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I agree with fatguy, the goverment just can't help themselves, they love to spend. This buys them votes!
I really appreciate all that have commented on my blog and believe they may find the following link interesting.
I meant to type "or an equal amount of spending cuts ISN'T implemented."
The payroll tax cuts have no impact on the Social Security Trust Fund as Section 601(e) of the legislation states:“There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund [the Social Security Trust Fund] established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the application of subsection (a) [the payroll tax cut].”
The tax cuts will increase the deficit if new revenues aren't raised to cover the federal transfer of funds to the Trust or an equal amount of spending cuts are implemented.
Observer, there is some perverse logic in redeeming the trust fund bonds. It's accounting flim flammery because even though the government still has to go out and borrow more money it doesn't add to the overall debt.
It is a book keeping transfer of trust fund debt to public debt. Public debt increases and trust fund debt decreases - total debt stays the same. Public debt is the debt that can't just be blown off without defaulting, unlike the trust fund debt which the government has no legal obligation to pay.
Social Security has been broke since last year. The Ponzi scheme finally reached the point that there was not enough money coming in to pay benefits. So, they have been "redeeming" bonds from the supposed $2.3 Trillion "Trust Fund", which consists of nothing but IOU's payable by the taxpayer. The only problem with this is that every time a bond is "redeemed", the Treasury Department must borrow money somewhere to pay for it, as we are running at a deficit. Anyone who thinks this is just nifty can thank LBJ (hill country white trash) and his Unified Federal Budget.
ObaMao's cut in FICA withholding will just hasten the day when even the imaginary Trust Fund is gone. Like most politicians, he knows that day will come long after he is out of office.
I don't believe there actually is an exclusive trust fund for social security. I think they sweep all that money into the general operating fund after payouts.
Careful Alton anyone opposing the president much less questioning his "agenda" will be accused of "hating" the president, and although it's not said the implication is clear you are a racists.
Secondly if you are concerned about the senseless, reckless spending well, you just don't care about the unemployed or the poor - even though it's the spending that is destroying the economy and making more people unemployed and poor.
If anyone has any doubts where this president is leading us all one has to do is take a look at where Europe is now and where it's been. It has nothing to do with a person's color, in fact many black leaders and economists are saying the same thing.