The Trust Fund Fraud.

It is important to remember: When the Reagan Administration claimed to be saving Social Security in the 1980's what it actually did was cut benefits (the most significant of which was the subsidy to surviving children in their pursuit of a college education), raise FICA withholding taxes which could not be sheltered as can be the personal income tax and all with the result of increasing the amount of the surplus which (the public was told) was to be placed into the Social Security Trust Fund for investment to pay future Social Security benefits. This was actually a tax increase for the middle class who lost many of their tax deductions as part of the Reagan "tax reform". Sad to say, all surplus Social Security monies have always been taken to pay for other federal programs by reducing the budget deficit. This was not one of Ronald Reagan's finer moments, though I have always liked him personally. Especially for serving as a positive adult male role model for both myself (born: 1946) and then for my son (born 1980).

Of course, the 1999 Clinton $150 billion budget surplus was subsidized by $300 billion taken from the 1999 surplus of Social Security payments. This means that, in 1999, the U.S. Government actually had a $150 billion budget deficit. The 2000 Clinton budget surplus of $450 billion was also subsidized by another $300 billion from the 2000 surplus of Social Security payments. Every U.S. President, starting with FDR, has perpetuated this myth about Social Security, but only Ronald Reagan, with the help of the Democrats in Congress, ever cut benefits which were paid for in advance of receiving them.

If the Social Security surplus has been $300 billion a year, then in any 10 year period $3 trillion would have to been placed into the Social Security Trust Fund. With annual investment returns of 6% credited to the principle, the sum-total would have to be more than $6 trillion. But the Social Security System has been operating for more than 65 years with a surplus each and every year. Pat Caddell said the Trust Fund should have only $1 trillion. This is another ridiculous lie the Democrats and their federally funded think-tanks continue to perpetrate on the unsuspecting minds of most Americans. The truth is: There is no Social Security Trust Fund (worthy of the name) and even if it did exist, it would be empty. The Social Security Trust Fund is merely a carefully and well crafted political fiction which, when more fully understood, disgraces the memory of those who have been elected to federal office since 1936, when it was first enacted. It makes me sick to think about as it is a towering theft of public monies which makes the Saving & Loan scandal of $800+ billion seem small in comparison.

Edward J. Bradley, Sr.
August 2004
Albany, New York

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