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Thunderbeast

(3,638 posts)
5. The "Trust Fund" is only an accounting construct.
Sun May 14, 2023, 08:10 PM
May 2023

There is no pot of money designated in a vault somewhere with your name on it.

Every dime spent by the Federal government comes from taxes paid by current workers. The Social Security surplus dollars generated by us boomers were loaned back to the general Fund to pay for then current services. Now that there are fewer workers paying FICA taxes, the commitments are in jeopardy.

A default on the debt will prevent the Treasury from borrowing to pay for anything beyond what current tax collections can fund.

The Constitution does not authorize the President to make the decision about who gets paid...only Congress is authorized to appropriate funds.

Whatever happens, someone (Congress or the President) will be violating the Constitution if the debt ceiling is not raised and funding impounded.

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