The problem with the trust fund accounting is that gives the appearance that SS is fine and needs no alterations until the trust fund is empty on an accounting basis. People like Drum use it in exactly this manner, and this is the error. The effect of SS on the general fund is unaltered whether or not you have a trust fund- the payroll taxes collected either pay for all or part of the SS outlays, or they don't. When they don't, the general fund pays the difference.
— Yancey Ward |