>>>We are getting close to agreement here. The key here is the statement "We would just have less public debt". This is really my whole point.
No we are not close to agreement. The spending that causes the debt, public or otherwise, is unrelated to SS or its reform. SS taxes not only fund SS benefits, but have an 'excess' currently.
>>>>Simply spending the excess money only increases the debt and makes the federal budget in an even worse state to pay future SSA obligations.
Excess income is not responsible for 'debt'. Borrowing causes debt. Spending money you don't have causes debt. But the gov't doesn't simply 'spend the SS excess' as you state. It cannot spend the excess SS on anything but SS, by LAW. But it CAN spend money it doesn't have. When that spending is approved, Congress cannot say where the money should come from. Indeed, no spending is defined as 'out of revenues' or out of 'borrowing', except for programs like SS and part of Medicare. The rest of spending is just spending, irrespective of revenues. YOU MISS THE POINT THAT DEFICIT SPENDING HAS NOTHING TO DO WITH SS.
>>>>Don't let some actuary fool you. It doesn't matter how the "expert" actuaries divide up the pie. The only important financial issues of concern are:
>>>>* Is the public debt going down.
>>>>* Are interest payments on the debt going down.
>>>>If these two things are not happening under the current FICA tax surplus, then the extra taxes are not really helping the system.
You keep on referring to 'the system'. I have no idea what that means. Does that mean the gov't as a whole? Does that mean gov't debt? The SS Trust Fund is ONLY designed to store current SS taxes for future needs. By reducing public debt, it does this. By restoring public debt in the future to the LEVELS IT WOULD HAVE BEEN AT WITHOUT THE SSTF, WE CAN RETRIEVE THOSE STORED TAXES. The excess SS taxes ARE NOT MEANT TO SUBSIDIZE ANY OTHER AREA OF GOVERNMENT.
>>>>You can talk all day about how all the money goes
into the SSA bucket. That money is simply a note for future payment by the operating budget.
Correct. Such note or obligation for future payment INCURRED BY CURRENT AND PAST GENERAL FUND BORROWING NOT RELATED TO SS. No additional obligation is incurred by the SS excess.
>>>>If the debt increases and interest payments increase, how can the government ever hope to repay these loans? Isn't this just common sense?
But the 'debt' and the corresponding interest payments is incurred by the borrowing. The borrowing is done by the GENERAL FUND AND IS UNRELATED TO SS. If the SS excess was invested in private assets that would not lessen the national debt or interest payments by 1 cent. The current debt is not a SS issue!
