Yes, the federal government borrows Social Security funds, but it is required to pay the money back with interest. Social Security income is deposited into two financial accounts called trust funds – the Old-Age Survivors Insurance Trust Fund and the Disability Insurance Trust Fund. The trust funds are used to pay out Social Security benefits and cover administrative costs,
“Those bonds basically are an IOU from the government to Social Security,” Mary Johnson, Social Security and Medicare policy analyst for The Senior Citizens League, told VERIFY. “In other words, the Social Security trust fund, which is what is authorized to pay benefits, has been loaning money to the U.S. government.”According to the Center for Budget Policy and Priorities
Some people have claimed over the years that the federal government’s borrowing from Social Security equates to “stealing.” But that’s not true. Johnson called these claims “misinformation.”
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