Did the federal government borrow from social security?

The Social Security Trust Fund was created in 1939 as part of the Amendments enacted in that year. From its inception ... The Social Security Trust Fund has never been "put into the general fund of the government." Most likely ... This means that every function of the federal government is included in a single budget. read more

While the Federal Government has borrowed from the Social Security Trust Fund since it began, in 1983, President Ronald Reagan (a Republican) and Speaker of the House Tip O’Neill (a Democrat) came to an agreement to increase Payroll taxes allowing the Social Security Trust Fund to build a large surplus so they would have the funds to help pay the Social Security obligations to baby boomers when they retired. read more

The controversy arises when considering Social Security in the context of the federal budget and the broader economy. The mechanics are clear. When the Social Security commissioner redeems his bonds, the secretary of the Treasury must get the money from somewhere. One obvious option is to go out and borrow it. read more

The interest the government owes to the Social Security Trust Fund for the funds it has borrowed from Social Security represents a legal obligation of the government. Interest earned on Social Security investments has always been used to pay Social Security benefits. read more