Is it true that the federal balanced budget includes the operations of the Social Security trust funds, and would it balance without it?
Social Security was removed from the budget during the 1980’s, but the budget policy makers continue to add the operations of the Social Security trust funds back in to the “unified budget”. This practice has continued despite legislative efforts to stop it, because the federal deficit would be much larger if Social Security excess of income over outgo were not added back in. During 1998 alone, the Social Security excess of income over outgo is expected to be about $100 billion. When this $100 billion is included in the unified budget, the federal government operating deficit appears to be $ 100 billion less than it actually is. The budget “surplus” that the Congress and President claim exists only because of the inclusion of the Social Security excess of income over outgo. By the end of 1998, the total assets of the Social Security trust funds will reach about $750 billion–an amount that has helped to hide the true size of the federal deficit.
Related Questions
- Section E of budget form – Budget Estimates of Federal Funds Needed for Balance of the Project – Is this section used if we the project not being final until after the five-year grant period?
- What would be the impact on the federal budget of diversifying the trust funds into stocks?
- Why is income to the Social Security trust funds counted as a part of the federal budget?
