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Reply #18: The payroll tax holiday has nothing to do with the funding of Social Security. [View All]

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bornskeptic Donating Member (951 posts) Send PM | Profile | Ignore Sun Jul-10-11 06:27 PM
Response to Reply #15
18. The payroll tax holiday has nothing to do with the funding of Social Security.
It only affects the amount collected by the IRS as payroll tax. Social Security receives its money from the Treasury according to the exact same formula as has been used for years. Sometimes that is explained by saying that the reduction in payroll tax collection is paid from the general fund, but that is a little misleading too. What makes no sense is the claim made by some here that thr SS Trust Fund will be somehow tainted because some of it came from the general fund. Social Security is no longer running a surplus, and will not be in the forseeable future,so no money, tainted or untainted, is going into the SS Trust Fund.
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