnson.
Is a Social security number required to be president?
Of the United States of America, Yes. You have to have a social security number to be a citizen and you have to be a citizen to be president.
Did George W. Bush borrow from social security?
No president can borrow from social security or any other gocvernment agency. Social security is controlled by the US Congress. Congress has made a long-time practice of borrowing all the money collected from social security taxes ( FICA) and spending it in the general fund. The social security fund consists entirely of "IOUs "( bonds) from the US treasury.
Did George W. Bush borrow social security?
No president can borrow from social security or any other gocvernment agency. Social security is controlled by the US Congress. Congress has made a long-time practice of borrowing all the money collected from social security taxes ( FICA) and spending it in the general fund. The social security fund consists entirely of "IOUs "( bonds) from the US treasury.
Medicare is a social program that was enacted during the terms of what president?
President Johnson
Who unlocked social security it was a locked fund?
Lydon B johnson
What president proposed the social security act?
FDR
