re: 'You earned it, you keep it act' bill would eliminate taxes on Social Security

quote:

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And what is this? Is this correct?

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Not really.
The SSTF is a compilation of IOUs.

As soon as your SS tax payments arrive in DC, they are converted to interest-generating debt-instruments (IOUs), and the money is spent on whatever it is the government spends money on. Meanwhile, interest generated is reinvested and/or distributed in payouts to SS recipients.

"Raiding the trust fund" was always the design. In the mid-1930's, FDR needed to borrow money to fund the New Deal. During the depression, few lenders were interested in buying US bonds/treasuries. SS was a means of forcing every working American to lend FDR money (buy bonds) under the auspices of a retirement program.